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Al Mazaya: Not every rise will lead
to demand-pull inflation
Falling Property Prices Delay Investment and Urban Projects
The Gulf region’s property markets
could be affected by myriad challenges
in the current and upcoming periods,
including a potential state of recession
that is likely to trigger a price fall.
In its weekly real estate report, Al Mazya
Holding predicted that the ongoing
and upcoming pressures might reflect
negatively on realty investments as
many of the real estate development
companies
and
individuals
in
the region would wait for further
declines in land plot prices before
pumping money into the markets and
launch new construction projects.
Starting with the Dubai realty market,
the report mentioned that 2015’s price
plunges continued in 2016 as well,
reaching an average of 10% as a result
of the financial and business pressures
the Gulf markets have gone through.
The continued property demand from
individuals and developers led to a
price plunge as growing investment
opportunities increased demand and
pushed up the number of property
projects targeting the limited-income
segments of society. Furthermore,
the plot prices in Dubai recorded a
remarkable rise of approximately
15% in commercial and residential
plots sales made for the purpose of
investment. The report also cited the
50% hike in the prices of land plots
adjacent to Dubai Water Canal. In the
meantime, commercial plot prices
in Abu Dhabi dropped by around
10% since the beginning of the
year until the end of the 3rd quarter
Mazaya Monthly Real Estate Report
Week 3 - December 2016