Al Mazaya questions current methods for measuring the growth of the region's property market

With the rising number of real estate projects and the corresponding interest coming from both Arab and foreign investors alike (residing both inside and outside of the region), it would appear that the market is in need of a means to assess the large number of risk factors that have become associated with this rapidly growing field. Currently a quantitative approach to understanding the processes of the market that provides information, figures and data which analyze the growth of this sector, providing a true scientific and less haphazard understanding of the industry is unavailable.

"Independent Statistical authorities are mostly absent from this industry and a neutral pricing index is missing. What is needed is an objective price index that measures the changes in prices and provides a better vision for the market." said Eng. Salwa Malhas, Al Mazaya - Executive Vice President Business Development.

Al Mazaya has always been distinguishable from its competition with the development of many high profile projects across the Arab world, particularly in Kuwait and the UAE. However the firm also provides a number of weekly, monthly and quarterly property reports in addition to studies and newsletters, which detail movements in the industry in extensive depth.

"We at Al Mazaya like to cover all aspects of real estate development. It is with the various services we provide that contribute in our successes and which keeps Al Mazaya's name as a trusted reference for not only property development but as an original source for data and information, as well", she added.

The firm's shares which are listed on the Kuwait Stock Exchange and Dubai Financial Market demonstrate its investors' trust in the real value and depth of the company. This trust extends beyond its achievements in property development, but also in contributing to building society by providing scientific and statistical analysis of the Arab World, putting it on a par with the West.

"We look forward to consolidate our presence in the Arab Property Market, through a number of plans and may I add 'surprises', which will mark a key turning point and make a heavy impact on the region's property market", said Malhas.

Furthermore, Malhas mentioned that despite the revolution, growth and development in the Arab property market there is still room for much progress. She said that the industry still needs more creative ideas that not only conveys its success, but also sustains and nurtures it in order to create more vital projects. The investment environment in most Arab countries and cities in the Gulf needs to live up to the opportunities available in order to prevent conflicting figures and statistics and data regarding the growth of the industry. She emphasized that data needs to made available that is accurate and can be fine tuned to a science that leaves no room for doubt.

Adding to this, Malhas highlighted that differences in numbers, statistics and data in the property investment market tend to appear as a result of some reports exaggerating the costs and values of investments required or expected. Such assumptions that arise from such figures are inevitably doomed to be inaccurate. The absence of accurate data issued from trusted committees authorized to give reports and forecasts of the market has created divergence in the figures that are normally presented to investors. For this reason Malhas believes that the task of real estate companies should not be limited to merely construction, but to contribute in various ways to the development of the real estate sector in the whole Arab World as a whole.