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Positive growth in Syria expected to attract more foreign investment in its increasing real estate

Analysts say that the real estate sector has seen annual growth of 8.8% and according to Arab investors operating in Syria domestic property projects normally generate substantial returns on investment while posing minimal risks.
Syria’s real estate sector has grown significantly after reforms were implemented less than a decade ago to allow private and foreign industry participation. Many mega projects are now currently under construction in joint ventures with Syrian investors, Arabs developers and foreign investors.
Many Gulf developers are wary of markets such as Dubai where prices have fallen by up to 50% and are actively looking for new markets. Syria is proving popular because it is in the Middle East and almost all private banks in the country offer housing loans at longer payment periods, lighter collateral requirements and smaller down payments.
The industry is expected to attain higher growth as the recession slowly subsides, leading to an increase in demands for new construction technologies and building material.
The latest analysis is due to be revealed at the 16th International Exhibition for Construction  BUILDEX Syria 2010 that runs from May 12 to May 16 at the Damascus International Fairgrounds in Syria.
It is expected to show that there is an increasing demand for residential and commercial space in Syria.
‘Syria’s relatively young real estate sector remains largely untapped and offers excellent returns on investment and so investors from areas such as the Gulf and Europe are keen to enter into this expanding market,’ said Alaa Hilal, CEO of Arabian Group.
He added that the Syrian Government has pledged to earmark billions of dollars into the development of infrastructure and tourism which are major property business drivers.
Over the past three years most of the real estate investments emerging in Syria have been Arab and Syrian partnerships and this is expected to continue. The country expects real GDP growth to rise to 3.9% in 2010 and 4.2% in 2011, with over 4% of the annual income to be generated by property related activities. The Syrian government plans to establish 20 new industrial cities to encourage and attract foreign investments.