UAE businessman Mohamed ElBarra, founder of Emaar Properties, has stated that hotel occupancy rates are currently around 60%. He also noted that sales at shopping centers have decreased by about 15%, despite the number of visitors remaining steady. This decline is seen as a natural downturn after five consecutive years of 15% annual growth.
ElBarra revealed that real estate sales have been impacted, with a potential decline of up to 50%. However, he emphasized that collections and cancellation rates for homes have remained stable, comparable to pre-current tensions. ElBarra expressed concerns about future challenges, stating that a new crisis occurs every two years, which is why his companies maintain significant cash liquidity and rely minimally on loans.
During an interview with CNBC Arabia, ElBarra shared his perspective on the unpredictable nature of business, citing his experience since 1997. He mentioned being cautious every three years, anticipating potential issues such as financial policies, general politics, or pandemics. ElBarra emphasized that the current global situation is unstable, with challenges in China, the US, and Europe.
Despite the uncertainty, ElBarra expressed optimism that the situation will improve within two to three months. He stressed that the world cannot continue in this state, particularly with rising energy costs and inflation. ElBarra's comments come amid concerns about the impact of economic challenges on the real estate sector.
Emaar Properties has announced a new project, Eagle Hills, in the Maldives, with a total investment of $20 billion. The project aims to boost the local economy by developing an integrated tourist city with hotels, residential units, and various services. The project will be developed in partnership with the Maldivian government.
The Maldives project involves developing an island spanning 5-6 kilometers, with beaches on both sides, and constructing 5,000 residential units for local residents to address social housing needs. The project will also provide various services, including restaurants, hospitals, and schools. ElBarra estimated that the project's development will take 10-15 years, with environmental studies currently underway.
ElBarra confirmed that the project's financing will be a mix of equity, loans, and sales, in partnership with the Maldivian government. The residential units are expected to be available for sale within two months. This new project is part of Emaar Properties' efforts to expand its presence in the region and contribute to the local economy.
Key points
- Real estate sales in Egypt have declined by up to 50%
- Hotel occupancy rates in the UAE are currently around 60%
- Emaar Properties has launched a $20 billion project in the Maldives
