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Mazaya Monthly Real Estate Report -
Week 2 - JULY 2015
Real Estate Competitive Investment Modules help
GCC Market to avoid Price Bubble Threats
Market pressures and the challenges
facing the World Economy have not
been far from negatively affecting RS
project expansion. Yet, the financial
and economic updates emerging on
the regional and global levels have
not prevented RS plans and projects
from proceeding as initially set. GCC’s
ability to maintain the safe levels of
expenditure on development projects
has significantly supported the
growth of all sectors. In the meantime,
the economies of these countries
maintained
similar
momentum
in production and service areas
regardless of the drop in oil prices.
RS activities revealed regular project
proposals are relying on feasibility
studies while targeting particular
social categories. The banking sector
is also keeping regular cash flow
to finance available opportunities.
Relevant regulations simultaneously
approved had a significant role in
maintaining the RS sector stability
and continues to remain attractive.
RS Market Flexibility:
Al-Mazaya Holdings Weekly RS Report
believes the regular RS momentum
taking place in the first midterm this year
regardless of the upturns in oil prices
and markets signals the strength of the
RS sector supported by the projects
recently launched. Still, the current scene
reflects less efficiency of the RS sector
responding to the prevailing supply and
demand forces since the drastic decrease
in oil prices - reaching 60% last year - have
not unfortunately shown any reduction
on RS product prices of all categories
whether in sales, purchase or lease. This
is due to RS owners upholding the same
prices prior to the drop in oil price and the
increase in construction cost and political
turmoil of the region. These elements in
total contributed to less transactions
taking place in the GCC RS market, while
the only element remaining constant is the
open appetite of individuals to purchase
all types of residential units given the
enduring finance and banking facilities
tailored to meet their needs, which helped
tokeep the regularRSmarket performance.