Study: Syria's Real Estate

I was reading an update report on the real estate sector in Syria done by the Kuwait Financial Center Highlighting the major changes in the Syrian economy in regards to real estate. I will bullet point the findings.

• The governments' 5 year economical plan which is aimed at attracting foreign investors and liberalizing the Syrian economy has so far been able achieve a growth of 3.5% on average in the past 2 years according to the IMF.

• Notable Developments include: opening up in economy, and reduction in taxes driving the real estate market; increase in apartment prices by 20%; residential prices increase due to favorable demographics and the increase of foreign business executives; commercial supply growth rates continue to lag demand growth rates; 1Mn Sq meters of real estate projects launched during the past 2 years.

• New projects include: Eighth Gate (Emaar), Damascus Hills (Emaar), Damascus Financial District (Aref Group), Syrian Bonyan City (Bonyan Group), Futtaim Project (Futtaim Group), Palm Village (Bin Laden Group), Latakia Tourism Projects (Diar), Kiwan Project (Kharafi), Nasser Gardens (Kharafi),.

• Demand for high end residential units is on the rise leading to price and rent hikes. (due to increase in foreign executives, and political turmoil in neighboring countries, i.e. 1 million Iraqi refugees)

• Tourism sector most promising sector in terms of contribution to GDP growth. Tourism revenues amounted to $2.3 billion in 2005.
  

• According to the ministry of tourism, the current hotel capacity cannot handle any increase in the number of tourists. Syrian hotels are considered over priced and over classified despite the fact that most hotels are in need of renovation, and their rates to be re-quoted to compete with other countries.
  

• The building and construction sectors are expected to witness more growth upon the launch of many real estate projects.
  

• One of the main pillars of a healthy economy is the size of its investments. Syria is working hard on attracting new investments through allowing the private sector to invest in the areas that were hitherto restricted to state monopoly, which include banks, insurance companies and cement factories.

The report continues and if you want to read it, its on:
http://cm2.zawya.com/researchreports/
p_2006_09_12_01_48_17/20070430_p_2006_09_12_01_48_17_013449.pdf