4 / 4
Mazaya Monthly Real Estate Report -
January
2015
Current Rates:
According to Mazaya Report, the real-estate
exchange trends are nearly restored and
consistent to actual demand and supply which
are active towards most real-estate products
all over the region. It is quite evident that
the increasing rates of real-estate lease and
sales do not serve the interest of all parties
related to the sector since the exaggerated
rates will not be operational to the economy
without relying on a solid ground of quality
services or products, especially that real-
estate projects require many years to finalize
or yield returns, whereas most financial and
economic indicators are annually calculated,
and development plans are formulated on
a priority basis. As a result, current trends
can't continue to hike while growth rates
are fluctuating and the region continues to
encounter several challenges. Within this
environment,allconcernedpartiesareurgedto
control their prices and other trends next year.
4
Energy Sector leads the way:
The Energy sector will always mobilize
economic activities and investments in
the region, therefore more upcoming
investments should be sustained therein
according to Al-Mazaya report. Additional
investments in energy help the GCCs
to lead the oil producing countries and
protect their market shares which are
mostly dedicated to supporting public
expenditure. The real-estate sector will be
mostly favored by additional investments
in energy given the direct correlation
between public expenditure and the
overall boom caused to multiple national
sectors. The public attention given to
the industry supports the budget and
creates tangible success by diversifying
income sources. Data revealed shows
the GCCs will continue to support
energy projects -whether conventional
or renewables they strive to serve their
long-term
development
strategies.
Stability and Fluctuation Trends in
Financial Markets:
Economic momentum, stability and
growth rates reflected in the financial
market performance all over the region
have significantly attracted foreign direct
and indirect investment. This impact
aggregates when investments travel
amongst sectors. Stability and growth in
financial markets for example avail more
funds to investment, while higher returns
in this market avails funds for other
sectors especially real-estate. Similarly,
momentum created in the stock-market
is a direct result of real economic activity,
which ultimately boosts investments in
real-estate as well given the interaction
and increase in funds available to major
sectors in boom situations. On the other
hand, the state of fluctuations and instability
revealed in the stock market during the
fourth quarter show a gradual leak of funds
towards more stable investment funds
among which real-estate will be favored.