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Mazaya Monthly Real Estate Report -
Week 3 - October 2016
US realty market boasts fiscal stimulus
packages that ensure high yields for
GCC businesses, including individual
and corporate investments. On top
of these advantages comes the high
demand for property as flexible
legislations ensure its sustained
attractiveness under all economic
circumstances. Moreover, the open
economic policy adopted there plays a
pivotal role in drawing different kinds
of investments from all over the world.
According to the report, the US has
several big cities that enjoy a competitive
edge, thanks to their diverse and huge
natural resources, principally New
York and Miami, which are considered
among the world’s largest cities that
attract foreign investments, including
those coming from the Gulf region.
Annual real estate investment yields
as high as 8 per cent have been posted
there, jumping up to 12 per cent in
some years, according to the report.
The report attributed the buoyance
of the US realty market to its resilient
set of rules and regulations. It
indicated that office sales and
rentals account for a greater share in
both local and foreign investments.
Industrial property are increasingly
attracting
foreign
investments,
pushing their prices by 6 per cent,
which resulted in the need to develop
more projects to meet the current
and expected high rate of demand.
The report also noted that growing
employment rates during 2016, investment
resilience, high business yields, economic
security and political stability are all
positive factors that play a major role in
increasing demand on commercial and
office spaces, noting that demand vastly
outstrips supply in many major locations.
The report expected that the future
Arab and Gulf real estate investments
will be negatively impacted by
candidate Donald Trump winning
the US presidential elections, with
the existing investments to be less
affected thanks to their growing returns.