Real Estate

While the real estate sector has experienced a lull in recent years, property prices have remained stable over the past 12 months – a significant improvement on three years ago when prices were in freefall. The sector has recovered from the global economic crisis, and government plans to expand the non-hydrocarbons sector bode well for the market. In addition, new luxury real estate developments are expected to come on-line throughout 2012, indicating there is still sufficient demand for high-value property. Furthermore, bank credit to the sector grew 91.5% from October 2010 through October 2011. The sharp increase and still relatively low penetration levels imply that the majority of credit is going to the commercial segment, and that there is room for expansion in the sector as a whole. This chapter includes interviews with Abdulla Abdulaziz Turki Al Subaie, Group CEO, Barwa Real Estate Company.