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Mazaya Monthly Real Estate Report -
Week 1 - March 2016
In this context, it should be highlighted
that the increase of freehold shares in
new real estate projects has implications
that strengthen a company’s status in
the market, maintain the attractiveness
of its projects and ensure its continuous
activity. This will ultimately be in
the interest of wider economic and
financial activities in the countries
where investments are taking place.
Al Mazaya Holding Company’s Weekly
Real Estate Report points out that the
success of all investment plans related
to the real estate sector depend greatly
on key elements in the market which
control the level of attractiveness
for domestic, regional and global
investors. The standard of development
enjoyed by all other economic sectors
is influential in the success of long-
term investments, mainly the plans for
the extension of freehold opportunities
on new real estate projects.
Qatar
Al Mazaya’s Report states that freehold
plans and laws in the Qatari real
estate market require the expansion of
investment rules and procedures so as to
facilitate freehold ownership of property
by Arab and foreign investors. That
is because the freehold law, currently
in force, only allows full ownership to
GCC citizens, but not others. The law
does, however, provide special facilities
and privileges for long-term leasing,
for a period of up to 99 years with a
renewable option for a similar period.
UAE
The
mechanisms
of
freehold
ownership cannot be addressed
without mentioning the success stories
achieved in the UAE, and in Dubai
in particular. Indeed, all current and
future plans that other GCC countries
are seeking to carry out are done so
with reference to the direct experience
of Dubai. The emirate clearly has
a lead on neighbouring regional
freehold real estate markets, having
succeeded in attracting all types and
categories of international investor.
With that in mind, it should be said
that the level of development recorded
in the region has not yet equalled that
of the Dubai market, which recorded
significant rises in demand over the
last two years, before beginning to
recede slightly in 2015. Many see this
as having a direct relation to the fall
in oil prices and its consequences
on the liquidity available for
investment, as well as having been
affected by government spending.