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Mazaya Monthly Real Estate Report -
Week 3 - November 2015
Al-Mazaya Holdings Weekly Real-Estate
Report believes that real estate markets
in the Gulf are often unnecessarily
negatively affected by market analysis
that fails to take into account the realities
on the ground, instead putting too much
emphasis on projections and indices.
While it is useful to look at current levels
of demand, it is also important to consider
future levels of demand as an indicator
of the probability of market surplus. The
market can be too easily spooked by
analysis that is overly pessimistic due
to consideration of too few variables.
While it might be easy to look at the
market in a negative manner based on
considerationonlyof,say,prevailinglow
demand, taking a more long-term view
– factoring in, for example, the social
changes the Gulf region is undergoing,
considering demographic pressures
exerted on the market by rapidly
growing populations – leads naturally
to optimismabout the direction inwhich
the Gulf real estate sector is moving.
Al-Mazaya Holdings Weekly Real-Estate
Report points out that Gulf real estate in the
last fifteen years has been seen as a highly
attractive asset for wealthy individuals
from all over the world, not only from the
region. During the worst months of the
global financial crisis, we naturally saw
money that had been tied up in Gulf real
estate released and repatriated, causing
regional markets to head south. However,
as the global economy has recovered, we
have again seen large volumes of liquidity
from all over the world ploughed back
into Gulf real estate. This has been an
important factor in buoying the market’s
confidence, creating optimism that has
become self-fulfilling. Ultimately, the
fortunes of foreign economies underpin
the health of Gulf real estate markets.