The National reported that the Emirates has emerged as one of the largest distressed asset markets in the world in the past year with cash rich buyers taking advantage of discounts of up to 40% on aeroplanes, yachts and high end cars.
Mr Noam Perski CEO of James List said that the UAE is the number one market for buying and selling these assets right now.
Expensive cars such as the Ferrari 430, targeted at first time sports car buyers have hit the market in the largest numbers. One such 430 in Dubai is selling for EUR 83,000 on James List, a significant discount from the EUR 123,000 asking price for a new one. Extremely rare luxury goods have been less affected because they are more in demand.
Mr Perski said that the kind of thing you go out and buy with your bonus were the first to hit the market. The UAE used to be an import market for cars, pulling inventory from all kinds of places. In the H2 2010, we saw them exporting for probably the first time.
Brokers said that Al Aweer Used Car Market has gained a reputation as the cheapest place in the world to buy luxury H2 cars. The once resplendent market for business jets has also been nursing its wounds since the global downturn began. In the boom years between 2004 and 2008, everything from the price of a business jet to the cost of chartering one reached record highs.
Mr Emad Sharghi the CEO of Executive Air Sales in Abu Dhabi said that has all changed. About 18% of the 3,300 strong global fleet of executive jets is for sale. And prices are down 15% to 40% from the peak 2 years ago. Anyone who needs an aircraft has another eight to 10 months for a window of opportunity to get a good valuation. It is difficult to know the total number of aeroplanes that Middle East owners are seeking to sell, because sales are often done discreetly and through brokers in Europe.
Mr Jens Dreyer a broker based in Frankfurt said that there are an estimated 400 executive jets in the Middle East, with 80% based in Saudi Arabia and the UAE. Only 10 executive jets from Middle East countries are known to be for sale in Europe.
(Sourced from The National)
