Political tensions, market volatility hit Solidere
It has been a roller coaster ride for Solidere so far this year, mostly due to a shaky security situation in Lebanon, but also because of a sector-wide drop in sales. The property developer’s A and B shares dropped of 3.1 percent and 4.19 percent, respectively, in the third week of May on the Beirut Stock Exchange after violent clashes across the country. However, share prices climbed back up to $12.5 and $12.34 by the end of trading on May 25. As Executive went to press at the end of May, the developer’s global depository receipts listed on the London Stock Exchange were down 29.6 percent since anti-government protests began in Syria last spring. Many local analysts predict that if Solidere shares remain in free fall, major shareholders Bank Audi and BankMed would initiate a buyback scheme to boost prices, as they have done in the past.
Construction down, again
According to figures released by the Order of Engineers in Beirut and Tripoli, construction in the first four months of this year is down 10.5 percent from the same time last year. The most significant drop was in April, which saw a 26.5 percent dip in the number of new building permits over the same period in 2011. The Order of Engineers attributed much of the decline to the worsening situation in Syria and its effect on Lebanon. These figures follow a general downward trend over the last year for the entire sector. A Citi Research report, MENA Construction Project Tracker, showed in April a regional drop of 30 percent in the number of new projects awarded across the Middle East and North Africa.
Cityscape award goes to Abu Dhabi’s Sorouh
Sorouh Real Estate Company won the 2012 Cityscape Abu Dhabi award for the best mixed-use project in the region for its Sun & Sky Towers development in Abu Dhabi. Sorouh Chief Operating Officer Gurjit Singh said the development had attracted “over 900 families” after the award announcement. The Sky Tower stands at 74 floors, and the Sun Tower is 65 floors, making them the tallest buildings in Abu Dhabi. The company broke ground on the towers in 2007 and the first tenants were able to move in last year.
Beirut Property Fair
The annual three-day Beirut International Property Fair took place at the Conference Center of Hilton Beirut Habtoor Grand Hotel at the end of May. The event featured talks on attracting foreign investors to Lebanon, social media marketing strategies, investment in green technologies, and construction site safety. A general theme of smaller, more affordable apartments highlighted this year’s conference as Lebanese property developers slowly adjust to the realities of a general downturn in the local real estate market. Beirut-based investment firm MENA Capital used the event to launch its new 10,000-square-meter Bella Casa gated community in Beirut (see page 88).
UAE property agency welcomes criticism
Emirates-based property agency Better Homes is attempting to take the lead in a transparency drive for the sector, by creating an online rating system where customers can rank the performance of individual real estate agents directly on its website. The idea is to enable prospective buyers, and those who have already purchased property, a chance to rate and discuss their experiences in a public forum. “Honest and open customer reviews will enable new customers to find the best agents,” Ryan Mahoney, chief executive of Better Homes, told the Abu Dhabi-based newspaper The National shortly after the rating system was launched last month.
Palm Jumeirah courts young buyers
Emirates property developer Nakheel will soon expand its residential offerings on the Palm Jumeirah after it said financing had been secured for 192 studio apartments. The new development, Palm Views, “will appeal to young, vibrant individuals and couples who want a prestigious address at a price they can afford,” Nakheel chairman Ali Rashid Lootah said at a press conference. Studio apartments are 150 square meters, and start at AED1 million ($272,000). Palm Views will be split into two towers, each with 96 residential units. Construction is slated to begin by the end of this year, with first delivery expected in the first quarter of 2014. Palm Views will follow a regional trend that has new developments moving away from the higher end of the market to focus on first-time buyers.
Awards handed out at Cityscape Qatar 2012
Cityscape Qatar 2012 awards were announced on the last weekend of May. Notables included Best Sustainable Development Award, which went to Msheireb Properties for its Msheireb Downtown Doha project, and the Residential Project Award, given to Qatar-based United Development Company for its offering, The Pearl Qatar, which won for Mixed-Use Project. Other winners included Hamad Medical Corporation, Barwa Real Estate, and Qatar National Hotels Company. A number of large deals were also announced at Cityscape Qatar, and Barwa Real Estate Group used the conference to officially launch its Lusail Golf Residential Development. “The number of agreements signed at the event are themselves a testament to the leading role Barwa continues to play in Qatar’s development,” Barwa’s chief executive officer Abdulla Abdulaziz Al Subaie told reporters after the launch.
Bahrain property sold ‘at a loss’
According to a report by international real estate consultancy CBRE, Bahrain’s residential property market has taken a serious beating since anti-government protests began there last year. The report noted that: “Several middle-income housing projects have been launched in Bahrain in the last three months, and sales have reportedly been brisk to date.” But things are so bad that “that some of these projects are effectively being sold at a loss, or at best, cost price, in order to stimulate the market and raise the profile of the ongoing master-planned projects of which they are merely [at] a very early phase,” the report said. CBRE offered little hope for the immediate future as Bahrain’s public image remains tarnished by a brutal government crackdown on dissidents in the Gulf country.
