Strong growth

zoom

Ali Al Rahma, CEO of property firm Eqarat.com, on establishing the company in the Middle East and beyond.

How long have you been operating in the region?

Eqarat.com's foray into the regional market started in 1991. Since then, we have grown exponentially as one of the leading total solutions providers in real estate sector, not only in the regional level but globally as well.

What is your unique service offering to the many investors looking to buy in the region?

Our value added services include:

Research and Publication

Eqarat.com produces a wide range of research publications, both online and offline, which analyse local and regional real estate markets and monitor significant economic policies, laws and trends that affect the movement of the property sector.

We also maintain databases on each property category, which provide clients with accurate information on variables such as supply, demand, rental levels, yields and property trends within the major parts of the Middle East region.

Property Development Consultancy

Eqarat.com offers investors the opportunity to adopt a more structured and research-based approach to their development processes through a wide array of processed information and the power of our state-of-the-art technologies.

We are fully equipped to develop feasibility studies that cover the conceptual stage of developments, which can provide valuable inputs to guide investors in deciding upon the most profitable investment options for them.

This includes building type, layout, specification, finishes and methods used to maximize rental returns, and detailed financial models, which can be produced to assess investment returns and cash flow statements giving ROI, yield and payback details.

Do you deal exclusively with Islamic services?

No, we do not deal exclusively with Islamic services as we see this as limiting our objectives and goals. We believe that the UAE and the regional markets are integral contributors to the growth of the international market, and this is why we are taking a global approach to doing our business.

You have recently expanded your operations in the Gulf significantly and swiftly. Why do you think now is the right time for aggressive growth?

There are several factors that are driving the growth of the real estate sector in the Gulf, which are also propelling us to strengthen our presence in the region. For one, the increased availability and attractiveness of projects being offered by developers has drawn in greater interest and investment towards the sector.

The increase in the number of corporations and individuals entering the Gulf looking for office and residential space has also contributed significantly to the higher demand.

Other factors driving the growth of the market include the high Return on Investment being generated by real estate investments, which have attracted a larger percentage of investors towards the market; the enactment of regulations to promote greater transparency; and the protection of the interests of both investors and developers.

Do you plan to expand your Middle East operations further?

Absolutely. At present, our plans include growing our operations in Saudi Arabia, Morocco, India and the UK.

Do you think the market has reached saturation?

Recent industry reports indicate that Dubai's commercial property sector is witnessing a continuous increase in demand, with more than 24 million square feet of commercial space being developed at present to accommodate the expansion of new and existing international and domestic companies.

Further, the completion of the aforementioned office spaces will exceed the already existing corporate developments by more than 50 per cent. On the other hand, commercial office rent is expected to remain high throughout 2007 and 2008, with Dubai office rentals showing a 55 per cent increase over the past year.

This is the case as well in the GCC, where countries as Oman, Jordan and Kuwait witnessing substantial growth in commercial and residential demand and supply. We believe that this boom in the real estate sector will continue for many years to come, and we are gearing up to serve the market better.

How much do you expect it to grow?

With the UAE expecting to attract 11.2 million tourists by 2010, Dubai has taken strides to address the demand for hotels. Currently, Dubai is witnessing rapid expansion in the number of hotels and hotel apartments, which is expected to cross 93,867 units by 2016, while Abu Dhabi announced its plans to catch on the rising demand for new hotel rooms, which was estimated at 17,000 to 20,000.

Do you find that the majority of your clients are buying to let or are people beginning to settle here?

For the past years, we have seen that the majority of buyers are either speculators or long term investors who are buying to rent. However, reselling properties are active among the agents. In the beginning of 2008, we have been anticipating the local market to start its shift towards end users as the price of the commercial and residential units started to escalate.

Do you have any words of advice for those looking to invest in the region?

Investing in the region is still considered one of the most profitable investment options in the world in terms of IIR and investment security, as the investment cycle in the region will need another five to seven years before it reaches the settlement level.

In my point of view, it is the perfect time for investors to consider investing as the real-estate opportunities in the region continue to soar.

As prices continue to rise, is there any danger that some demographics will be priced out of the market?

We can expect the price of properties to go up as the demand is also continuously increasing. From a developer's point of view, the price of the unit is not only the factor, which can put the buyer off, as today's buyers and investors are more discerning.

On the other hand, many developers are also turning into offering projects that are moderately priced to cater to a wider segment of the middle class customers.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM