Interview: Property market resilient - in places
In an exclusive interview with Noozz, Middle East property guru Don Bradley reveals which real estate markets in the region are vulnerable to the knock-on effects of the global financial and which are likely to prove resilient. Bradley has 26 years experience of property consultancy in the Middle East and was chief executive of Cluttons in the Middle East prior to becoming chief executive for the region at Knight Frank, a property consultancy with 165 offices around the world.
The impact of the global financial crisis is now starting to affect the region’s property sector. But the impact will be sporadic and unevenly felt, with some locations facing a potentially severe impact and others getting off relatively Scot-free.
Amlak sees mortgage finance nearly tripling in Egypt
Dubai-based lender Amlak expects to nearly triple its mortgage finance portfolio in Egypt by the end of 2009 as demand surges for housing in the most populous Arab country, an executive said. Amlak started lending in Egypt in November 2007 to diversify from its home market and now has a portfolio of about E£380 million (US$68 million), Ahmed Haggag, Chief Executive of Amlak in Egypt.
Dubai's Jumeirah plans 20 Asia-Pacific hotels
Dubai hotelier Jumeirah Group is pressing ahead with plans to add at least 20 hotels in Asia-Pacific in the next four years, despite a looming tourism slump induced by the global financial crisis. Executive chairman Gerald Lawless said China and India would be the growth drivers, accounting for the bulk of the group's 60-hotel portfolio by 2012. Jumeirah, which counts Mandarin Oriental Hotel Group and Four Seasons Hotels and Resorts as rivals, aimed to open hotels in major gateway cities in the region such as Beijing, Hangzhou, Hong Kong, Macau and Bangkok, Mr Lawless said.
Rakia plans US$5bn India development
The investment arm of Ras Al Khaimah plans a US$5 billion business centre at Hyderabad in southern India as it looks to expand its investments abroad. Ras Al Khaimah Investment Authority (Rakia), which manages funds of the emirate, said it had signed an initial agreement with Andhra Pradesh Industrial Infrastructure Corporation to set up Hyderabad Economic City, which will offer financial and healthcare services.
Manara set to launch US$1bn Manama project
Manara Developments, a recently-launched Bahraini real estate development company, is gearing up to launch its (BD 378 million) US$1 billion flagship development project, Nurana. The project, located to the North West of the Bahrain Fort and spread across 2 million sq metres of reclaimed land, is set to create a vibrant and sustainable community inspired by the unique historical, geographical and cultural characteristics of its surrounding location.
News Analysis: Sentiment supports ME real estate
During the boom times, property professionals like to say that the real estate market is only really about three things: ‘location, location and location’. But once the boom ends, they are forced to admit the existence of a fourth: sentiment.
While prices are rising, the argument is that the market forces of demand and supply are driving prices inexorably higher. But once demand peaks and prices start to plummet, as they have in many of the developed world’s property markets, market forces have less impact than market sentiment. As long as investors and potential buyers believe prices may continue to fall, they stay away. This creates a vicious spiral that depresses prices further and continues to create a negative influence on sentiment.
ACC bags SR2 billion Lamar Towers contract
Arabian Construction Company (ACC), a leading construction company based in Lebanon and operating in Saudi Arabia, UAE, Qatar, Egypt, and Syria, has been awarded a SR2 billion contract to build Lamar Towers in Jeddah by Cayan, a regional player with a presence in Jeddah, Riyadh, Dubai and Cairo.
Commenting on the contract, Cayan Chairman Ahmed Alhatti, said: “Cayan is working very hard to ensure appointing only the very best companies for its projects. ACC is known for its experience in high-rise projects and skyscrapers; thus, awarding the contract for ACC will ensure that Lamar will be completed by a professional construction team that will not only deliver on time but also hand over a finished product that exceeds our clients’ expectations.”
Al Maabar unveils US$10bn-Baghdad project
Al Maabar International Investments is launching a new mega project in Baghdad that will cost almost US$10 billion. The new project is located within the Al Rashid Military Complex and stretches over a surface area of 1250 hectares. The project joins several main compounds including residential units, a commercial district, a technology centre, a hotel and a hospitality area, in addition to healthcare and education facilities, gas fuelling stations and other amenities.
Saudi prince to build world's tallest building
Saudi Prince Al-Waleed bin Talal says he will build the world's tallest building in the Saudi city of Jeddah. The statement by his firm, Kingdom Holding Company, says the building will be more than a kilometre (3,281 feet) high and will be part of a larger project that will cost 100 billion Saudi riyals (US$26.7 billion). The project, called Kingdom City, will span 23 million square metres (248 million square feet) and will include luxury homes, hotels and offices.