Mortgage is key to real estate recovery: DAMAC Properties supports GCC Mortgage Summit 2010 as Development Partner
Senior Executive from DAMAC Properties to share insights into the industry roadmap at the conference
DAMAC Properties -- the luxury lifestyle developer - has announced its support as the Development Partner at the upcoming GCC Mortgage Summit 2010 in Bahrain. The Company aims to engage in dialogues with participating delegates, banks and investment companies to facilitate mortgage solutions available in the Middle East. DAMAC Properties is the only developer from GCC to be associated with the summit in this capacity.
At the event, to be held at the Gulf Hotel in Bahrain from June 2 to 3, 2010, Mr Adil Taqi, who heads the Investment arm of DAMAC Holding will share his views on the future prospects of the real estate industry with emphasis on mortgage & its importance to the recovery of the sector.
“DAMAC Properties believes that the mortgage market in the GCC is set for a gradual but sustainable growth in the coming years. Actively facilitating the growth of the sector is important for the development of the regional real estate industry. The global financial crisis forced banks towards conservatism and the market today has stiffer regulations and complex mortgage products for the consumer. It is important for the banks and developers to collaborate and provide simple long term products to the consumer. Currently the mortgage penetration in the GCC is low compared to Europe and USA and to exploit this potential, the industry needs to come together and discuss the way forward,” says Adil Taqi.
‘The regional mortgage sector is currently witnessing a structural overhaul and where innovation, customer service and long term planning is key for sustainability’, he added. According to the European Monetary Fund (EMF) Q3 2009 Quarterly Review of the European Mortgage markets, most mortgage markets have continued to experience falls in new lending over the previous year. These falls have generally stabilised due to a number of factors - the continued expansionary interest rate environment, improved housing affordability and some short-term recovery at the macroeconomic level.
‘We are currently experiencing an evolution in the mortgage industry. The government regulations will play a vital role and the remainder of 2010 and 2011 will define the industry in the region. According to a latest report issued by Moody’s, the anticipated mortgage law in Saudi Arabia is likely to drive growth in the mortgage rates market across the GCC. We are all very keen to see how it unfolds’, added Adil.
The 2010 GCC Mortgage Summit will provide an arena for industry experts to conduct a healthy debate that will reshape business strategies, business networks, enable best practice share, while identifying challenges, as well as specific one-on-one meetings with potential partners and service providers, and the better planning of financial investments in future.
“DAMAC has been in the forefront of real estate development in several markets and we are delighted to have DAMAC’s support as a key sponsor to the GCC Mortgage Summit. We believe DAMAC’s experience from operating in different markets will provide significant insights to the participants” said Mr. R. Lakshmanan CEO, Sakana Holistic Housing Solutions BSC (c), organisers of the 2010 GCC Mortgage Summit
Building on the success of the GCC Mortgage Class 2009, the summit will address major opportunities, issues and challenges in the sector with the ultimate aim to better understand what it will take to succeed in this very competitive business arena, in 2010 and beyond.