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The declining oil price will likely
affect the region’s construction sector
negatively, putting the brakes on some
government short-term and long-
term infrastructure and real estate
spending.
Also,
non-government
real-estate players will stay on the
sidelines over the coming months
as falling oil prices inevitably mean
falling costs of construction materials.
The market will wait, naturally, for the
cheapest prices. While the prospect
of a correction hangs over the
industry, it is normal that it will slow
– buyers, in particular, will wait to see
if better value can be found tomorrow.
Mazaya Monthly Real Estate Report
Week 1 - APRIL 2015
Al Mazaya Holding weekly report points
out that while the construction sector
slows during the downward movement
in the price of oil – and diesel – cheap
prices will in time prove to be good
news, spurring developers and buyers
alike into action while prices are cheap.
While costs – of materials and diesel
– are low, profit margins can be high.
Al Mazaya: UAE and GCC construction sector’s
prospects strong in 2015, despite oil price falls
It goes without saying that profitability
depends on demand remaining
strong during the current period, and
indications suggest this is the case.
Consequently, we expect the region’s
construction companies to deliver
strong profits during this quarter