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Mazaya Monthly Real Estate Report
Week 1 - May 2016
Al Mazaya: The time is right to focus on projects
targeting middle-income buyers
In Al Mazaya Holding’s Weekly Real
Estate Report it is noted that the rise in
building material prices to unjustified
levels has had an adverse impact
on real estate activity in the region
and has added further challenges to
demand factors – making it difficult to
reduce prices of real estate products
given the high costs. Any reduction in
prices to meet the financial capacity of
investors or property buyers will cause
the developers to sustain substantial
lossesor reductions in theirprofit ratios.
The importance of building material costs
stems from their considerable impact on
the real estate market and investments
related to their production. This in turn,
impacts on the cost of real estate units
– in terms of both sales and leases.