Crunch time

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Ben Corrigan, Bluehaus.

Regional design firms are starting to feel the impact of the global economic slowdown – but the news isn’t all bad, they say.

Recent weeks have seen the first whisperings of the odd project put on hold - a sign that the global financial crisis is having a knock-on effect on the regional design industry.

"I don't know whether that is because the financial crisis is actually creeping in or whether it is because everyone is just being very, very cautious. We met with a developer recently who said ‘we believe our customers are still there, we're just having to work harder to get them to spend money'. I think it's the same with us," said Ben Corrigan, senior design manager and partner, Bluehaus.

"We don't necessarily think everything is going to get cancelled, or come to a grinding halt, it will just be little bit more of a battle with the other people to get the projects," said Dougall Harvison, general manager, Bluehaus.

The general consensus amongst regional developers is that any slowdown will be short-lived, with a complete recovery anticipated as early as February or March next year. "Yes, there's a global crisis, but Azizi Investments won't be affected much.

"Fiscally-speaking, we only have projects in Dubai and, while sales are slower, real estate is still selling here. We're not stopping or scaling back on any projects or construction work. Furthermore, we'll make delivery on time," explained Merwiss Azizi, chairman of Azizi Investments.

According to Mohannad Sweid, chief executive of interior contractor, Depa, the number of developments announced in the Gulf will fall sharply, but the number of projects that are actually completed will decline only slightly. This is because of a discrepancy in the number of projects that are announced and the number that are carried through.

At one point, the company's research department estimated the number of high-end hotel openings in the GCC, based on announcements, would reach 280 over the next four years.

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READERS' COMMENTS

When the going gets tough the weak starts to fall through!
Posted by Hal-Luke Savas, London, United Kingdom on Friday 12 December 2008 at 06:42 UAE time

The golden rule of buildings industry is that the tough marketing gets going when the going gets tough. One can not market buildings like lemons but one can market buildings where others fail. The difference between failures and the winners is the degree of gambling and professionalism involved in managing the business. The starting point is to squeeze out every Dirham or Pound through existing portfolio by superior facilities management and invest back every Dirham or Pound saved into BMS (Building Management Systems). Naturally you will need a professional workforce to achieve the merry-go-round but if you are achieving it then you are managing professionally.

In short, a professional will not be running away from (so called!) hard times but see it as an opportunity to increase productivity, effectiveness and the efficiency of his building stock by rolling it into superior marketing.

That is the real challenge folks; so let scare stories be scare stories.

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