Connect with us

Real eState

Saudi Real Estate Refinance Co aims to raise around $800 mln via domestic sukuk – CEO – Reuters

Published

 on


DUBAI, Sept 6 (Reuters) – Saudi Real Estate Refinance Co (SRC), the Saudi equivalent of U.S. mortgage finance business Fannie Mae, will soon issue around 3 billion riyals ($798.34 million) in local currency sukuk, or Islamic bonds, its chief executive said on Tuesday.

HSBC (HSBA.L), Bank AlJazira (1020.SE), Al Rajhi (1120.SE), Riyad Capital (1010.SE) and SNB Capital (1180.SE) are running the debt sale, which is expected as soon as next week, CEO Fabrice Susini told Reuters in an interview.

The company is in discussions with local banks to refinance real estate financing portfolios and the sukuk sale is in anticipation of closing those deals, Susini said.

“We have a couple of transactions coming in the pipeline in the coming weeks, so we anticipate the purchase and want to have the liquidity ready to be deployed,” he said.

The issuance will be the first since SRC received regulatory approval to double its domestic issuance programme to 20 billion riyals from 10 billion riyals.

SRC’s balance sheet doubled between 2020 and 2021 and is expected to roughly double again this year from last year, Susini said.

Rising interest rates slowed mortgage lending in Saudi Arabia in April and May, though the rate of growth picked up again in June and July. Research showed banks’ mortgage exposure increased by 30% in the second quarter compared with 60% growth in the first quarter, Susini said.

“My feeling is, on the one hand, you can’t dismiss that if the rates are increasing – which is the case – you will see probably a slowdown in the mortgage origination. And therefore the numbers we saw in June, July are possibly an indication of a blip, but it’s not necessarily a long trend (if rates continue to rise).”

Macroeconomic conditions like high oil prices, strong GDP growth, job growth and government subsidies are supportive of the market, but growth in mortgage lending could slow further depending on the magnitude of interest rate increases and whether those macroeconomic conditions change, Susini said.

He said a large number of mortgages already originated were fixed-rate. “That will insulate the borrowers and that should limit the impact of the rate increase on the repayment capability of the borrowers.”

SRC, which is owned by the country’s sovereign wealth fund PIF, is aiming to issue its long-planned debut dollar-denominated sukuk in the second quarter of next year, Susini said. JPMorgan (JPM.N), HSBC and Societe Generale (SOGN.PA) are setting up the issuance programme for that debt sale, he said. read more

($1 = 3.7578 riyals)

Reporting by Yousef Saba. Editing by Jane Merriman

Our Standards: The Thomson Reuters Trust Principles.

Adblock test (Why?)



Source link

Continue Reading

Real eState

Real estate markets slow in most nearby communities – Calgary Herald

Published

 on


Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.

Article content

Slowing demand and rising supply in outlying communities like Airdrie have set in along with cooler temperatures of late summer, recent data shows.

Article content

Calgary Real Estate Board statistics from last month show sales falling year over year in most communities while supply is rising.

Article content

“In all those markets, we’ve seen improvements in inventory,” says Ann-Marie Lurie, chief economist with CREB.
“Still these markets remain quite tight, but we are seeing some price adjustments and that’s because they came up so high during the pandemic.”

Airdrie is the largest and most in-demand market with the highest sales last month, 169 transactions, down almost eight per cent year over year. Still, the community saw inventory rise more than 10 per cent with now more than 1.69 months of supply, an increase of nearly 20 per cent from last year.

Other communities have also seen sales fall and supply rise. These include Cochrane, which had 75 sales, down about 17 per cent from August last year. Its supply is now more than two months, up about 26 per cent year over year.
Okotoks had 53 sales in August, down about 19 per cent year over year while supply grew to more than 1.8 months.

Despite falling demand and growing supply, prices still grew year over year in these communities. The benchmark price in Airdrie increased almost 19 per cent to $493,500. In Cochrane, the benchmark price grew by more than 16 per cent to $517,400 while the benchmark reached $549,300 in Okotoks, also an increase of more than 16 per cent.

Chestermere saw the biggest drop in sales year over year at more than 48 per cent.

Only High River experienced a slight increase in activity with sales last month up 2.5 per cent versus the same span last year.

Adblock test (Why?)



Source link

Continue Reading

Real eState

Spotlight: Making sense of the current real estate market in Newmarket – NewmarketToday.ca

Published

 on


Buying a home at any time is a huge undertaking. It requires a lot of preparation, time and access to expertise.

Homeowners—and those who wish to become one for the first time—have it even harder right now, with conditions seeming to change from month to month.

REALTOR® Dave Starr specializes in home buying and selling in Newmarket and the surrounding areas. With over 35 years of experience in the real estate industry, he is happy to share what he’s learned with others.

Slowing things down

So how would he describe the current state of the market in Newmarket? “It’s finally more normal and realistic,” he says. “A prospective buyer has a little more breathing room to make sure that their financing is in place and they can also consider a home inspection.”

A seller will benefit by working with a more seasoned agent, he says, because they have had prior experience with similar markets. He likens the situation to a professional athlete who has played in the playoffs before or competed in a large-scale event like the Masters in golf.

Earlier in the year, the market was not realistic.

That tended to leave buyers, sellers and agents scrambling. “The end result can be a situation with buyer’s remorse, where the buyer no longer wants to close on their purchase. The banks sometimes struggle with appraisals, which can also result in a non-closure,” he says. “In the fast-paced market that took place earlier, some agents potentially made more mistakes, especially since they weren’t experienced enough to handle multiple offers.”

Home inspections and interest rates

While some homes may not require a home inspection, there are lots that definitely need one. “In an extremely busy market, buyers could potentially end up with an unwanted surprise—at a great expense,” says the REALTOR®.

He likens it to the necessity of having speed limits on our roadways. The faster you go, the more chances you have of getting into an accident.

“We are now facing an increased mortgage rate, which many would not like to see, but the truth is it will help balance the market overall. Lower interest rates basically were one of the reasons for the inflated house prices and homeowners were simply taking on larger mortgages than ever,” he says.

For years many homeowners would tell him the same thing: that mortgage money was cheap to them. His answer to that never varied: “You do know you have to pay it back at some point.” If the rate were guaranteed for a lifetime, it would be a different story, but of course that’s not the way it works.

The market over the summer was slower but typical; that has become the norm over the past few years.

The fall market is already starting to pick up, with increased activity, though the number of listings in Newmarket is quite low. Rental availability is both quite expensive and experiencing a shortage.

Says Starr, “The market moving forward should remain stable. Buyers and sellers will have more time to make the best educated decision for their needs and wants.”

Whether you’re a buyer or a seller, he welcomes any calls or emails.

Let Dave Starr Real Estate help you make your next move. Call 416-520-3231 and get the Starr treatment you deserve.

Adblock test (Why?)



Source link

Continue Reading

Real eState

Commercial Real Estate Sector Faces Risks as Financial Conditions Tighten – International Monetary Fund

Published

 on


[unable to retrieve full-text content]

Commercial Real Estate Sector Faces Risks as Financial Conditions Tighten  International Monetary Fund



Source link

Continue Reading

Trending