INTERNATIONAL
IMBALANCE AND RESTRICTIONS The lack of lower end property is a common problem. In most markets, that would be a signal to developers and agents to start supplying that demand. For instance, in France, some of the most popular leasehold properties in recent years have been flats intended for middle class professionals in provincial cities such as Toulouse, rather than high end Paris apartments. But while some Arabian real estate developers are now gearing up to do precisely that, this may not be great news for UK buy-to-let investors or estate agents. In Oman, for instance, foreign nationals generally are still restricted to certain developments at the luxury end of the market, though there has been some loosening of the original rules, in response to the economic environment. The imbalance is also a warning that the property markets of the Gulf haven’t emerged to address local needs.
with projects in Egypt and Turkey. There’s not much media comment
OMAN Instead, many
developments focused on foreign buyers,
leaving them vulnerable to a downturn. It’s
difficult to find UK agents who are involved in this area at the moment. Many are based in-country; for instance Taif
Properties is based in Oman, though it has a London office. Many agents who had Dubai properties on the books five years ago have stopped working in the area; Property
Frontiers, for instance, currently has no properties listed in any of the Gulf countries. Only SelectProperty seems to be intent on continuing its focus on UAE, but even this
developer is now looking elsewhere,
Top: A residence in Oman – almost built, much left to sell.
Bottom: Camels remain the main residents in many areas!
either, and hasn’t been since the credit crunch began in 2008. It’s as if the whole of the Gulf had just disappeared into a large hole with the credit crunch.
DO YOU BUY? OR NOT? At some point, Arabia will represent amazing value. But right now, no one seems ready to call the bottom of the market. Unlike Spain, where developers have pulled the plugs, developers in the Gulf are still flooding an already oversupplied market with new stock. That will defer any recovery by some years as the overhang has to be soaked up before prices can recover. And even then, it’s going to be a long uphill struggle to get British buyers interested again.
Add your own opinions online at:
www.propertydrum.com/articles/arabia
PROPERTYdrum APRIL 2011 47
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