G U E S T COLUMN
dle East doesn’t work so well here.” He adds, “There are a host of brands that would like to open in Muscat, especially those with a food and beverage offering which would be so well suited to the atmospheric boardwalk locations in some of Muscat’s beautiful beachfront locations. The reason why they haven’t been able to launch is due to the lack of dedicated purpose built retail developments in the capital area.” Retail developments of the 1980s and 1990s are now dated and do not reflect the modern shopping needs for either operators or users. Gladwin adds, “There are plans to build out smaller, more focussed and dedicated retail destinations in Muscat, not anchored by food and hypermarket operators, which offer a different experience to the discerning and currently frustrated lady shopper who still finds that the only way of resolving her fashion frustrations is to travel to Dubai, at a cost.” With online shopping and the flexibility provided by the internet, the traditional shopping experience here may need to re-invent itself to offer the customer what he needs, recognising that a shopping experience is now a leisure experience too.
Scenario for construction companies, material suppliers and associated professionals Local sources say that material prices are now largely stable, with inflation running at a maximum of 3-5% per annum. Cement prices may rise at this level this year, with other materials largely being stable. Stockpiled materials have been used, and the large contracts being let by the government have underwritten and stimulated the market, allowing businesses to plan ahead with some certainty.
Dubai adversely affect the region, on the global stage, but within the region, Oman is well placed and continues to move ahead. More sophisticated analysis of actual demand, enabling new projects to be better planned, will also create more successful and mature developments in all real estate sectors.
Being paid for work done has been a lifeline – in Dubai, there are lots of disaster stories where this hasn’t happened, and many businesses, if they managed to survive, are 50-75% down.
“Work has definitely picked up this year over last,” he comments, “with the government work making up the bulk of tenders and enquiries”. He adds “Salalah is adding to our workload too, where we have recently bid for a 500 unit social housing scheme and an office building. It seems that the Dhofar region is attracting investment, and we are considering opening an office there.” This is an encouraging sign. Driver Consult has recruited five new staff this year in Muscat, demonstrating real signs of improvement in the professional services market.
Zane Hedge, Associate Director of multidisciplinary construction consultancy Driver Consult, has some interesting thoughts.
2010 looks much more healthy than 2009 and there is a cautiously positive vein to the real estate markets. The continuing difficulties in
Nick Smith is an independent property business advisor. He can be contacted on nicksmith4@gmail.com
22 OER DOSSIER March 2010
If the government can couple this with easier entry into the markets for potential investors, this will be a great stimulus, helping to bring about a step-change in the delivery of new schemes throughout the country.