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Prices in Bangalore Real Estate Market in 2009

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					Qatar’s Transformation – The Property
         Opportunities
Perspective




2 June 2009
From US Credit Crunch to Global Economic Crisis




                                                  2
Economic Crisis Synopsis

        IMMEDIATE IMPACT                       LONG TERM IMPLICATIONS

 Fluctuation in commodity prices            Shift from Mature to Emerging
 Fears of a significant global recession     markets
 Nationalization of Banks                   Stronger emerging market giants from
 Consumer confidence affected                the Middle East and BRIC countries
 Stock markets are taking a plunge          Increasing role for Gulf states on
                                              global stage
 Investor pessimism
                                             Opportunity for emerging countries to
 Sharp increase in corporate defaults        enter new markets and geographies
 Weakening of the traditional western       Move to polarized global economy
  corporate leaders




                                                                                  3
   Impact of Financial Crisis on Real Estate Markets
                                    Pre-Crisis   Post-Crisis
Robust Demand

Rents Rising

Increasingly International Market

Cheap & Plentiful Debt

More Buyers than Sellers

Cap Rates Falling

Prime = Secondary

Traded Volumes High


                                                               4
Middle East Less Impacted




                            Source: IMF, Word Economic Outlook, March 2009


                                                                    5
      Stages in Market Maturity


                                                                                  Transparency




                                                                                Required Returns
                                                                                 (Hurdle Rates)

                                                                                 Market Volatility
Catalyst                                                                     Time

              Growth              Maturing                   Core

      Cairo     Doha      Dubai   Moscow                 London
     Muscat   Abu Dhabi           Shanghai              New York
                                             Source: Jones Lang LaSalle – World Winning Cities 2008


                                                                                             6
MENA Transparency

Highly Transparent
 Tier 1

Transparent
 Tier 2

Semi-Transparent                 Dubai
                                Bahrain
 Tier 3                        Abu Dhabi

Low-Transparent       Saudi Arabia, Morocco, Egypt
                          Oman, Qatar, Kuwait
 Tier 4              Pakistan, UAE (Other Emirates)

Opaque
                          Sudan, Algeria, Syria
 Tier 5

                                                      7
      Investor Sentiment – Global

                                              Middle East still seen as strongest
                                               performing market globally (36%) although
                                               this has fallen from 56% back in September

                                              Asia Pacific is seen as second strongest -
                                               increased from 20% since last survey


                                              Improvement in expected performance in
                                               North America from 5% since last survey


                                              Improvement in expected performance in
                                               Western Europe from 2% since last survey

Source: Jones Lang LaSalle ISS, March 2009


                                                                                            8
      Investor Sentiment - MENA

                                             Saudi Arabia offers strong potential –
                                             large and rapidly growing market
                                             continues to open up and offer new
                                             opportunities
                                             Qatar expected to offer strong
                                             performance building upon its reputation
                                             as the next emerging GCC real estate
                                             market and its gas wealth
                                             Investors still remain bullish towards the
                                             UAE, especially Abu Dhabi




Source: Jones Lang LaSalle ISS, March 2009


                                                                                      9
Key Strengths of Qatar
 1       Growing population

 2       Opportunity for infrastructure led investment

 3       Strong government support

 4       Highest GDP per capita in the world

 5
 3       Ample off-balance sheet income to support growth

 4
 6       Gas based economy (less fluctuating prices)

 3
 7       Regional influence

 4

                                                            10
Qatar – World’s Highest GDP

                           Domestic and regional infrastructure
                            investment
                           Securing the future through an active
                            global agenda




                                                Source: IMF November 2008


                                                                     11
Growth Estimates (2009)




 Source: Various


                          12
    Requirements to Recovery
                                              Dec 2008   May 2009                                     Dec 2008 May 2009
Macro Economic                                                      Real Estate
Global economic stability                                           Increased occupier demand
Recovery in oil prices                                              Reduction of Future supply
                                                                    pipeline
Stability in employment levels                                      Stabilisation of pricing levels
Financial / Liquidity                                               Increasing transaction levels
Decline in cost of capital (interest rates)                         Consolidation of real estate
                                                                    participants
Recovery in equity markets                                          Implementation of new
                                                                    investment paradigm
Recapitalization of banking sector                                  Supporting Factors
Increased funding available to real                                 Recovery in tourism
estate sector
                                                                    Improved brand perception
        Required                                                    Improvement in corporate
        Underway                                                    governance
        Achieved                                                    Concerted government action
                                                                                                       Source: Jones Lang LaSalle
                                                                                                                              13
Emerging World Winning Cities



                                                              Moscow
                                      Prague         Warsaw
                                      Budapest
                                                                                                     Beijing


                                                          Doha                     Delhi
   Mexico City                                                                                         Shanghai
                                                        Abu Dhabi
                                                                       Mumbai
                                                                                                  Bangkok
                                                                       Bangalore

                                                                                   Kuala Lumpur




                          Sao Paulo   Johannesburg
                       Buenos Aires

            Santiago



                                                                       Source: Jones Lang LaSalle World Winning Cities, 2009


                                                                                                                       14
Doha: A Destination in the Making
                       1.   Performance
                       2.   Planning
                       3.   Population
                       4.   Place Making
                       5.   Power
                       6.   People
                       7.   Purity
                       8.   Process
                       9.   Property
                       10. Physical


                                       Source: Jones Lang LaSalle World Winning Cities, 2009


                                                                                       15
                                Thank You
Avik Rakhit
Head of Northern Gulf
Jones Lang LaSalle

avik.rakhit@jll.com
www.joneslanglasalle-mena.com

				
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