5 / 5
5
Mazaya Monthly Real Estate Report -
Week 1 - March 2016
It should be taken into consideration that
freehold projects have had a direct role in
the development and introduction of more
luxury real estate projects. They have
also helped to develop the hospitality
sector. This is because the attraction of
foreign investment must be accompanied
by the development of a wide range
of lifestyle concepts and values that
go with a real estate development –
namely its plans, facilities and location.
Al Mazaya’s Report emphasises that
the
diversification
of
investment
opportunities in key real estate markets
around the world will pressurise the ability
of the region’s countries to compete
in the present and coming period.
Targeting foreign investors is now a
priority for a great number of GCC
countries, having made medium
and long-term plans exactly for this
purpose. This means that freehold
and foreign investment markets
face many challenges that require
qualitative solutions and plans that
suit the nature of demand, investor
objectives and government plans.
Competitiveness is still there and the
factors for success are available to
many of the regional markets for multi-
sector investments, in particularly the
real estate products that are subject
to freehold laws and regulations.
Since the recent global economic
crisis, the region’s markets have
managed to avoid the formation
of economic “bubbles” in the real
estate market, which means that
markets have become more mature
and are able to retain interest from
foreign investors, in the long term.
Al Mazaya’s Report says that the
current level of demand in the majority
of the region’s markets is within safe
limits, while the demand for freehold
projects is classified as good, in view
of the current prices, yet it cannot
be relied upon to realise significant
growth rates due to the number of
projects and prices currently available.
Al Mazaya’s Report highlights the fact
that the region’s markets have significant
investment prospects in the real estate
and other markets, since they are secure
havens for diversified investment. This
comes in light of an increasing desire from
investors to place their funds in tangible
assets with a low cost debt, in addition to
the continued government attempts to put
an end to the rise in prices and prevent
the recurrence of a 2008-style recession.