Tuesday, May 26, 2009

Sherwoods boosts portfolio of re-sale offerings as investors, buyers focus on secondary property market

Sherwoods boosts portfolio of re-sale offerings as investors, buyers focus on secondary property market

UAE property sector sees major turnaround in investment traffic with up to 95 per cent of transactions being done in ready property

May 26, 2009
Sherwoods Independent Property Consultants has recently announced that it has beefed up its portfolio of services and offerings catering to the reseller market to address a sharp surge in re-sale transactions within the UAE's property sector. Sherwoods noted that re-sales accounted for an estimated 95 per cent of property transactions in the first quarter of 2009, a complete turnaround from just around 30 per cent in the previous year.

Sherwoods pointed out that the major shift to re-sale activities has been the result of steady corrections in the property market. Furthermore, Sherwoods noted that the decline in prices will subsequently bring property values to more appropriate levels and ultimately help set sustainable benchmarks for new development projects in the property sector.

Iseeb Rehman, Managing Director, Sherwoods Independent Property Consultants commented: "Although actual figures are not available, based on Sherwoods' experience I would say that in the first quarter of 2009, only around five per cent of property investments have gone into new projects, while 95 per cent has been channelled to the re-sale market. This is a considerable turnaround as off-plan project sales accounted for around 70 per cent of transactions in the previous year with only 30 per cent going to the reseller market."

"As a natural reaction to the global downturn, the property market is experiencing a slowdown in the launch of new projects, which has subsequently shifted the focus on ready-to-occupy properties. Moreover, with asset valuations seeing sharp correction and prices falling in the re-sale market, we can expect the entire property sector to benefit in the long run as values get back to the right levels, which will become the new and more sustainable benchmarks for developers to launch their new projects," added Rehman.

Sherwoods also pointed out that the competitive price range in secondary markets has been a key factor in boosting the growing buying interest of international investors, who are also taking advantage of fluctuations in the exchange rate to optimise their long-term investment initiatives. Furthermore, Sherwoods emphasised that availability of bank financing will be an important factor in fully harnessing the huge potential in the secondary market as end-users rather than speculators are now more inclined to buy property in view of the excellent range of offerings in the ready property market.

"Although the sharp correction in values of property in the secondary market and the significant savings being brought about by differences in exchange rates have greatly empowered buyers to choose from a wider selection of premium properties, bank financing must also have to come back into full swing to fully realise the market potential of genuine buyers," Rehman concluded.

Founded in 1988 in the UK by Iseeb Rehman, Sherwoods has grown to become one of the leading international real estate companies. Sherwoods has established several international branch offices in the UAE, UK, France, and soon in other key locations around the world. The company offers a diverse range of services, including search & acquisition of properties; development consultancy, land appraisals and valuation; sales & lettings of residential/commercial property; new home sales; residential & commercial property management services; legal, tax and insurance services; and mortgage & remortgage.

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