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Opportunity in a downturn

While Colliers International are predicting a ten percent ease in house prices in Qatar in 2009, the market is generally expected to stabilise mid-year. Reg Barichievey, general manager at property consultant Colliers International, in Qatar, recently claimed that prices would not drop significantly, though there might be a slight correction.

As a country, Qatar still represents a relatively promising development opportunity, and there is likely be a large number of prospective buyers seeking to snap up property there if prices do show signs of softening. Increasing numbers of expats seeking to escape from more badly affected areas in the region is also expected to cause a resurgence in rental demand.
Among the most internationally-renowned of Qatar's ongoing real development projects are the $5.5bn New Doha International Airport, the $5bn Lusail real estate project and the $5bn tourist project in al-Khor.

And these are only the tip of the iceberg. However, these huge projects could help to reassure investors that Qatar has no intention of lowering the bar in 2009.

Closer to the damage, it would be easy to ignore Abu Dhabi, but this could also be a mistake.

Abu Dhabi's real estate sector looks set to outperform Dubai this year and is generally predicted to surf the slump significantly more smoothly than its neighbour.

Though fears have arisen that the market is weakening, largely fed by a drop in several companies' fourth quarter profits, and even the occasional fourth quarter loss, Credit Suisse's ‘EMEA Real Estate: 2009 Outlook' report still states a preference for UAE real estate over other regional players, anticipating ‘a quick recovery.'

The report also concurs with the belief that Abu Dhabi is a safer real estate investment than its sister emirate, with analysts claiming that they remained advocates due to the ‘expected influx of state money into the sector to address the current supply deficit, as well as availability of project financing from the Abu Dhabi government and, or, sovereign wealth funds.'

In summary, though the real estate sector is undoubtedly suffering, there are still opportunities available to the long-term investor. The economic crisis has effectively initiated the introduction of policies by governments to help safeguard long-term stability in the sector, which can only be good news for the industry in the future.

As real estate prices reach rock bottom over the next couple of months and prices begin to level out, there has arguably never been a better time to buy. After all, the old adage goes: "Buy when others are selling, and sell when others are buying."

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