Thursday, April 5, 2007

Anyone got a new landlord yet?

We're aware that some people have opted to purchase their apartments. But for those who confirmed over a month ago that they would not, we're not aware of anyone being contacted regarding their new landlord yet.

Considering that EMAAR originally wanted tenants to purchase in just two weeks, it seems rather strange that after a month of the apartments "being offered for sale on the open market" they are yet to inform tenants of their new landlords (if indeed the apartments have been sold).

And if the apartments have not been sold yet, it does rather cast doubt on EMAAR's claims to have purchasers lined up and chomping at the bit to buy.

Maybe the urgency by EMAAR was just designed to pressure tenants into buying? EMAAR presumably knows that a tenanted property, with the tenant on well below market rent, is not worth anywhere near what a similar apartment with 'vacant possession' would be (since it cannot be occupied or rented out at market rate). So what better way to maximize revenue than to cajole the current occupant into buying something he can currently rent at half the price?

And if you believe in property for long term growth, why not put money down on a new 2-bed for delivery in 2009, which would cost less than a 1-bed in the Greens now? That 2-bed is certainly going to be worth more than the Greens 1-bed once it is built.

Meanwhile, EMAAR's share price in the past couple of weeks has hit new lows, dropping to well below 11 dirhams.
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