More ups and downs for Bahrain
Despite simmering unrest and a tarnished image over alleged human rights abuses, the number of real estate transactions in Bahrain rose 59 percent in the first half of this year, according to Survey and Land Registration Bureau statistics obtained by Al Watan newspaper. The vast majority of those transactions were made by Bahrainis, but 10.1 percent did come from overseas buyers. In total, these transactions were worth $842 million. But all is not well for the sector. Prime rents in the capital city Manama dropped 16 percent in the first quarter, making it by far the worst performing city in the world over that time period. The closest city was Hong Kong, which saw a 4.1 percent drop in rents.
Lebanon’s real estate sector: only slightly more transparent
AIn its bi-annual global real estate sector report, the 2012 Real Estate Transparency Index, international real estate firm Jones Lang LaSalle ranked Lebanon fifth in the Middle East and North Africa and 66 out of 97 countries worldwide in terms of transparency. And while Lebanon has moved up in its global ranking this year, the sector is still only considered to be “semi-transparent”. According to the report, one of the biggest reasons for Lebanon’s ascent was the “newly formed Real Estate Association of Lebanon, [which implemented] other improvements in transparency by better regulating the previously chaotic brokerage industry.”
Regional energy investments soar
Results of a study released last month indicate that new investment in the energy sector is on the rise this year. This is welcome news for a Middle East and North Africa, which has long struggled with meeting its energy needs. The report by Ventures Middle East, in which energy-stricken Lebanon receives barely a mention, points to 97 new water and power projects across the Middle East that have started or will start construction this year, with a total value of $32.7 billion. The top beneficiaries are the United Arab Emirates, Saudi Arabia and Kuwait. The UAE has 10 new water and power projects on tap to begin construction by year’s end, worth a total of $1.5 billion — namely the $740 million Noor 1 solar energy plant and the second phase of the $580 million Emal Power Plant. Saudi Arabia has 15 new power projects worth $8.8 billion, led by the $1.2 billion Shuaiba 2 Power Plant and the $2 billion Al Qurayyah Independent Power Plant. Kuwait is set to build $4.2 billion worth of new water and power plants, spread over 19 different projects. The largest of the group will be the $2.7 billion Al Zour North Independent Water and Power Plant.
BoA: Saudi Arabia to lead regional construction boom
A new Bank of America-Merrill Lynch report predicts that Saudi Arabia will lead a new 15-year construction boom across the Middle East and North Africa, led by spending on regional infrastructure projects. The report states that the construction sector will benefit from “reforms to raise productivity of the non-oil sector”, led by the kingdom. The study also predicts that investments in construction across the MENA will total $4.3 trillion by 2020, which would be an increase of nearly 80 percent over current spending this year.
Dubai property sizes shrinking
Long known for outlandish, and extremely large property sizes, Dubai is seeing more transactions in smaller properties during the first half of this year. Figures released in mid-July by the Dubai government’s Land Department show that the average size of residential properties purchased in the emirate shrank by nearly half in 2012 to date. And while the total number of all real estate transactions rose by 24.5 percent over the same time last year, to 12,521, the size and value of those properties has dropped by 44.8 percent. In the first half of 2011, the average size of purchases was 533 square meters. Today’s average size is 294 sqm.
Mubarak-era tax law coming soon to Egypt
Egypt is pushing ahead with a controversial law that was originally passed under deposed leader Hosni Mubarak, Egyptian daily Al Ahram reported in late July. The country’s new finance minister, Momtaz el-Said told the paper that a new real estate tax law would go into effect in January of next year, but with amendments to some of the most widely criticized portions of the original draft of the law. Said remarked that the amended law will exempt citizens’ homes from the tax, and that 25 percent of funds collected by the government would go toward developing poorer areas across Egypt. He estimated that the new tax would bring in $330 million annually for the state.
Mubarak-era tax law coming soon to Egypt
Egypt is pushing ahead with a controversial law that was originally passed under deposed leader Hosni Mubarak, Egyptian daily Al Ahram reported in late July. The country’s new finance minister, Momtaz el-Said told the paper that a new real estate tax law would go into effect in January of next year, but with amendments to some of the most widely criticized portions of the original draft of the law. Said remarked that the amended law will exempt citizens’ homes from the tax, and that 25 percent of funds collected by the government would go toward developing poorer areas across Egypt. He estimated that the new tax would bring in $330 million annually for the state.
Saudis hopeful with new mortgage law
In June, Executive reported on a newly approved draft mortgage law in Saudi Arabia, a first for the kingdom, meant “to ensure the fairness of the transaction and the safety of the financial system.” In late July Arab News reported that experts across the kingdom expect the law to modernize the sector and attract more foreign investment. “After the implementation of mortgage law, we expect the Saudi market to witness an increase in the amount of foreign investment to 70 percent,” Aziza Mansour, chairman of real estate developer, Aziza Mansour, told the paper. He added, “Many real estate companies have been looking to invest in the Saudi real estate market. However, new Emirati, Japanese, and Korean companies would join the Saudi real estate market very soon. I believe that Makkah is the most demanded residential area where a Korean company will start the building of five residential projects very soon.”
