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Gulf real estate outlook remains strong
despite low oil prices
While Gulf economies strive to
diversify away from reliance on the
income generated by the hydrocarbon
sector, it is important not to lose
sight of the fact that oil or natural gas
remain crucial mainstays of almost
all Gulf economies. With this in
mind, it is natural that many analysts
consider what a depressed oil price
will mean for the economies of the
countries that comprise the GCC,
and, in particular, for Gulf real estate.
Demand for Gulf real estate remains high
– the region’spopulationboomcontinues
apace, and the need for residential
property does not fall away because
the oil price weakens. The danger, of
course, is that with lower oil prices,
liquidity flows through the region suffer,
meaning income for citizens to invest in
property, and, potentially, less appetite
by government for investment in large-
scale infrastructure mega-projects.
From the developer’s perspective, it
is natural that during times of reduced
liquidity the focus on efficiency is
heightened. Al-Mazaya Holdings Weekly
Real-Estate Report predicts that over
the coming months we will hear much
about initiatives to improve efficiency
by those who work within the sector.
Mazaya Monthly Real Estate Report
Week 3 - September 2015