Zirve Eki - ISTANBUL REstate

Mosab AlJassim: Like hyper markets, like Emirates, like all these
guys. And that is more solid. That is more institutionalized. And
this is what we want really. So basically we get approached by one
of these players and with either a plot of land or he wants us to
build. It is like a BOT model basically. So we come and develop.
We have an agreement for 15 years on a good lease.
Ahmet Kayhan: Yes, that is an opportunity. What is the name
of the game? Is it equity?
Mosab AlJassim: Equity is the game, yes.
Ahmet Kayhan: Who is equity?
Mosab AlJassim: Investors' high net worth mostly but we are
again seeing a lot of flow from European funds and Far Eastern...
Ahmet Kayhan: German funds.
Mosab AlJassim: German, exactly. And even Finnish, I've dealt
with them personally. So Scandaniavian, Germany and a lot of
funds from Asia as well. I have seen that, during my trip to China,
there is a big interest to come and invest in Dubai. Today with the
rules, with the clearing process that we have, we have very good
investment channels. So it is not as it is used to be. Where you
come put a check with anyone and then leave. No. It is very secured.
It is very attractive and it makes all the investors come and invest
today. So we see that flow as well.
Ahmet Kayhan: Residential?
Mosab AlJassim: Mostly residential. But also some people are
very keen to develop commercial as well like Deutsche Bank, for
example, are keen to finance on equity basis of commercial projects.
Ahmet Kayhan: Office is really re-grade now. We know that
is just like oil suply and everything. Retail is really strong still. There
is a demand for that. What else on the commercial side?
Mosab AlJassim: Basically the villas are very good as well like
residential
Ahmet Kayhan: Long term
Mosab AlJassim: Long term
Ahmet Kayhan: Yes
Mosab AlJassim: Yes.
Ahmet Kayhan: We did an analysis of the gold price. There is
a direct correlation between gold prices and villas. And there is a
huge demand. People, what happened is in Dubai. One thing we
missed is that. When Dubai get affordable the surrounding Emirates
started moving into Dubai. Even people moving from Abu Dhabi
to Dubai because Dubai is more affordable than Abu Dhabi because
Abu Dhabi has undersupply. And it is coming as well. They are
also addressing that. At the same time...
Mosab AlJassim: It is very comprehensive that development
we have in Dubai, I mean, you can find good schools, very good
shopping malls, state of our infrastructure, transportation means,
very good airport connected to everywhere. This really attract some
other people. We see now even sometimes on off plan projects
Ahmet, a lot of people are coming to buy off plans in Dubai. Every
project is going ahead. I can see, I saw myself in the last 6 months,
a lot of transactions on off plan projects. But very selected, like
end users really knowing what they want but they want like
freedom to pay in three years' payment plan. Because there are
no leverage.
120 GYODER
Gayrimenkul Zirvesi 10
16-17 Haziran 2010
Ahmet Kayhan: Again wrapping up. So, Marwan, I will be
asking like a couple of areas. What will be the, a few word to
highlight among all these to us, right, there are a lot of opinions
around there. And what will be the lesson? Is Turkey is like booming
right now on the basis of the local economy? There is a super
interaction between the Gulf and Turkey right now. It is getting
closer and high trends stronger as well. And there are a lot of areas
that Turkey can do together with Dubai as well. So where do you
see the opportunity? What will be the lesson that you would be
advising to the crowd?
Marwan Bin Ghulaita: Before seeing what is the lesson, I want
to tell you just go and look to our market and study the opportunities.
There is a lot of opportunities there. And you just need to, just look
to the Internet or the Dubai.com or our website, land department,
Reidin.com. and you will get all the information you want and you
will see the opportunities that it is there. And nowadays we are
studying or introducing, we are in the final stage of introducing
the registration for the reeds. We are trying to attract more institutional
investment instead of individuals. If we will talk about the lessons
Ahmet, I will say transparency is always required for any market.
So as much as transparency you can get to the end user, to the
investors, it's better. Transparency is very good issue, professionalism.
When the boom started a lot of players came in the market, maybe
the groceries shop, the car driver become an agent and anybody
who does not know about real estate at the end of the day, he
become a developer. So professionalism is very good thing to watch
for. You do not need too much regulation. Overregulation is not
the solution. A good regulation that will protect everybody and
make their life easier, make their life smooth and make doing
business and the environment is better for the rest. this is the most
important things. And planning, planning, planning. So like today
in Dubai, what we are trying to do is to control the supply more
and more. Because at that time, as they said, everybody become
a developer and everybody launched a project in the booming time.
But today because of the crisis, then we thought "oops, we have
forgotten the affordable housing". Everybody start building -luxurious
for end users. Then you replan again and do your thinking
to "okay, let me cover this affordable houses sector." So planning
is very important thing and don't worry about crisis. Crisis happen
every day. But if you stop working because of the crisis, nobody
will move. So crisis bring opportunities as Doctor said and always
look at opportunities in a crisis time.
Ahmet Kayhan: So do your homework, don't lose your home.
Marwan Bin Ghulaita: Yes.
Ahmet Kayhan: Doctor?
Mosab AlJassim: Well, basically the lesson, the biggest lesson
is we should really work for fundamentals and believe in our market
and really be proud of what we have done. Protect what we have
gained so far which is very important for us as investors as well.
Because does it make any sense for you to grow without having
really a saving policy to protect what you have built and achieved
so far? But again continue building smartly in the right direction for
the right market. And invite people like you to come to Dubai and
invest with us as well.
Ahmet Kayhan: Okay. We have one question here. Any questions?