Nakheel Credit Notes are being traded again at the Nakheel head office. They were suspended for a while and we believe they have re started to allow people to consolidate their credit into different projects as of last week.
The credit notes have been trading ever since the Credit Crunch hit Dubai in October 2008. All the major developers have been allowing people to trade out of stalled projects into other stock.
It used to be that you could transfer your credit into any other property and even a property that was not in your name. Recently the Developers, and especially Nakheel, have only allowed people to transfer funds into a property they already own. This has slowed the consolidation market down considerably ,as it is effectively forcing people to buy another property ( and introduce more cash) before they can transfer their credit.
Some people are looking to buy credit from those people that have it and they are purchasing at a discounted rate in the region of 40%. The sellers of credit are obviously taking a huge hit on their ‘asset’ but after nearly two years of little improvement in the market, sellers have become pragmatic about the situation and many are deciding to cash in and place the reduced balance into other assets.
Throughout 2010 Credit Notes have been the mainstay of the Dubai property market with these transfers far outstripping legitimate house sales. In the short term this trend is likely to remain as people organize their portfolios the best way they can.
Showing posts with label Nakheel. Show all posts
Showing posts with label Nakheel. Show all posts
20 June, 2010
06 January, 2010
Costa v Starbucks
Two cups of coffee in the space of an hour and two totally different views of Dubai.
So, Monday 10 am and I have arranged to meet an investor who I have been chatting on and off with for the past 5 years. I generally prefer Starbucks to Costa so we met at JBR for a change from my usual surroundings.
As we stood in line, waiting to order, I politely asked about the kids with every intent of doing a bit of 'oohing' and 'aahing' about the snowfall in the UK. Not necessary as we were straight into the property game quicker than it takes Emaar to change a name on a Tower.
Its like this Mark . I have sat it out for years and Dubai has been good to me but I just don't feel comfortable anymore with any investment outside of the Palm Jumeirah. Jebel Ali in my opinion is a long long way off ,if ever, and I want out. Quite frankly if it was my development company that owned it, he said, I would dump it.
Slurping away at my piping hot skinny latte I bought a bit of time and feigned burnt lips and wiped away the froth from the side of my mouth whilst I thought of an answer
With his eyes bearing down on me he was only expecting one answer . 'You're right the place is never going to get built and you should run for the hills with 50% of the original price in your back pocket.'
It was early and I really didn't feel like the challenge so I shrugged and said 'we don't call it Wobbly Jelly for nothing'.
I honestly haven't got a clue what will happen but one thing for sure is that there is a very large piece of reclaimed land in Jebel Ali waiting to be developed.
After dodging the bullets my latte had cooled down to a temperature where I could gulp rather than slurp so I made my pleasantries and left. I was now Costa bound on the Palm for another potential lecture in how the world is doomed.
Skinny Cappucino please - who am I kidding? the belt is a full stretch since Xmas. We settled down with our respective drinks and I couldn't beleive my ears. 'Mark, I want to buy in Jebel Ali. I know its a risk and information is limited but you know there is a big piece of reclaimed land out there and one day it will get developed. I want in now'. Not exactly deja vu but i thought someone had spiked my drink.
No point in asking this guy about his kids then!!
This is what it is like at the moment. Everybody has a view on the state of the economy and in this emerging market we call Dubai there are a hell of alot of risk takers living here. For sure there are going to be some more tears but at the same time there are going to be some seriously happy people.
I still prefer Starbucks as a venue but for a coffee with a kick I highly recommend a trip to Costa Coffee on the Palm where I think Nakheel are sponsoring the extra shots.
So, Monday 10 am and I have arranged to meet an investor who I have been chatting on and off with for the past 5 years. I generally prefer Starbucks to Costa so we met at JBR for a change from my usual surroundings.
As we stood in line, waiting to order, I politely asked about the kids with every intent of doing a bit of 'oohing' and 'aahing' about the snowfall in the UK. Not necessary as we were straight into the property game quicker than it takes Emaar to change a name on a Tower.
Its like this Mark . I have sat it out for years and Dubai has been good to me but I just don't feel comfortable anymore with any investment outside of the Palm Jumeirah. Jebel Ali in my opinion is a long long way off ,if ever, and I want out. Quite frankly if it was my development company that owned it, he said, I would dump it.
Slurping away at my piping hot skinny latte I bought a bit of time and feigned burnt lips and wiped away the froth from the side of my mouth whilst I thought of an answer
With his eyes bearing down on me he was only expecting one answer . 'You're right the place is never going to get built and you should run for the hills with 50% of the original price in your back pocket.'
It was early and I really didn't feel like the challenge so I shrugged and said 'we don't call it Wobbly Jelly for nothing'.
I honestly haven't got a clue what will happen but one thing for sure is that there is a very large piece of reclaimed land in Jebel Ali waiting to be developed.
After dodging the bullets my latte had cooled down to a temperature where I could gulp rather than slurp so I made my pleasantries and left. I was now Costa bound on the Palm for another potential lecture in how the world is doomed.
Skinny Cappucino please - who am I kidding? the belt is a full stretch since Xmas. We settled down with our respective drinks and I couldn't beleive my ears. 'Mark, I want to buy in Jebel Ali. I know its a risk and information is limited but you know there is a big piece of reclaimed land out there and one day it will get developed. I want in now'. Not exactly deja vu but i thought someone had spiked my drink.
No point in asking this guy about his kids then!!
This is what it is like at the moment. Everybody has a view on the state of the economy and in this emerging market we call Dubai there are a hell of alot of risk takers living here. For sure there are going to be some more tears but at the same time there are going to be some seriously happy people.
I still prefer Starbucks as a venue but for a coffee with a kick I highly recommend a trip to Costa Coffee on the Palm where I think Nakheel are sponsoring the extra shots.
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