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The Gulf realty sector has been
experiencingawaveof fluctuationsover
the past economic period. Unsteady
prices of housing units and projects,
low cash flows and mounting pressures
exercised by state departments on real
estate companies and investors are
cited by Al Mazaya Holding to be the
main reason behind new challenges.
A report released recently by the
company said that Gulf countries
and investors now need to adopt
structured measures robust enough
to bolster the Gulf property sector.
They need to steer clear from being
selective in their long and mid-term
investment plans – rather, they should
focus on monetisation policies to avoid
losses and mitigate potential risks.
The report, which was mainly focused
on the Saudi realty sector, said the Saudi
government’s plans and investments
adopted hitherto have not yet fructified,
nor have they managed to bridge the
yawning gap between supply and demand
due to the vast extent and magnitude
of the Saudi market where demand for
housing units and villas is on a spiraling
rise, significantly outstripping supply.
Al Mazaya: Despite Mounting Economic Pressures,
Saudi Realty Market Remains on Track
Mazaya Monthly Real Estate Report
Week 4 - October 2016