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Panic over for UAE real estate market - Rakeen
The panic in the GCC real estate market is now over and all the ingredients are there for a recovery, the managing director of Ras al Khaimah master developer Rakeen has predicted.
Ghassan Youssef said the main challenges for the sector in the fourth quarter were the lack of end-user mortgages and project financing as well as re-establishing investors’ and the public’s trust in property.
"The panic is over. The industry has become realistic, adequately cautious and justifiably optimistic. The region has all the ingredients to recover to a reasonable status, not to unrealistic prices and the market that the flippers created," he said in an interview with the organisers of Cityscape Dubai.
Last month, Rakeen was named judicial custodian of Khoie Properties, troubled developer of the emirate’s $800m La Hoya Bay project.
Asked what lessons the industry should learn from the downturn in the sector, Youssef added: "Not to take success and growth for granted and guaranteed without limits; to have sound strategies in place to weather storms...we need to keep the bigger picture in mind for a healthy growth and sustainable future of this country."
He said that government legislation was needed to make banks provide adequate mortgage facilities at affordable rates, provided the applicant can prove they can guarantee payments.
In comments to Construction Week Online, Youssef added that Rakeen would continue to look for opportunities to invest overseas to add to their current projects in Congo, Georgia, Iran, Kyrgyzstan, India and Lebanon.
“Industry and increasing GDP are still driving demand for real estate – it’s not a place that was fashionable or over-hyped. We’ll continue to look at development opportunities internationally but they must all cater to a need,” he said.
Although acknowledging that the financial climate had changed, Youssef insisted that Rakeen would continue to launch new projects but at a slower rate than previously and “as necessity demands”.
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Comments 1-4 of 4
Posted by Anwar, niagara falls ont, Canada on 16 October 2009 at 01:59 UAE time
Jon said it best, who are they trying to trick.
It's all about trying to sell there project.
Posted by Jon H, Dubai, UAE on 13 October 2009 at 13:53 UAE time
Mr. Managing Director, who are you trying to fool or trick to buy into Rakeen properties this time? Panic started in Jan 09 and did not end yet, not sure if we're half way through, it may end when clowns/jokers/analysts stop predicting and use some common sense and real data to evaluate the markets.
Posted by رامى, AD, UAE on 12 October 2009 at 14:26 UAE time
yes it is a joke or probably that guy is living in another planet , probably close to the sun.
Posted by Anwar on 11 October 2009 at 20:54 UAE time
Another Joke around.........!!!!