articles 1 to 11 of 11
Why Global Real Estate Developers Are Eyeing the U.S.
Earlier this year, one of China's biggest real estate developers, China Vanke Co., announced its entry into the U.S. housing market -- a partnership with New York-based Tishman Speyer Properties to build luxury condos in San Francisco. What do developers from China -- and elsewhere -- see in the U.S. market, which has experienced considerable volatility? According to speakers at a Wharton real estate forum, produced in collaboration with Chinese real estate firm E-House, changing demographics, pent-up demand and limited supply suggest that more housing is needed in the U.S., and consumers are looking for new options in housing and lifestyle.
Published: May 14, 2013
What Real Estate Crash? Dubai's Towering Ambitions Return
In years past, Dubai made a name for itself by announcing projects that seemed to be concocted from sheer flights of fancy. But most vanished like desert mirages in 2009, when the Emirate's debt standstill announcement caused economic shockwaves worldwide. With its property market picking up, Dubai has once again rolled out a series of mega development projects. But those within the regional real estate industry say caution rules the mindset of everyone who survived the crash, and will temper project development and investor attitudes in the market.
Published: December 11, 2012
Wharton's Joseph Gyourko on Escaping China's 'Unsustainable' Property Boom Unscathed
Though China's housing market seems to have escaped the same fate as the market in the U.S., is it too soon to cheer? Yes and no, according to Joseph Gyourko, director of Wharton's Zell/Lurie Real Estate Center. Joined by Yongheng Deng, director of the Institute of Real Estate Studies at the National University of Singapore, and Jing Wu, a visiting research fellow at the institute, Gyourko has been dissecting the booming housing market in China's major cities and the range of factors fueling its rise. In a recent interview with China Knowledge@Wharton, Gyourko talked about why the country's property boom might not lead to a bust.
Published: September 13, 2011
Aiming to Bolster a Lagging Real Estate Market, Dubai Introduces Islamic REITs
Littering Dubai's property market are an estimated US$300 billion in stalled projects, but the sheikhdom still launched a Shariah-compliant real estate investment trust in November. Emirates REIT, jointly developed by Dubai Islamic Bank and Eiffel Management, a French REIT specialist, joins a number of Islamic REITs set up in Asia and the Middle East in recent months. Governments and Islamic financiers alike hope the new products will spur investment from Muslims and non-Muslims into their regional real estate sectors, which were hurt in the economic downturn.
Published: March 08, 2011
China's Property Bubble: Can It Be Deflated Safely, or Will It Burst?
China is likely in the midst of a real estate bubble, according to faculty from Wharton and the Guanghua School of Management, who spoke during a joint symposium held at Peking University in Beijing on March 10. "Clearly, in China there are cautionary signs," said Wharton real estate professor Susan M. Wachter, who also spoke about the fragility of the U.S. market and the need for a new regulatory approach. During his talk, Guanghua finance professor Xinzhong Xu noted, "The more difficult question that nobody can answer is: When is this bubble [in China] going to burst?"
Published: December 28, 2010
Surviving Dubai's Real Estate Crash: Discussing Failures, Coping Strategies, and Moving Forward
With billions of dollars worth of projects put on hold or cancelled since the global economic downturn began, and real estate prices in Dubai dropping by as much as 50%, the real estate market in the United Arab Emirates has clearly been in a slump. The city state is attempting to correct the issues that contributed to the real estate bubble, enacting laws that would reduce property speculation and, just recently, provide landlords the right to choose their own property management firms. But consumer confidence remains low. Stuck between ambivalent lenders and wary customers, those involved in real estate say they are reassessing their strategies to figure out how best to move forward.
Published: December 28, 2010
Arab Investors Join Latin America's Real Estate Fiesta
With markets in Europe and the U.S. still recovering from the global credit crisis, Gulf commercial real estate investors are turning to a new region: Latin America. From Mexico City to Rio, experts say the region is ripe for real estate investment, particularly in the area of high-end office space. But some say that while the going may be good today, political instability and other hurdles in some parts of Central and South America could deter investment in the long term.
Published: August 10, 2010
Surviving Dubai's Real Estate Crash: Discussing Failures, Coping Strategies, and Moving Forward
With billions of dollars worth of projects put on hold or cancelled since the global economic downturn began, and real estate prices in Dubai dropping by as much as 50%, the real estate market in the United Arab Emirates has clearly been in a slump. The city state is attempting to correct the issues that contributed to the real estate bubble, enacting laws that would reduce property speculation and, just recently, provide landlords the right to choose their own property management firms. But consumer confidence remains low. Stuck between ambivalent lenders and wary customers, those involved in real estate say they are reassessing their strategies to figure out how best to move forward.
Published: June 01, 2010
Drowning or Hedging? The Risks and Rewards of Owning a Home
Nearly 11 million homeowners who bought at the peak of the real estate market before the economic downturn, or who took cash out of their homes through readily available refinancing, are now feeling the pain of owing more than their properties are worth. That population -- roughly one-fifth of those who pay mortgages -- is big enough to make even the most cavalier consumer think twice before buying a home, especially when key pricing indexes are showing continuing weakness in markets across the country. According to the Case-Shiller 10-city composite house price index, real house prices dropped by more than 31% between the end of 2005 and the end of 2008. But potential home buyers' fears may not be entirely justified. While the change in housing values might discourage homeownership, new Wharton research suggests that owning a home is less risky than might be expected and can effectively hedge against volatile prices for shelter, including rental rates, if a buyer does not take on excessive debt to make the purchase
Published: April 20, 2010
Peter Linneman on Real Estate: The Storm Is Over, the Wreckage Remains
Although some upbeat economic news in recent weeks might indicate the beginning of the end of the recession, there's still plenty of "wreckage" to deal with, says Wharton real estate professor Peter D. Linneman. Nowhere is this more apparent than in the housing and commercial property sectors, which have taken one of their worst beatings ever. Linneman refutes the argument that the U. S. government should do more to prop up the weakest parts of the economy, like the troubled real estate industry. In an interview with Knowledge@Wharton, he also draws on policy missteps of the past to caution the Obama administration to tread carefully and avoid "trying to cure things they can't cure," while contending that the U. S. might have more in common with countries like Venezuela, Russia and Japan than most observers think.
Published: March 08, 2010
On Shaky Ground: Commercial Real Estate Faces Financial Tremors
As the global recession drags on, new concerns are rising about commercial real estate. Loans taken out during the boom years are coming due, but commercial property owners are contending with higher vacancy rates, lower rents and a less-than-receptive environment for refinancing their obligations. Industry analysts and politicians suggest that commercial real estate is about to become the next high-profile casualty in the ongoing economic meltdown. "The shoe has already dropped," says one Wharton real estate professor.
Published: February 01, 2010
