Demand for real estate, especially luxury housing units, has declined this year, due largely to the ongoing global financial crisis. Experts, however, expect the market to pick up again next year as the global economy begins to recover.
Profits made by real-estate companies fell by between 20 and 60 per cent within the last nine months, compared to the same period last year.
"Most real-estate companies claim their profits after they deliver their units in order to facilitate installments and sell more," said property expert Shadi Sherif. "But they haven’t made profits because many buyers returned their booked units after failing to keep up on payment installments."
Some companies have suspended planned luxury housing projects and have begun focusing instead on projects catering to lower-income markets.
Ahmed Mattar, secretary-general of the Arab Federation for Real Estate Development, expects the market to pick up again next year due to the accumulation of suspended demand. "Prices went up 300 per cent in 2005 as a result of four years’ worth of accumulated demand," he said.
Translated from the Arabic Edition.
