Mazaya Monthly Real Estate Report - August 2014
That said, Bahrain saw BD723m of
transactions in the real estate sector in the
first half of 2014, an increase of 44 percent
on 2013. Evidently, some confidence has
returned to the market, and it is expected the
performancetotheendoftheyearwillbestrong.
Transactional growth was also seen in Qatar
in the first half, up nineteen percent on the
same period twelve months previously to
touch QR25.9bn. Much good work has
been done to reduce the real estate sector’s
debt burden, which stood at QR5bn at
the start of the financial crisis and there
is now clear demand in the market for
quality projects to support population
growth and economic expansion plans.
4
The total of the real estate trading in
Mecca alone hit SR41bn in H1 and it
is believed the total value of projects
under construction in the country is
currently some SR550bn. There is plenty
of scope for investors to find deals that
promise excellent returns on investment,
particularly as momentum and confidence
builds in the second half of the year.
In the GCC as a whole, we are witnessing
a period of real estate growth that presents
the investment community with a golden
opportunity to make good returns and to
invest in the fabric of long-termGulf growth.
High prices in some Gulf states should not
be viewed as a deterrent to market entry
– the prices reflect the confidence that
is vital to continued, sustained growth.
The lessons of the past have been
learned, and today Gulf governments are
pursuing real estate projects that are not
only feasible, but that are being executed
within the legislative frameworks that have
been put in place to protect investors and
developers alike. There has never been
a better time to invest – the coming two
years will see growth that is exponential.
It is important the government does all it can to
ensure land prices do not become prohibitively
expensive,inordertokeepthemarketbuoyant.
Saudi Arabia presents possibly the best
opportunities for investors able to access
the market as the government pursues
initiatives designed to ensure millions of
new homes are built quickly, in order to
keep pace with explosive population growth.
