Delayed payments hurt GCC developers; mergers likely: expert

Delayed payments hurt GCC developers; mergers likely: expert

"The risk facing the real estate market is the inability of customers to pay the instalments, thus causing a delay in the construction work. As a result, developers may require a shorter period for the instalments which eventually leads to an oversupply of units, thereby creating a negative business cycle,“ Murad said in a statement."Developers are eyeing a reduction in unit prices by as much as 25 percent and company mergers to minimise business risks and significantly increase the ease of doing business,“ he said.Murad's Saudi-based development management service company works closely with developers by providing engineering, design and construction services for real estate projects in the Gulf, and its portfolio includes large-scale government-funded ventures in the kingdom. The firm had won a contract with Saudi Arabia's National Housing Company