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Mazaya Monthly Real Estate Report -
Week 4 - November 2015
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All developing, successful economies
seek to create an upwardly mobile middle
class – indeed, nothing generates wealth
as effectively as a middle class that feels
it is in possession of plentiful disposable
income. GCC societies are today seeing
the emergence of the type of upwardly
mobilemiddle classes that have driven the
growth of China and India over the last two
decades. The real estate sector is striving
to meet middle class demand throughout
the GCC, and Al-Mazaya Report believes
that over the coming two years we will
see many developments that are targeted
directly at middle income earners.
Al-Mazaya Report points out that there
is significant demand throughout the
Gulf for housing to serve themiddle and
lower income ends of the market, and
investors would do well to investigate
the opportunities this section of the
market affords. Many Gulf countries
have oversupplied demand at the top,
luxury end of the market. But now, as
Gulf economies continue to develop,
is the time to look lower down the
demographic scale to find value.
If we take Dubai as a bellwether for
the rest of the Gulf real estate markets
– which, historically, it has proved to
be, demonstrating the international
appetite for investment into the Gulf –
already we are seeing much activity in
the middle class section of the market.
More and more, we see that investors
are buying properties that will offer
consistent long-termreturns by serving
a skilled workforce that grows by the
day. Throughout the Gulf, leaders
stress the importance of cultivating
a knowledge economy – the result is
confident andprosperousmiddle class.