Value Of Gulf RE Projects Under Way Is $2.39tr |
|
Share With Members!
The effects of the global financial crisis on the Middle East property sector have become prominent in the dawn of 2009, when the region started witnessing a decline in unit sales and a distinctively massive correction of prices for residential projects. Amidst all this, continuous activity within the region's real estate sector is still being monitored, as governments strengthen their efforts to soften the impact by ensuring liquidity and supporting major developments. With its repute as one of the top destinations for multibillion dollar luxury residential developments, the Middle East continues to play a role in the growth of the real estate market across the globe.
UAE
The UAE is among the regional economies hardest hit by the recession. According to REIDIN.com, the world's first and leading global online information services provider, the average rental price of a residential apartment within its central business district (Dubai and Downtown Dubai) in December 2008 goes to as high as USD 61.35 per sq. m., while sale rates are at 10,599.53 per sq. metre. January of 2009 marked the onset of a serious decline, recording an average of USD 46.01 in rental and USD 7,949.64 in sale rates. However, a review of the numbers from February to May 2009 revealed a steep drop, as monthly rental figures fell from USD 24 to USD 23 to USD 22 to USD 23 per sq. m., respectively. Sales rates have accordingly taken a downward shift, with prices from the same period (February to May) sliding to USD 5705 to USD 5478 to USD 5370 and USD 5453, respectively.
Despite the decreasing trend, experts are confident that the emergence of more realistic prices will attract investors and will result to a healthier market in the long run.
Projects under construction
According to a Future Brand Report on REIDIN.com the total value of real estate projects under construction in the GCC is more than USD 2.39 trillion. In Dubai alone, the government has spent about 33 per cent of its budget or USD 12 billion on infrastructure, with aims to cater to the emirate's rapidly growing population, which welcomes a total of 25,000 people per month or 33 people per hour.
GCC investments into UAE real estate
In 2008, the highest total GCC investment into Dubai came from the Saudi Arabian investors, who pumped over AED 2 billion into the market, followed by Kuwaiti investors, who have shelled out more than AED 1 billion reveals DUBAIFocus, a REIDIN.com product. Although a distant third, Omani investments into the Dubai real estate sector have topped AED 818 million, which is followed by Bahraini and Qatari investors, who have injected AED 615 million and AED 117 million respectively into the emirate's property market. Despite a projected slowdown on the UAE economy's growth from an expected 7.7 per cent in 2008 to 1.5 per cent in 2009, real estate investments are still continuously being funnelled from various GCC countries, which indicate strong consumer trust in the market.
Kuwait and Oman
Two of the region's most promising economies - Kuwait and Oman - have also been affected by the real estate slump sweeping the Middle East. According to market data by REIDIN.com, residential apartment rents in Kuwait's and Oman's CBDs (Kuwait City and Salmiya for Kuwait; Muscat and Ruwi for Oman), which averaged at USD 30 and USD 71.5 respectively in January 2009 are now down to USD 20 and USD 51 in February. In addition, sale rates in the same areas in February averaged at USD 2500 and USD 3820 correspondingly, down from USD 3170.50 and USD 4634.18 in January.
GCC retail property market
'RETAILFocus', a product that delivers an up-to-date database of malls, shopping centres, tenants, projects and retail real estate deals along with retail real estate news and research reports, reveals the GCC region's burgeoning retail property sector. Among the front runners are Saudi Arabia, which is home to 165 retail centres including local malls, multi-use commercial facilities and regional mall chains; and UAE, which currently has a total of 107 retail facilities.
The rest of the GCC economies are also growing in terms of retail property development. The 'Shopping Center Database' in 'RETAILFocus' reveals that Kuwait has 23 retail centres, Bahrain has 15, Oman has 16, and Qatar has nine, another four currently under construction.
-Ends-
© Press Release 2009
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Comment on this article 
Loading ...-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Loading ...Stories
Companies
| Company Name | Country | Industry |
| Consolidated Contractors Company | Overseas | Construction and Design |
| Zuhair Fayez Partnership Consultants | Saudi Arabia | Construction and Design |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Saudi Electricity Company | Saudi Arabia | Electric Utilities |
| Saudi Telecom | Saudi Arabia | Telecommunications Services |
| Barwa Real Estate Company | Qatar | Landlords and Developers |
| Abu Dhabi Oil Refining Company | UAE | Oil |
| Ministry of Health - Kuwait | Kuwait | Ministries and Municipalities |
| Ministry of Health - Saudi Arabia | Saudi Arabia | Ministries and Municipalities |
| Roads and Transport Authority - Dubai | UAE | Regulatory and Administrative Bodies |
Projects
| Project Name | Country | Sector |
| ENEC - Nuclear Power Plant | UAE | Power and Water |
| Abu Dhabi DOT - Abu Dhabi Metro | UAE | Infrastructure |
| Takreer - Ruwais Refinery Expansion | UAE | Oil and Gas |
| Aramco/Dow Chemical - Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| SATORP - Jubail Refinery and Petrochemical Complex | Saudi Arabia | Oil and Gas |
| Abu Dhabi Ports Company - Khalifa Port and Industrial Zone (KPIZ) | UAE | Infrastructure |
| Emirates Aluminium (EMAL) - Smelter Complex - Phase 1 | UAE | Industry |
| Dubai RTA - Dubai Metro | UAE | Infrastructure |
| ADNOC/ConocoPhillips - Sour Gas Fields Development - Shah Field | UAE | Oil and Gas |
| Dubai Racing Club - Meydan City - Meydan Racecourse | UAE | Real Estate |