Académique Documents
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March 2010
Alaa Alazem Jammal has acquired six years of professional experience in Corporate Finance field
through her career as Financial Analyst in a major Telecom Corporation and a financial services firm
in Syria. Her skills include and not limited to: Developing budgets, financial reports & projections;
Assessing risks of different projects & companies; Interpreting and analyzing accounting & financial
data; and Utilizing computer software for analysis, reports, presentations, and archiving. In addition,
she has conducted several business plans, valuations, and financial reports for different clients in
several industries.
Email alaa.alazem@gmail.com
Before discussing the Retail sector in Syria, we have to explore the current situation of real estate
and construction industry. According to Oxford Business Group report about Syria in 2009, the
supply shortfall for residential, office, retail and tourism real estate has fuelled both a surge in
construction and a rise in prices. For the residential sector, Syria’s population growth rate of 3%,
coupled with a large-scale influx of Iraqi refugees, contributed to housing shortages. The residential
market has traditionally been driven by the public sector and despite opening up to private
investment; the state is still very much the dominant player. By far the majority of demand is from
the affordable housing segment, although private developers mainly focused on the luxury projects
in 2008. A number of projects are in the works, many of which seek to offer an escape for wealthy
Syrians looking for homes outside Damascus. New developments include the Palmyra Real Estate
Development’s Jasmine Hills and Emerald Hills, the projects in Yafour and the Saudi Binladin
Group’s Palm Village in Sabboura. The residential market forms the backbone of Syrian real estate,
but there is also room for development of office and retail space. The shortage of office space has
made Damascus the eighth-most expensive city to rent in worldwide, but new projects should help
to add supply and bring down costs. As the economy has begun to open up retail has also become
an important segment, with increasing numbers of foreign brands entering the market. Consumer
demand is strong and a number of new mall projects are in the works at present.
Although real estate prices were estimated to have fallen by up to 20% in the second half of 2008.
However, the market faced a shortage in liquidity and of cash inflows from expatriates and from
Gulf countries in 2009. After a boom in demand in the period 2006-2008, the market slowed down
sharply in 2009 with large supplies and little demand. Some areas still posted price increases; others
saw a decline, and some saw prices remain stable. The government has made significant progress in
its efforts to improve the investment climate for real estate development, including reforms that
allow developers freer range over their master plans and zoning, but obtaining all the necessary
permits and licenses to start work can still be time consuming. Rising labor costs and volatile raw
materials costs have also put some pressure on the sector in recent years.
Despite of the global financial crisis, no cancellation of any mega project was announced in Syria.
However, some delays are expected. The below table shows the main mega real estate development
projects going on currently:
City GLA
Abu Dhabi 655,000
Amman 200,000
Beirut 550,000
Cairo 600,000
Damascus 100,000
Doha 520,000
Dubai 2.5 m
Jeddah 1.9 m
Kuwait City 500,000
Manama 590,000
Muscat 300,000
Riyadh 1.2 m
According to Cushman & Wakefield, an international real state consultancy, Damascus is the 3rd
most expensive retail rents in the Middle East. It is also the eighth most expensive city in the
world for office rental cost. The report expected rents in Damascus to increase in the medium to
long-term because of a lack of supply. The below table shows the average retail rent cost in
several malls across the Middle East:
Eighth Gate Emaar IGO Souk, food court, *80 m *30,000-50,000 Beirut Road under 2012
Mall cinema complex 55,000 construction
Mövenpick Toumeh Tourism Complex 30 m Kafarsouseh Signed off 2010
Hotel and Mall International 49,000
recently
Damasquino 3 Businessmen 52 shops, 10 food 30,000-50,000 Kafarsouseh Open
Mall court, 4D cinema, 5 40,000
restaurants and cafes
furniture section,
Entertainment and
hypermarket
Cham City 85 shops, gym, 13 30,000-50,000 Kafarsouseh Open
Center restaurants, 50,000
entertainment and
hypermarket
Town Center shops, restaurants, Syria-Jordan Open
entertainment and 35,000 highway
hypermarket south of
Damascus
Skiland shops, restaurants and Airport Open
entertainment 10,000 Road
Queen Center shops and restaurants Mazzeh Open
Salam Mall IBDAA 200 shops, a food 40 m 45,000 40,000 – 50,000 Damascus August 2010
Investments court, a ski slope, a International
large interior Fairgrounds
entertainment place as
well as a parking for
some 3,000 cars
Concord Concord Al-Sham hypermarket, 80 m Dareyya, 2009
commercial International furniture store, 40 150,000 near the
complex Investment outlets, health center, highway
Company a gym, roof pool, and leading to
a spa, chill out lounge Jordan
and roof restaurant
Doha Mall Al Baraa Real Shops, a bowling 17,500 -35,000 Saydnaya- 2010
Estate & centre, 3 cinema 14,000 Maaraba
Development theatres, ice skating Highway
area, a children
recreation area,
Supermarket
Jasmine Mall Al Kadri Industry Shops, cafes and 17,000 -20,000 motorway early 2010
and Trading restaurants 3,000 leading to
Company Daraa, next
to Town
Centre
Orient Trade Abou Arab Haider specialized in 25,000 -35,000 motorway Sale of units
Tower Group furniture and home 22,500 leading to
appliances, office Daraa
spaces
Dimas Center Al Ruken for Real Wholesaler Market, 150 m 154,000 30,000 – 50,000 Dimas 2010 2014
Estate shops, food court and
Development restaurants, bowling,
wood skating,
entertainment,
business center, SPA
e. Damasquino Mall
g. Salam Mall