"Following the inauguration of its first phase, Reef Island Project, owned by the real estate development leader Lulu Tourism, is attracting unprecedented interest from various property investors and companies."
Zawya had the story from Bahrain Tribune.
Tuesday, July 31, 2007
New GCC real estate index launched
Al Mazaya Holding Co., a Kuwaiti shareholding company working in real estate developments, has launched a new real estate index for the GCC region. It has got a number of indexes on prices, values and volume plus includes a section with news provided by Zawya.
The usual issue with index like these is that while they provide some level of insight in the historical development, they obviously don't give much prediction of where the future gold mines will appear....
The usual issue with index like these is that while they provide some level of insight in the historical development, they obviously don't give much prediction of where the future gold mines will appear....
Monday, July 23, 2007
Bin Laden's $20bn bridge venture
According to this article in Arabianbusiness.com, A member of the Bin Laden family is looking to build a 17-mile bridge linking Yemen and Djibouti on the Horn of Africa in a bid to connect the Middle East and Africa.
Thursday, July 19, 2007
The Road to Riches
BusinessToday, a leading business magazine from Oman, recently ran a cover story about the real estate market in Oman.
Says Said al Busaidy, general manager, Eamaar Real Estate, “With Oman developing horizontally, there is no risk of prices (or rents) coming down. Prices will come under pressure only if vertical development (buildings with more than six floors) is allowed.”
Says Said al Busaidy, general manager, Eamaar Real Estate, “With Oman developing horizontally, there is no risk of prices (or rents) coming down. Prices will come under pressure only if vertical development (buildings with more than six floors) is allowed.”
Wednesday, July 18, 2007
Hamptons: Acute lack of commercial space in Muscat!
Just spent a couple of days in Oman catching up on the latest news. The real estate sector in Oman is still rather small and immature when it comes to freehold or leasehold opportunities but the good news is that it is not as overrun as the market in Dubai so it is possible to make a really good investment.
The most well known of the freehold projects is without a doubt The Wave - which I made a few lines on some time ago.
In fourth quarter this year the sale of apartment complexes will begin so those who are in for an attractive investment should prepare themselves. The developers will not allow really big scale bulk purchases like whole apartment blocks, but speaking with the management I learned that smaller scale investments - e.g. a handful of apartments - can be accepted.
Another freehold project also already launched is the Muscat Golf and Country Club while two projects are in the pipeline - The Blue City and Salam Resort and Spa at Yiti Beach.
On July 17 2007 one of the Sultanate's leading newspapers, Oman Daily Observer, ran a story about the growth in the real estate sector in Oman. Quoting Christopher Steel, General Manager of Hamptons International, the daily could report that the property market in Oman is in a period of sustained growth. "The year will see on average a 10-12 percent value increase for the residential sector", the GM said.
The company compiled a list of monthly rental prices for different sized residential properties in various areas including the growth over the last 12 months. This showed that in popular areas as Qurum, Medinat Al Ilam and MQ prices soared 40-50 percent over the last year. Being a property owner in one of these areas you can now get up to 2,500 Omani Rials (approximately 6,500 USD) per month for a 3- or 4-bedroom apartment or villa if you rent it out.
Mr. Steel also emphasized the acute lack of commercial space throughout the capital area Muscat saying that the they expected even greater returns from the commercial market than from residential in the future.
So Oman - and especially the market for office buildings in the Capital - certainly looks like being an area worth keeping a very close eye on...
The most well known of the freehold projects is without a doubt The Wave - which I made a few lines on some time ago.
In fourth quarter this year the sale of apartment complexes will begin so those who are in for an attractive investment should prepare themselves. The developers will not allow really big scale bulk purchases like whole apartment blocks, but speaking with the management I learned that smaller scale investments - e.g. a handful of apartments - can be accepted.
Another freehold project also already launched is the Muscat Golf and Country Club while two projects are in the pipeline - The Blue City and Salam Resort and Spa at Yiti Beach.
On July 17 2007 one of the Sultanate's leading newspapers, Oman Daily Observer, ran a story about the growth in the real estate sector in Oman. Quoting Christopher Steel, General Manager of Hamptons International, the daily could report that the property market in Oman is in a period of sustained growth. "The year will see on average a 10-12 percent value increase for the residential sector", the GM said.
The company compiled a list of monthly rental prices for different sized residential properties in various areas including the growth over the last 12 months. This showed that in popular areas as Qurum, Medinat Al Ilam and MQ prices soared 40-50 percent over the last year. Being a property owner in one of these areas you can now get up to 2,500 Omani Rials (approximately 6,500 USD) per month for a 3- or 4-bedroom apartment or villa if you rent it out.Mr. Steel also emphasized the acute lack of commercial space throughout the capital area Muscat saying that the they expected even greater returns from the commercial market than from residential in the future.
So Oman - and especially the market for office buildings in the Capital - certainly looks like being an area worth keeping a very close eye on...
Monday, July 16, 2007
Is the office market in Bahrain the next star?
When looking for a good real estate investment in the Gulf one might want to consider buying an office to let in Bahrain.
When buying, you can easily end up paying 50% more per square meter for an office of equal quality and location in Dubai compared to Bahrain. But then again, the rents are also equally higher in the busy Emirate.
However, while the favorite topic in the regional real estate news currently is whether or not the market is witnessing a Dubai bubble about to burst, there seems to be general consensus that Bahrain has only just embarked on the journey. And - maybe even more important from a risk perspective - is growing at a slightly more controlled pace.
In other words, one might speculate if buying an office to let in Bahrain is providing a good balance between risk and sustainable return.
It is a fact that there is considerable under supply of good office meters in Bahrain. Obviously the fact that it is mandatory when establishing a company in Bahrain to have a lease agreement in a building approved by the municipality for commercial use, helps stimulating the demand.
But also the economy’s high growth rate and the modernization of the legislative and administrative framework for doing business in and with the Kingdom is attracting a high number of foreign companies to set up shop every month. One obvious example is the financial sector where nearly 400 financial institutions from abroad have been licensed and established in Bahrain.
And there is no reason to think that this development shouldn’t continue for the years to come.
Currently a quality office meter in a good location in Bahrain could be found at 2,500 USD, and with a rent on the good side of 350 USD per year a nice yield is in sight.
The only problem seems to be that a limited number of large scale prestige developments are announced, with Bahrain Financial Harbor as the prime example of one such flagship project. While this is obviously good from the point of view that it helps keeping up the yield, the flip side of that coin is that it will require some help from someone on the ground with a good feeling for what’s hot and what’s not if investors from abroad want to seize this opportunity.
But then again - being able to spot the good opportunities before they become too well known in the market, isn’t that what making a good investment is all about…..
When buying, you can easily end up paying 50% more per square meter for an office of equal quality and location in Dubai compared to Bahrain. But then again, the rents are also equally higher in the busy Emirate.However, while the favorite topic in the regional real estate news currently is whether or not the market is witnessing a Dubai bubble about to burst, there seems to be general consensus that Bahrain has only just embarked on the journey. And - maybe even more important from a risk perspective - is growing at a slightly more controlled pace.
In other words, one might speculate if buying an office to let in Bahrain is providing a good balance between risk and sustainable return.
It is a fact that there is considerable under supply of good office meters in Bahrain. Obviously the fact that it is mandatory when establishing a company in Bahrain to have a lease agreement in a building approved by the municipality for commercial use, helps stimulating the demand.
But also the economy’s high growth rate and the modernization of the legislative and administrative framework for doing business in and with the Kingdom is attracting a high number of foreign companies to set up shop every month. One obvious example is the financial sector where nearly 400 financial institutions from abroad have been licensed and established in Bahrain.
And there is no reason to think that this development shouldn’t continue for the years to come.
Currently a quality office meter in a good location in Bahrain could be found at 2,500 USD, and with a rent on the good side of 350 USD per year a nice yield is in sight.
The only problem seems to be that a limited number of large scale prestige developments are announced, with Bahrain Financial Harbor as the prime example of one such flagship project. While this is obviously good from the point of view that it helps keeping up the yield, the flip side of that coin is that it will require some help from someone on the ground with a good feeling for what’s hot and what’s not if investors from abroad want to seize this opportunity.
But then again - being able to spot the good opportunities before they become too well known in the market, isn’t that what making a good investment is all about…..
Surf’s up in Oman’s most famous project
One of the most famous development projects in Oman is The Wave. The project has earned its reputation from a number reasons. For one it is the first large-scale freehold property project in the Sultanate. Secondly, the beach front development has a unique location just outside the capital Muscat 10 minutes from Oman’s international airport - which by the way is undergoing a major upgrading these years to cater for an expected massive influx of tourists and business travellers in the future - and less than four hours by car from Dubai.The first phase of the project was offered for sale to the public in 2005 and this and subsequent phases have been sold out hours after the opening. People had to queue up by midnight on the night before the gates opened to the sales centre if they wanted to have a chance of being one of the lucky ones to move into their new villa or townhouse when The Wave finishes in 2008.
The apartments yet have to be released for sale which is expected to happen by the end of 2007. So watch this space….!
Welcome to the Gulf Real Estate blog!
Welcome to Gulf Estate Update - the weblog with news, updates, rumors, gossip and hopefully useful information about the real estate sector in the Gulf. I hope this will become a valuable point of reference for those interested in this area.
I would like to invite readers to provide their comments, viewpoints and suggestions, so that the content can reflect as diverse a selection of opinions as there are drivers behind having an interest in this topic.
However, I do of course retain the right to edit comments if deemed inappropriate by me. ;-)
Kind regards,
Niklas Nielsen
I would like to invite readers to provide their comments, viewpoints and suggestions, so that the content can reflect as diverse a selection of opinions as there are drivers behind having an interest in this topic.
However, I do of course retain the right to edit comments if deemed inappropriate by me. ;-)
Kind regards,
Niklas Nielsen
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