Emaar Properties get First Investment Grade after Four Years

The latest sign and good news of the Dubai property market recovery is the investment grade rating received by Emaar properties for the first time in four years. Emaar Properties are the builders of world’s tallest towers. They received the lowest invest grade “BBB-” from Standard and Poor during the real estate bubble burst in December 2009. But now S&P has given a BB+. 

"The rating action reflects the sound performance of Emaar's high-quality, Dubai-based leasing and hospitality assets, which constitute a large share of total earnings," S&P said. "The upgrade also incorporates Emaar's successful launch and presale of new high-margin developments in Dubai."

In December 2013, Cluttons reported a significant growth in residential values in Emaars Burj Khalifah. According to Knight Frank, Dubai’sproperty market is vastly recovering and the world’s largest increase in homeprices are growing by 35 to 40 percent this year. Emaar's new rating followed property pre-sales, increase in recurring income and after the developer converted bonds valued at $475.7 million into shares, according to Bloomberg. Included in Emaar's $2.5 billion of debt outstanding, it has a $500 million Islamic bond due in August 2016.

5 things to learn before Investing in Real Estate

Investing in real estate can be exciting and a fabulous way to earn extra money without having to do much. However, like many other businesses real estate also needs a thorough understanding before getting started. Here are five things to learn about real estate before investing.

1- Trends in local market

Understand the current condition and trends in your market. You should know what are the present home prices and different marketing methods. Learn the strategies that work in your market because they will come handy when it’s time to list your property. Updating the real estate is also necessary to attract buyers. Also know whether open houses are a good idea in your area or not.

2- Interest Rates

Local and national interest rates are important when investing in real estate. They determine the buyers you attract and affect your marketing strategies. Its common sense that when interests rates are high buyers tend to hold out until the they go back down .A property sold during high interest rates sits on the market longer and affects  your overall profit.

3- Construction and Rehab

Updates made to a house are useful in increasing their value. You need know a little about building and rehabbing a real estate. Knowing about these different areas of construction will help you when it's time to choose a contractor, or if you're planning to do the work yourself.

4- Leasing and Flipping

Learning about real estate definitely includes leasing and flipping, so this is something you should become intimately familiar with.

5- Inspection

Understand the inspection process. Buyers request for certain updates before closing the deal. You should know what the buyers would ask for and get it upgraded before their arriving for inspection. This can help you save thousands of dollars in the deal or make a huge difference between selling a property and losing a customer.