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Week 3 - November 2015
Gulf and European real estate long-term prospects
remain strong, despite uncertainty
The real estate sector is often an
economy’s single largest generator
of wealth. Not because it creates the
most multimillionaires, but because it
underpins every other sector, it creates
large-scale employment opportunities
and it can bring in large volumes of
foreign investment. Managed correctly,
the real estate sector is a country’s
most formidable engine of growth.
Of course, the real estate sector is
susceptible to the fluctuations of regional
and global economies – it requires large
injections of liquidity to get projects off
the ground, and at times when investors
are cautious, funding becomes harder
to source. Likewise, during periods of
economic uncertainty, the market for real
estate, like any other market, becomes
less demand-driven and less vigorous,
inevitably
tempering
enthusiasm
to commence developments. It is
therefore imperative that governments,
in the Gulf and elsewhere, do all they
can to safeguard as far as possible
their real estate sectors from the
consequences of economic downturn.
Mazaya Monthly Real Estate Report