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Mazaya Monthly Real Estate Report -
Week 4 - November 2015
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Middle class housing that is robustly
built, Al-Mazaya Report believes,
will come to dominate investor
enquiries not only into Dubai but
throughout the region. Declines in oil
price, we predict, will only make this
opportunity more attractive – bricks
offer security that few other assets
can match in a politically stable region.
While Dubai sees short term value swings
in the market – the dreaded boom and
bust that allows savvy investors to find
bargains – over the long-termwe continue
to see prices tick upwards, a trend we
expect to continue for the long-term. As a
result, we believe international investors
will continue toflock toDubai toputmoney
into projects, particularly those that are
aimed at underserved market segments.
Market data suggests that by 2020,
when Dubai hosts the World Expo, some
6,000 new villas are required and 24,000
apartments to meet projected demand.
A final point to note is that middle class
housing is less expensive to create than
luxury housing, and therefore requires
lower levels of investor liquidity to be
sourced at the outset – another factor
that makes it attractive to developers.
Al-Mazaya Report is optimistic regarding
the prospects for the middle class sector
of the market not just in Dubai, where
we see it thriving, but throughout the
wider Gulf region. These are exciting
times for GCC economies – investors
can capitalise by servicing the economic
miracle that is driving all growth:
the upwardly mobile middle classes.