Real estate still remains an investment option
Developers, investors need to factor in changes — Shuaa CEO
Jassim Al Seddiqi is not one to give up on real estate investments just because a pandemic has wreaked havoc on the sector’s prospects. But he has no issues in saying that all future exposures to real estate need to factor in the Covid-19 in some form or the other.
“Developers — and investors — who understand what the post-Covid wave of buyers and renters are seeking in home designs will emerge as the winners,” said the CEO of Shuaa
Capital. “This is a learnt lesson that we look to embody across our real estate companies.
“We assessed how this pandemic has changed the way people rent and buy real estate, especially after experiencing working remotely from home.
Bullish outlook
“I have always been — and continue to be — bullish about the prospects of real estate in the UAE despite the pressure on prices, which is a correction that all markets go through. [But] like other firms, real estate companies need to diversify their funding sources through alternative tools and debt capital market activities.”
In recent years, Al Seddiqi, and the entities he heads, have built up quite a sizeable presence in property. There is a signature project in London, at one of the fanciest locations in a city replete with them. There’s also a burgeoning presence in Saudi Arabia and in Eastern Europe.
“We have a presence in London through Northacre which owns high-end residential developments in central London,” he added. “And in Saudi Arabia, through Shuaa SA, which invests in hospitality and megaresidential projects. Thanks to the diversified portfolio, we can manage risks.”
When the pandemic struck, and it became clear that no economic activity can distance itself, Shuaa was among the handful of private entities to come up with a package for small businesses to sign up for.
But wasn’t the SME space far removed from Shuaa’s usual comfort zone? “Our private equity business is led by a different philosophy and driven by our strategy to deliver longterm value,” he said.