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The shortage of medium priced housing
and the recovery of low cost airlines,
as well as the increasing demands of
travelers, has led to a growth in demand
for medium market housing. Owing to the
good investment opportunities they offer,
as a result of the low costs of building
and operations, as well as their ability
to realise high returns, economy hotels
and medium level housing remain the
smartest areas for investors to consider.
Al Mazaya’s Report emphasises that
the increase of the middle class in
the region – and the world at large –
is one of the most important sources
of demand for affordable or low
cost housing. The middle class is
expected to be double its current size
by 2030. Therefore, this economic
class should be targeted through the
diversification of available options,
such as residential developments
and more medium cost hotels. Al
Mazaya’s Report has also identified
that GCC countries have become more
qualified in terms of economic tourism
and their ability to benefit from it.
Available data currently indicates that
there are around 40 airlines in the Middle
East. FlyDubai alone acquired 29 per cent
of the total of 37 million seats during
2014, meaning the sector achieved high
growth rates of approximately 35 per
cent, over the previous year. The aviation
and tourism sectors benefit from the
growth of travelling consumers, which
– in turn – will also lead to the rise of
future demand across other sectors.
It should be highlighted that there are
great prospects for this sector if it can
effectively partner with the regional
and worldwide air transport market.
It should be emphasised here that
low cost airlines have dramatically
influenced the region’s tourism
industry and could open connections
to the region from many other cities
around the world. This should meet the
needs of the growingmiddle class in the
growing economies of Asia, Africa and
other countries and cities worldwide.
Economic
projections
indicate
that the Gulf Region’s hospitality
sector will be worth an approximate
USD 20 billion, in 2016. The hotel
occupancy rate in some cities is also
estimated to reach over 80 per cent.
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Mazaya Monthly Real Estate Report -
Week 2 - December 2015