Realtors upbeat despite global gloom

Dubai Gulf real estate developers remain upbeat despite fears that the global economic downturn could hit the property sector in places such as the UAE.

In a boost to the local property market, projects worth more than Dh500 billion have been announced in Dubai this week.

They take the value of projects to be developed in the city over the next 10 years to more than Dh1.3 trillion.

"Look at the projects that are being launched, these are in billions [of dollars]. If we felt as developers and investors that this was not the way to do it, we would not be launching these projects," Mohammad Al Hashimi, the executive chairman of Zabeel Investments, told Gulf News in an interview.

Asked about the global credit crunch, which has affected liquidity in the local banking system and could reduce money flow from foreign investors, he said this could only have a short-term impact.

Tightening

"We have a tightening of the market today but I believe it is a short-term thing," Al Hashimi said, adding that there is still a short supply of hotels, office space and residential property in the UAE.

With the shortage of property driving up prices, Peter Riddoch, chief executive officer of Damac Properties, believes Dubai "has the potential to become the most expensive commercial real estate destination in the world in the coming years."

Turmoil

Some even see a "positive" impact in the region of the global financial crisis and expect the turmoil to encourage more Arab money parked in the US and Europe to flow back into the region.

Mounib Hammoud, the chief operating officer of Solidere International Limited, which is behind Ajman's Dh220-billion Al Zorah project, believes this could be similar to the flight of Arab capital from the US in the wake of the September 2001 terror attacks in New York and Washington.

"What is happening today will bring more Arab money into the region and they see real estate as a safe investment in the current conditions. I am confident the impact of this crisis will turn out to be positive on the region," he said