The diversity of real estate products and
trends in demand for these products has
thrown the GCC real estate markets into
a state of confusion and instability. The
demand for all kinds, sizes and sites of real
estate products has enabled the agents
of the real estate market to impose further
conditions which are often difficult for the
contractor to meet – at the top of which is the
values of contracts when renting residential
and commercial units which recorded high
fluctuations and variations during the past
five years. It is interesting that the real estate
market in the GCC States does not rely on
the standards and criteria to classify the
available residential and commercial units
and determine the values of the fair sales
and leasing values for all parties. This has
led to the approaching or equaling of the
lease values of all properties within the
same area or district, without relying on
indicators that differentiate between the
new and old, modern and dilapidated, type
and nature of the available services, and
the degree of infrastructure readiness, etc.
Accordingly, the GCC real estate market
has faced continuing imbalances, and
has had the largest share of instability that
deepened these challenges and increased
the difficulty of finding appropriate solutions.
Mazaya Monthly Real Estate Report
July 2014
Meanwhile, the agents of the real estate
market and property owners gained the
biggest share of revenues by virtue of the
continuing wave of demand for the real
estate units during the current period.
The continuation of current trends would
impede all real estate development plans
and weaken the levels of transparency
and justice needed by the real estate
market, thus resulting in retreat and
slowing growth rates in the coming period.
The real estate sector is the artery of
growth and activity in all aspects of life.
Continuous projects raise the pace of
growth, improve the incomes of individuals
and their living standards, and impose a
savings culture due to the improvement
of purchasing abilities as a result of the
direct reflection on the pace of registered
financial and economic activity. In order to
achieve this, the real estatemarket requires
further regulations and innovations, to
impose further controls and standards
that are concerned with raising the level of
transparency in themarket and protecting it
from unnecessary distortions and bubbles,
because it is considered a necessity
for the majority of GCC population.
2
Price imbalances on real estate
transactions lead to the adoption of
obligatory real estate reference indices
