Luxury developer Berkeley bullish about resilience in high-end property market

Luxury property developer Berkeley Group has restated its profit forecast, despite the overall downbeat picture with the UK housing market.

Even though earlier this week, the Halifax house price index reported a 4.6 per cent annualised fall in home prices in August, Berkeley repeated its pre-tax profit guidance of £1.05 billion ($1.3 billion) for its 2024 and 2025 financial years.

Because it favours creating luxury and prime properties and tends to concentrate on London, Berkeley is considered to be in a better position to weather the storm currently blowing the wider UK housing market.

But given that the group reported a 35 per cent fall in private sales reservations between May and August, analysts say it is not totally immune to that tempest.

“Demand in the capital’s likely to remain more robust than other areas of the country, but in the short term, there’s plenty of stormy clouds for Berkeley to weather,” said Aarin Chiekrie, equity analyst at Hargreaves Lansdown.

Berkeley, which specialises in turning industrial sites into high-end property, did not acquire new land in the May-August period, preferring to concentrate on pipeline projects given the gloomy economic conditions

“Considerable uncertainty for the UK economy, with persistent high inflation and interest rates, continues to deter investment into brownfield regeneration and the wider house-building sector,” the company said in its trading statement.

Construction cranes in London. Although the luxury real estate market in London is resilient, even prime properties are subject to the gloom in the UK economy. Bloomberg

Forward sales

“The cash position remains strong which provides a potential buffer against a punishing background and a progressive dividend policy seems likely to be followed, even if the current yield of 3.2 per cent is pedestrian compared to some of its peers,” said Richard Hunter, head of markets at Interactive Investor.

“The group has also noted that build-cost inflation is at 'negligible' levels across the portfolio and that forward sales remain robust.”

Nonetheless, going forward Berkeley's sales projections illustrated that even at the luxury end, demand is being affected.

The group expects its forward sales by the end of October to be about £2 billion pounds, compared with £2.14 billion at the end of April.

Neil Thomson – THE BIO

Family: I am happily married to my wife Liz and we have two children together.

Favourite music: Rock music. I started at a young age due to my father’s influence. He played in an Indian rock band The Flintstones who were once asked by Apple Records to fly over to England to perform there.

Favourite book: I constantly find myself reading The Bible.

Favourite film: The Greatest Showman.

Favourite holiday destination: I love visiting Melbourne as I have family there and it’s a wonderful place. New York at Christmas is also magical.

Favourite food: I went to boarding school so I like any cuisine really.

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Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

if you go

The flights

Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.

The hotels

Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.

When to visit

March-May and September-November

Visas

Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.

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6.30pm: Al Maktoum Challenge Round-3 – Group 1 (PA) $65,000 (Dirt) 2,000m

7.05pm: Handicap (TB) $65,000 (Turf) 1,800m

7.40pm: Meydan Classic – Listed (TB) $88,000 (T) 1,600m

8.15pm: Nad Al Sheba Trophy – Group 3 (TB) $195,000 (T) 2,810m

8.50pm: Dubai Millennium Stakes – Group 3 (TB) $130,000 (T) 2,000m

9.25pm: Meydan Challenge – Listed Handicap (TB) $88,000 (T) 1,400m

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Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

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The six points:

1. Ministers should be in the field, instead of always at conferences

2. Foreign diplomacy must be left to the Ministry of Foreign Affairs and International Co-operation

3. Emiratisation is a top priority that will have a renewed push behind it

4. The UAE's economy must continue to thrive and grow

5. Complaints from the public must be addressed, not avoided

6. Have hope for the future, what is yet to come is bigger and better than before

COMPANY%20PROFILE

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NYBL PROFILE

Company name: Nybl

Date started: November 2018

Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono

Based: Dubai, UAE

Sector: Software Technology / Artificial Intelligence

Initial investment: $500,000

Funding round: Series B (raising $5m)

Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up

Going grey? A stylist's advice

If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”

Match info

Uefa Nations League Group B:

England v Spain, Saturday, 11.45pm (UAE)

Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.