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Al-Mazaya Holdings Weekly Real-Estate
Report believes the Gulf real estate
markets are distinguishable from other
global real estate markets by virtue
of the stratospheric growth they have
undergone in recent years thanks to
ambitious government spending plans
intended both to keep pace with rapidly
increasing populations and to attract
direct foreign investment from all over
the world. The real estate sector has
been a key economic driver of all GCC
economies in recent decades, perhaps
second only to the hydrocarbon sector
as the creator of most significant value
for the region’s governments. It is no
surprise,then,thatGulfleadersrecognise
the importance of a thriving real estate
industry and the opportunities it creates.
Currently, across the region, we see
a wide variety of real estate projects
being discussed – residential,
tourist, industrial and commercial
projects are all currently available
for investors looking to buy into the
Gulf real estate story. The question
is, given the slowing of regional
liquidity in recent times, do Gulf
investors have appetite sufficient
to get the projects off the ground?
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Mazaya Monthly Real Estate Report -
Week 3 - October 2015
In recent months several Gulf
governments have enacted regulations
that have bolstered real estate markets,
particularly with regard to the creation
of residential units. New rules have
contained inflation rates, minimised
the need for discounts and addressed
the problem of oversupply in a time of
weakening demand. There is still much
work to be done to further stimulate
markets, but it is important we as an
industry appreciate the efforts made
already by visionary leadership. In some
ways, periods of difficulty can have a
positive effect on a market – forcing it to
become more transparent and efficient,
and getting rid of slower players.