| INTERNATIONAL. Strutt & Parker's 'Prospects for Property' conference predicts continued growth based on strong economic and demographic fundamentals across the GCC for developers and investors, whilst forecasting great opportunities for GCC cash investors in the UK market-place over the coming months.
Prospects for Property has been a major success in both Abu Dhabi and Dubai, the latest edition of the leading London Stock Exchange real estate conference since 2002. This sister event gathered together over 400 of the Middle East’s leading executives from the elite of the GCC investment and real estate community. It was held over the last two days at the Beach Rotana Hotel & Towers in Abu Dhabi and the One & Only Royal Mirage in Dubai.
Andrew Yeandle, CEO of Strutt & Parker Middle East, said he was pleased with the company's first regional event. "This has been a great start for Strutt & Parker here and will give us excellent momentum for the rest of 2008. We are in a unique position to provide truly independent advice on both the UK and GCC real estate markets and working with the likes of Paul Ormerod from Voltera gives us a unique advantage in the market. The conference showcases our approach to client service in that in-depth market analysis and transparency are combined with best practice. That's what we bring to the market in the GCC.”
"Having worked in the region for the past seven years, we're excited about operations here in the UAE. We look forward to working with many of the distinguished guests from the conference and introducing our key clients to the region."
Paul Omerod of Voltera presented the longer term perspective and underlying growth prospects of the UK property market.
Ormerod gave his thoughts on the UK's economic state of play. “The short term prospects for property in the UK are gloomy. There will be opportunities for investors wishing to take advantage of the longer term growth prospects. London has reinvented itself over the last 25 years and is now using its space more efficiently and benefitting from the growth in cultural and creative industries, the most rapidly growing sector of developed countries," he said.
Ormerod also drew on property data spanning back to 1870 stating: “The US and UK economies are resilient to economic shock. If this is a recession, it is not going to be a long one," he said. "There has not been one single year when all developed countries have been in recession together."
“It is the illiquidity in the debt markets that is causing the debt-driven investors to sell up or refrain from investing. It is the increase in income return we are seeing that signals to cash buyers that there are opportunities to capitalise on the short term downturn, and benefit from the long term growth prospects."
Looking at the Middle East economies and property markets, Jason Peers, Group Chief Executive Jasper Capital, reinforced the view that the Middle East continued to provide exiting opportunities to invest and good growth prospects going forward.
"Some 66% of the GCC population is below 30 years of age, providing excellent growth related opportunities over the short to medium term," he said, noting that iincreasing regulatory change along with 80% of growth in GDP coming from outside the oil sector only added to the attraction of investing and locating to the GCC.
Patricia McCall, Jasper's Head of Research highlighted that challenges that had to be met in the short term most notably inflation and the need to alleviate this by bringing on line more housing and keeping food prices in check.
Miles Payne, Director Strutt & Parker Middle East spoke about the GCC property markets. He said that “the mega projects, continued infrastructure expansion projects and increased business locations such as Dubai’s DIFC continue to attract investors, big business and key personnel to the region."
Payne also ran through the prospects for Abu Dhabi, Dubai, Qatar and Saudi Arabia stating that there was a common need to ensure accurate estimations of all construction costs at the feasibility study stage. He said: “The UAE is leading the way in green buildings, protecting and increasing the attraction of the region to investors and businesses alike.
The conference concluded with Peers stating: “The boom is set to continue in the UAE despite the global liquidity crisis and other geopolitical issues. Regional liquidity is underpinning continued real estate investment and development."
Strutt & Parker is the UK's largest privately owned property consultancy with over 51 offices and 900 employees. It has recently opened offices in both Abu Dhabi and Dubai as part of a joint venture with Jasper Capital, a leading corporate finance and management consultancy firm in the Middle East.
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