Silence isn't always golden

Developers are laying low but saying nothing sometimes reveals too much.

It has been a strange month for Middle East Developer and, at times, I’ve felt like the editor of a magazine based on an imaginary industry; or perhaps a publication for professional spies, mutes or secret-keepers.

Interviewees have pulled out, quotes have been retracted and the opinions that have been cagily delivered have, in many instances, offered little more than the vaguest of mollifying generalisations; the usual flood of press releases has slowed to a trickle.

The industry as a whole, it would seem, is saying nothing – so scared is it of saying the wrong thing at this tough time.

Contrary to the popular saying, however, in my experience within the real estate industry, no news is bad news.

A few years ago, the glut of new launches, case studies and ‘life in the sun’ stories coming out of the Sunshine State of Florida threatened to crash my laptop; when they stopped, it wasn’t long until real estate sales went the same way. Much the same pattern previewed crashes in the French, Spanish and Irish markets – the latter two made all the worse through the exceptional levels of residential property investments, as well as mortgages based on floating rates. I’m certain that, as things took a turn for the worse, Japan and Shanghai had similar tales to tell.

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For all that, ludicrously, figures demonstrate that, while we are certainly seeing a slowdown, a normalisation even, this is a far cry from the bubble bursting. I understand the reluctance of developers, financiers and legal minds to speak out and risk delivering the straw that breaks the camel’s back, but burying heads in the sand is simply not an option. Sometimes, silence is destructive, not golden.

Whatever the news – good, bad or ugly – honesty, openness and transparency lead to trust, comfort and, most importantly, confidence. And confidence is the only way forward for the GCC’s development and real estate industry; whether currently suffering or not, investor confidence is the single guarantee of a sustainable future sector.

For all the new cities, villages, worlds, islands, hotels, resorts and simple residences that this region has proven to be both pioneers and world-beaters in developing, all that expertise is in vain if your audience has no faith in your market or your product.

To that end, this issue is all about confidence. From the guarantees that strata titles give to end-users to the assurances of quality that come from prefab, pre-engineered and pre-cast materials; from the security that aligning your development with national and local government brings, to the trust installed in investors through developing a project as well thought-out and as necessary as KSA’s Knowledge Economic City.

The GCC have produced some of the planet’s most dazzling developments, luxuriant launches and prodigious projects. Now’s no time to be shy.

Matt Warnock
Editor