JLL and Colliers International

[Christopher Adkins]

Hi BP team,

I am living and investing in the United Arab Emirates. It is a little oil rich country in the Middle East. We have had quarterly yields that are approaching mind boggling numbers across multiple sectors. About 12 months ago the leadership in this country, especially in my city, Abu Dhabi, removed the lease cap that was set at 5% a year. As you would expect greedy landlords have started to over value property and there have been some major demographic shifts. My family included. 

We are using Jones Lang Lasalle Research for Abu Dhabi  http://wwfow.jll-mena.com/mena/en-gb/research

and Colliers International Research for Dubai http://www.colliers.com/en-gb/unitedarabemirates

Both of these firms are from the United States originally. Both of them are used by the local financial institutions to set price indexes for mortgages. For example if you are in Dubai and want to borrow money for a home or business, the bank will pull out the Colliers Index Chart to see if the property that you are considering is within their index. 

My question to those back home is, what matrix or index are you using to valuate property? Or do you always allow an appraiser to give you a good market price?

Thanks,

Chris