valuations aligned with fundamentals

English translation: Real estate values in line with real estate basics

18:52 Jul 27, 2009
English language (monolingual) [PRO]
Bus/Financial - Finance (general)
English term or phrase: valuations aligned with fundamentals
Local real estate and equity prices in the GCC had already begun to correct in the summer of 2008, and that correction accelerated with the intensification of the global financial crisis in September 2008. Dubai, where valuations were not aligned with fundamentals, was particularly affected.
Abdelmonem Samir
Local time: 11:21
Selected answer:Real estate values in line with real estate basics
Explanation:
In the late '80's I spent a number of years in the commercial real estate field, which is why I am giving this a try. The term valuations is probably not why you are asking this question, since it quite clearly relates to the first sentence "corrections (price adjustments) of local real estate and equity prices."

Fundamentals [of real estate] refer to basic "truths" that apply in that field. One of these truths is, as it relates to your situation, that when the global economy declines, real estate values do the same. It appears that this does not apply in the country of Dubai, possibly because there real estate values are (or were) never tied to its economy.
Selected response from:

Peter Moor
United States
Local time: 04:21
Grading comment
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
4Real estate values in line with real estate basics
Peter Moor
4valuations reflecting fundamental market factors, valuations falling in line with...
Jenni Lukac (X)


  

Answers


28 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
Real estate values in line with real estate basics


Explanation:
In the late '80's I spent a number of years in the commercial real estate field, which is why I am giving this a try. The term valuations is probably not why you are asking this question, since it quite clearly relates to the first sentence "corrections (price adjustments) of local real estate and equity prices."

Fundamentals [of real estate] refer to basic "truths" that apply in that field. One of these truths is, as it relates to your situation, that when the global economy declines, real estate values do the same. It appears that this does not apply in the country of Dubai, possibly because there real estate values are (or were) never tied to its economy.

Peter Moor
United States
Local time: 04:21
Works in field
Native speaker of: Native in DutchDutch, Native in EnglishEnglish
PRO pts in category: 4
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12 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
valuations reflecting fundamental market factors, valuations falling in line with...


Explanation:
I would suggest keeping "fundamental" (but adding "factors" for clarity) and using "reflect" instead of "align". For "Dubai, where valuations were not aligned with fundamentals, was particularly affected", you could write "Dubai, where valuations had not reflected fundamental market factors, was particularly affected." If you believe that it would be clear to the reader, "had not fallen in line with" could be substituted for "aligned". "Did not reflect fair market values" could be substituted for "were not aligned with fundamentals", but the idea of criterion for determining fair market values would be lost.
Second example noted here can be found in: http://www.boston.com/realestate/news/blogs/renow/2009/04/ha...
http://books.google.es/books?id=pSSZgi4tr1kC&pg=PA869&lpg=PA...

FYI, http://www.nuwireinvestor.com/articles/todd-millar-part-2-51... notes that the fundamental factors for real estate valuation are: "an area's economy, population, real estate cycle, political leadership and transportation improvements".

Example sentence(s):
  • allowing real estate prices to fall in line with incomes
  • Forced or distress sales do not ordinarily reflect fair market value

    Reference: http://www.llinlithgow.com/bizzX/2008/06/boys_wolves_broken_...
Jenni Lukac (X)
Local time: 10:21
Native speaker of: English
PRO pts in category: 8
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