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Mazaya Monthly Real Estate Report
Week 1 - January 2016
Al-Mazaya Report: Real-Estate Assets are Safe from
Regional Tension in the Short-Term
Al-Mazaya Holdings Weekly Real-
Estate Report states that all sectors will
be affected by the coming economic
challenges to some degree, especially
given the interconnectedness of
Gulf economies, where investment,
particularly into real estate, can come
from any country in the region. The
smart investors, we believe, will be
those who are able to remain active
in sectors that are best positioned
to ride out the storm. We predict the
Gulf real estate sector’s fortunes
will be dependent on the impact of
economic uncertainty on people’s
savings and on their perception of Gulf
countries as politically stable. For this
reason, it goes without saying that
conflict within the Gulf would have
a deleterious affect upon regional
real estate confidence, not least
because it would see investors scatter,
but also because the consequent
sell off would exert considerable
downward pressure on the market.
These are uncertain times for the global
and regional economies. A number of
factors make long-term forecasting
difficult, and optimism seems in short
supply. Certainly, there is much to keep
governments, bankers and investors
awake at night. How, for example, will the
falling oil price affect markets? Which
sectors are likely to suffer the most
over the coming months, and which the
least? Where can money be put to keep
it secure? How will Gulf countries that
rely on hydrocarbon revenues continue to
finance infrastructure spending programs
and
keep
expanding
populations
happy? And if populations become
unhappy, might the result be conflict?