Developers should focus on medium-cost developments says Tamweel CEO

Adel Al Shirawi was speaking at the opening session of the first Forbes Middle East CEO Conference in Doha, Qatar.

Al Shirawi expressed his views at a panel discussion along with Qatar's Nasser H Al Ansari, CEO, Qatari Diar Real Estate Investment & Development Company, Pierre N Rolin, Founder, Chairman & CEO, Strategic Real Estate Advisors, UK which was moderated by Stephen Fitch, European Bureau Chief, Forbes Magazine UK.

Al Shirawi pointed out that given the cyclical nature of GCC economies, medium and low-cost developments and commercial projects would witness lesser price fluctuations in the long run as compared to high-cost developments. According to him, developers are still launching projects based on early studies, which predicted high overall demand for housing. "Developers should dynamically evaluate demand and supply situations and, the volatile and fluctuating nature of the real estate sector in the region. More careful analysis of the nature of the demand for housing shows that the situation has begun to change and developers need to address the increasing demand for medium and low-cost housing."

"The GCC economies are currently witnessing high growth rates backed by sustained high oil prices and greater inflow of investment into the region. The cyclical nature of economy dictates that eventually at some point in time prices will begin to stabilize as supply moves closer to demand. Investment in medium and low-cost developments will enable developers to greatly reduce the risk caused by price fluctuations," said Al Shirawi.

He added:

"Currently, the real estate sector continues to witness significant growth with demand outstripping supply in most of the GCC countries. The economic growth in the region and the growing demand for commercial space has led to a situation that calls for Dubai's real estate growth model to be replicated across other states."

Al Shirawi was speaking at the opening panel discussion titled: "Luxury Development Gone Wild," which focused on the problems caused by the sheer scale of luxury development in the GCC cities and the ways in which developers can minimize their risks.

The Forbes Middle East CEO Forum is being held for the first time and is the Middle East chapter of the Forbes Global CEO Forum, an annual networking event for Chief Executive Officers in world class organizations. Already an enormous success in the U.S., Europe and Asia, this entry-by-invitation-only forum will engage all participants in Forbes' trademark "straight talk". The main focus of the Forbes Middle East CEO Forum will be on ways and means by which CEOs can successfully gauge the risks to move ahead in the oil rich Middle East while reaping the rewards.