These days, the word Baghdad conjures up ugly pictures in most Americans' minds: War. Terrorism. Heat. Desert. Bombings. Real estate.Excuse me? Did you say real estate? Coverage within the past month about Baghdad’s real estate market–a result of Iraqis' mass exodus from the city–has investors worldwide buzzing. Rents and home prices dropped significantly as Iraqis fled the city in search of more stable living conditions. 
With supply declining, Iraqis are stuck between a rock and a hard place, many searching for homes that simply do not exist. In the face of over 46,000 Iraqis returning to Baghdad from places like Syria, demand is high and supply is null.What does this mean for U.S. investors?Some may argue nothing and say that investors willing to risk buying in such a volatile market may as well invest in San Diego, or Seattle, for that matter, and call it good. The market contains everything from small homes which sell quickly, often after bidding wars, to larger multi-million dollar homes. Others say Baghdad's real estate market is significant. Rising population and real estate prices in any city equal more development, more development means more jobs and more jobs mean…well, you get the point.But why the sudden interest in real estate in this war-torn city?Many of the larger homes have inflated prices because buyers, who have made money off government contracts, corruption and looting, are willing to pay 10 to 15 percent more than the home's value.Some homes are dropping in value–owners desperate to unload properties in less-than-safe neighborhoods. Those homes sell, too–and fast. Both factors are resulting in serious opportunities for investors willing to take the risk.As an investor, would you consider Baghdad? I’m quick to say no–but stopping to think twice.Labels: economics, international, investments, real estate
I’ve been lucky in the past few years of my life to travel the world. The places I’ve seen, the people I’ve met, and the experiences I've lived all hold a very special place in my life.
I’ve also been lucky enough to spend several years studying French. So, I guess you could say that I am interested in (nay, obsessed with) any proposed perversion of their culture.
Buti Saeed al-Ghandi, a developer with head of Emivest, an investment and development group in Dubai has just returned from a romantic getaway to Lyon, France with his wife. Imagine his memories! The streets, the food, the culture, the…romance. He was sold. He also had an idea: to plant a mini-Lyon inside of Dubai – complete with designs inspired by architecture in modern-day Lyon.
Why does this matter to you?
He has just signed a memorandum of understanding with Lyon’s mayor, Gérard Collomb, and anticipates sealing the deal on his next visit to the city.
I know, right? “Choc! Horreur! Quelle parodie!” Screams my inner Francophile.
Ghandi’s plans include a university, museums, restaurants, shops, pedestrian streets, courtyards, and a town square – all replicating Lyon. His time spent inside the 19th century Notre-Dame de Fourvière Basilica may even inspire a church – yes, a church – right next to a mosque.
This can’t be so bad, I tell myself. I read on:
Location is still up in the air – discussion has involved placing the ‘little Lyon’ on upwards of 1000 acres of land. Potential spots include an urban area by the tallest building in the world, the Burj Dubai Tower; a plot of desert land close to the second international airport, which has not been built yet; and "Dubailand," which is a $10 billion complex including theme parks and entertainment that is currently still under construction.
Any way you toss it, this project is ambitious, at best. And also? A total perversion of French culture. It’s like calling ‘Paris’ in Vegas … well, Paris. The manager of the project insists, however, that it’ll be a far cry from anything Vegas or Disneyland.
What about atmosphere? How does one create a street comfortable enough to stroll down in the middle of the desert heat? I fight visions of massive fans. Somehow I keep thinking about the movie ‘Bio-Dome’ with Pauly Shore.
Naturally, my instinct is to worry first about the wine, and then of course, the food. French culture is known for not only their love of cured meats and delectable cheeses, but their wine, most of all! Muslim countries ban not only meat, but all forms of alcohol. Dubai is a modern city, however, an international hub, even – and tends to be more lenient about those rules. I am still skeptical. I think they still allow cheese.
In any event, my logic has kicked in. What does this mean for the commerce in the city? What does this mean for investors? Particularly investors interested in saturated (yet successful) international markets like Dubai? What it means is a potential boost in the economy of this emirate – and fast. Things are looking up, perhaps.
This project, if it breaks land, will attempt to bring not only the charm, but also the economic successes of Lyon to Dubai. Lyon is currently one of the world’s most popular (top 30) convention sites. Readers Digest named the city the 7th most livable in the world last year. It is for good reason that Ghandi would like to replicate it.
Any way you flip it, this project is interesting. Skeptics are concerned about any attempts to recreate French culture in the middle of the desert – and rightly so. I recall from my days in art history class learning that Lyon was second only to Venice in its light origin – some of the world’s most important pieces of art were painted there. How can that same light be recreated in the middle of the desert?
Again, I digress.
Clearly this project represents great opportunity for investors interested in overseas markets. It also represents great opportunity for further economic development in (the seemingly few) areas of Dubai that are suffering.
My inner Francophile is still screaming.
Labels: development, international, investments, real estate
With supply declining, Iraqis are stuck between a rock and a hard place, many searching for homes that simply do not exist. In the face of over 46,000 Iraqis returning to Baghdad from places like Syria, demand is high and supply is null.
