Qatar Real Estate News
2010 hoped to be a smooth year for construction sector
The year 2010 will be a flat one, as far as the construction sector is concerned, said experts, who spoke during the Big5 conferences.
The construction companies need to be more realistic and re-consider their expansion plans, unless going to new markets and restructure debt, said Ziad Makhzoumi, Arabic Holding CFO.
Today the construction sector is facing issues such as limited access to funds, reduced liquidity, extended cycles, higher risks on balance sheets, more market volatility and lack of timely payment of salaries, pointed out Makhzoumi.
The come year holds few consolidation and governmental intervention. Re-considering one’s pricing strategy is not about offering discounts. Rather, it is the issue of having set payment terms to help the project and client. Therefore next year is not an easy one for the industry,” Makzoumi added.
Growth could be expected in certain sectors, with more three and two star hotels and affordable housing being built. Although no one can predict the future, Dubai is a new economy and so is the UAE and this is part of the learning process. Forecasting models may not work anymore and new economies are on the rise, he said.
According to industry estimate, construction projects in the UAE are likely to see a cash-flow of $47.65bn in 2010. The focus now should be in reducing speculation, and these can be done even after having factored in the inflation during the past three years, said Simon Azam, Chief Executive Officer, Canterra.
According to Azam, most of the turmoil faced by UAE property market was due to the presence of unqualified brokers in the business.
However, it is now appreciable that RERA is permitting only those with requisite qualifications to become a broker, he pointed out.
Posted on 2/12/2009
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