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There is a remarkable discrepancy
between the region’s markets with
regards to budget deficits, spending plans
and investment priorities as well as the
volume of contracts being carried out. It
highlighted that there has been a 15%-30%
slump in sales witnessed by construction
material markets all over the region.
With regards to the values of real
estate transactions and sales in 2016,
Saudi Arabia recorded the highest
slump in the value and number of real
estate transactions made in 2016 – an
estimated 23%, which equals SAR 281
billion, compared to SAR 368 billion
in 2015. The report attributed this to
the decline in residential land values
which hit around 32% in two years only.
Mazaya Monthly Real Estate Report -
Week 2 - January 2017
In Dubai, real estate transactions were
valued at AED 113 billion by the first half
of 2016. This amount is attributed to the
set of laws and regulations endorsed
in 2016 that played a significant role
in reducing the value of transactions
and sales, with lands and residential
property
transactions
dominating
the entire real estate landscape and
absorbing most of the cash available.
Rental rates reached their climax in
2016 and then dropped, owing to a
number of factors, atop of which were
the falling demand levels due to the
unstable economic conditions and
decreasing investments allocated
to major economic platforms. This
indicates that several Gulf states
have, as a result, started a correction
policy to bring things right back
to their previous normal course.