Qatar Real Estate News
Gulf property sector likely to suffer
With the worsening financing conditions for real estate projects, few major projects may come to a halt in the Gulf Arab region, said a leading banker, also the Group Head of Dubai Islamic Bank, Khaled al-Kamda.
The real estate sector is likely to suffer, and big property projects will be given a second thought, as the viability of these projects will need to be revisited, he said when speaking during a conference.
These comments from Kamda are one of the harsh reminders about the credit crisis sweeping the Europe and the US, which will not leave the Arab peninsula unharmed, despite several billion dollars of petrodollar inflows and strong economic growth.
According to experts, the pace of growth in the Gulf may decline, but the property market will continue to remain robust, as the energy exporting economies invest windfalls from oil and gas exports in infrastructure and property developments.
However, stringent conditions on the international credit markets may leave an impact on the Gulf financial sector, leading to the biggest central banks in the region to launch emergency measures to offer guarantee deposits and bank funding.
“With such tightening credit, the developer may have to revisit the fundamentals of the projects. The UAE requires Dh.50bn for real estate projects in 2009,” Kamda said.
This does not imply the death of strong developers, but, a wave of consolidation is likely among developers, which is normal under such circumstances.
Other than in boomtown Dubai, where speculative inflows helped to drive the building boom, there are several regions, where growth is based on real demand. Saudi Arabia has recorded a shortage of 400,000 housing units and require another 165,000 new units each year, growing at 3.5 percent to keep pace with demand, said Abdulaziz al Duailei, Executive President, Saudi-based Al Oula Development Company.
Dubai Islamic Bank is one of the premium lenders in the Gulf and is a key player in major developments in the UAE.
Social Bookmarking
Read more news
> Al Khor project progressing as scheduled
> Barwa reveals its expansion strategy in Qatar
> MAF Group makes its maiden venture into Qatar realty market
> Venice of Qatar developed on Pearl-Qatar Island
> Qatar realty sector continue to remain promising
> Barwa announces latest updates of Barwa Housing Program
> Land owners should produce original tenancy agreement before renting
> Property prices, rents fall in Doha suburbs
> Bahrain, Kuwait joint-venture Company to develop new residential project in Qatar
> Registrar of Properties in Doha to begin operations next month