Demand for real estate in the Gulf in 2013
was stronger than had been predicted by
many market analysts who had forecast
a continuation of the slump seen in 2012.
The resurgence of demand was a vote of
confidence from the market in the political
and economic stability of the Gulf states in
the wake of the global financial crisis and
the ructions of the Arab Spring. High rates
of return on real estate investments lured
buyers and developers throughout the
year – implying widespread confidence
in the sector’s sustained return to health.
All indications were good: increases
were seen in the size of investments,
the number of buyers coming to market
and the number of real estate projects
receiving the green light for development
across the Gulf. Furthermore, sensible
government policies stimulated market
demand-side and supply-side activty.
Mazaya Monthly Real Estate Report
January 2014
This Al Mazaya Holding Company weekly
report notes that demand for Gulf real
estate in 2013 outstripped supply in most
countries – even in the residential sector
where supply levels were high. Indicators
show demand and investment levels
were at their highest since the start of
the financial crisis in 2013. A report by
the Kuwait Financial Centre showed that
Kuwait had performed particularly strongly
as a result of high levels of income for
residents and increased confidence
in the real estate sector combining to
attract buyers to market. Kuwait was
seen as one of the safest havens in the
world for real estate investment in 2013,
the report said. It added that demand for
residential real estate units in Kuwait,
Saudi Arabia, the UAE and Bahrain had
outpaced supply, but supply had been
greater than demand in Oman and Qatar.
2
Gulf real estate 2013
performance beats analysts
forecasts as demand returns.
