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Mazaya Monthly Real Estate Report -
Week 1 - March 2016
Al Mazaya’s Report can also reveal
that real estate investment in the UAE
remains resilient. This is due to the
fact that it has the direct experience
of having suffered the global financial
crisis at a time when its market was
already opened to freehold investment.
The value of Dubai’s real estate assets
declined by more than a half between
2008 and 2010 then rose again and
recovered most of their losses until the
end of 2014. This is a key indication of
the market’s ability to adapt to prevailing
economic developments. It should
be taken into consideration that the
alternation of economic cycles imposed
equitable prices of real estate products
for freehold purposes, moving the market
away from the danger of “price bubbles”.
Bahrain
The Bahraini real estate market has
passed through many successful
experiences in terms of its freehold real
estate sector. This has been, in large,
due to the kingdom’s clear vision and
ambitious plans relating to a number
of economic sectors – particularly
in banking, real estate and energy.
It is worth mentioning that freehold
projects in the kingdom are diverse,
including high-end residential projects
and luxury villas, along with medium
cost housing. It should be emphasised
here that Bahrain’s freehold projects are
part of a comprehensive, countrywide
development strategy, which provides
forclarityonthenatureof the investment
opportunities
in
the
kingdom.
Conclusion
Al Mazaya’s Report says that the
freehold experience can be diversified
to include other economic activities
and sectors, mainly the industrial
sector,
which
has
promising
prospects for attracting foreign and
domestic investment. The industrial
sector’s alignment with the economic
constituents and natural resources
of the regional countries is a major
factor here. The region’s economy
is witnessing more mobility and
changes that are aiming for economic
diversification in order to diversify
income sources, in addition to revenues
from oil and other natural resources.
Bahrain was ranked fifth on the City of
the Future Index (2015), which takes
into account the country’s economic
potential, business friendly environment,
the efficiency of human resources and
lifestyle, in addition to applicable direct
foreign investment strategies. This means
that Bahrain possesses the necessary
assets to attract foreign investments,
commensurate with the expansion of its
real estate market. This includes freehold
offerings on one hand, and the innovative
and vibrant economic patterns being seen
across all other sectors, on the other.