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Mazaya Monthly Real Estate Report -
Week 1 - October 2016
On the Bahraini Market, the Al Mazaya
Holding Report indicated that the prices
have not been affected by the sharp
plummeting of oil prices though the
country is largely dependent on oil
revenues. The real estate values exhibited
tangible growth in the first half of this
year, with office rentals remaining stable
during the same period. In the meantime,
a rental price growth was posted in many
locations, thanks to the robust supply-
demand mechanism, which is a direct
result of the Bahraini Government’s plans
to provide Bahraini nationals with decent
accommodation. These plans fructified
into
infrastructure
developments
aimed at strengthening growth rates
across different economic platforms,
primarily tourism, trade and industry.
In Qatar, a 25 per cent fall in prices
was recorded since the beginning
of the year due to real estate
oversupply, the report indicated.
Expatriates
have
multiple
and
competitive apartment rental options
in surrounding areas within the
capital’s proximity, with an increasing
number of residential units being
pumped into the market to meet stable
demand levels. The considerable
amount of liquidity and the value of
ongoing
government
enterprises
worth more than QR 260 billion play a
significant role in keeping the market
equilibrium in times of recovery
and low economic growth alike.
The report termed the current real estate
price fall in Qatar as a self-correcting
tendency, following the continuous price
hikes witnessed all over the past years.
Such a decline, according to the report,
is likely to beef up demand across all
real estate categories, including those
currently in supply as well as those to
be marketed over the coming period.
In Dubai, the report said that price
indications are more realistic and
rather reflect, to a large extent, a natural
supply-demand mechanism, fair rates
and competitiveness. This is attributed,
according to the report, to the rich
variety in demand sources and to the
number of real estate units available.
The report added that the rules and
regulations governing the official real
estate sectors play a fundamental role in
maximising real estate yields, ensuring
more stability and growth, thanks to the
government’s constant follow-up and
update of these rules and regulations.