Issue No 327 - October 11, 2010

Mena realty market 'set for major growth'

The real estate markets in Mena region will witness major growth especially in Morocco, Lebanon and Egypt, according to Tasweek Real Estate Development and Marketing.

An advisor and solutions provider serving the regional real estate market, Tasweek provided valuable insights on the status of the property industry, particularly the residential sector, at the recently concluded Cityscape Global expo in Dubai.

“While there is significant room for real estate growth across Mena, the industry needs to learn more about the unique characteristics of each target country and potential partner,' said Tasweek CEO Masood Al Awar, while delivering a panel speech at the expo.

Al Awar also discussed demand and supply factors, the history of the region’s residential markets and future opportunities during the speech.

'It is important to study aspects such as the quality of partnerships, local customer needs and government initiatives affecting business. There has to be a detailed plan to move forward as the Mena region gains a more strategic position over the global real estate markets,' he added.

'Tasweek considers Lebanon an excellent property market based on the 41 per cent increase in property sales it posted during first quarter over the first three months of 2009,' said the company chief.

'The country set a new record by closing 22,000 property transactions worth $2.1 billion during the period. Analysts predict that lower interest rates, state housing assistance schemes and looser loan restrictions will drive strong real estate performance throughout this year,' he explained.

'Egypt is also recommended for its emerging property market in strategic tourist locations. The country offers property price returns of up to 30 per cent per annum in certain locations, easy access to some of the top international travel destinations, and zero capital gains tax, among other incentives,' Al Awar said.

'These are all backed by solid economic growth and political stability,' he added.

On Moroccan property scenario, Al Awar said its appeal lies in competitively-priced leisure properties which are around 50 per cent less than in other European locations.

'Besides this the other attractions are waiving of property tax during the first five years; attractive Mediterranean climate and the positive industry effects of its Vision 2010 tourism campaign,' he added.

Al Awar pointed out that the current demand and supply figures do not reflect the market needs and customer demand for property market fundamentals.

On the Cityscape success, Tasweek chief said it received project offers representing credible partnerships in healthcare, tourism, hospitality and entertainment promising returns of over 25 per cent.

Source: TradeArabia News


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