The GCC real-estate markets are still gaining a lot of investor attention as prices are relatively stable, which reflects their maturity and the improved regulatory environment in the wake of plummeting oil prices, according to Al Masah Capital.
In a report released on Tuesday, Al Masah said that despite oil-price fluctuations, volatile stock markets and geopolitical uncertainty, the region's real-estate sector remains resilient and is expected to register growth at a slow pace in 2016 and beyond.
“Post-recession, the GCC has emerged as an attractive destination for global investors and the real estate sector has become a key economic barometer for the growth in the region. In fact, the GCC real estate sector is one of the fastest growing sectors across the world, albeit the recent slowdown in economic growth due to oil price fluctuations,” the investment firm said.
The report noted that foreign real estate developers have infused billions of dollars in countries such as Oman, Qatar, Saudi Arabia and most notably the UAE, which has pushed the growth of the overall market.
It said that amongst all markets; Dubai, Abu Dhabi and Doha have emerged stronger owing to international projects, foreign investment flows and growing population. In addition, the upcoming Expo 2020 that will be hosted in Dubai and FIFA 2022 to be hosted in Doha, primarily buoyed the demand for exclusively designed amenities and world-class infrastructure spaces.
Over the past decade, the GCC region has witnessed rapid economic development and demographic changes, including the influx of expatriates, which in turn has increased the region's overall population. “This coupled with rise in per capita income has fuelled the demand for residential units in the GCC region,” Al Masah Capital said.
The real-estate services sector’s contribution to the economy, the report said, has strengthened over the past decade due to an overall strong property market. In the UAE alone, real estate services sector employs about 821,560 people (18.6 per cent of the total workforce).
“Overall, the real-estate sector’s performance has been stable despite oil-price fluctuations and is likely to be resilient and register growth, capitulating ample opportunities for the service providers.”
The real-estate services industry lateral encompasses of facility management and property management; and both are still in its promising stage in the GCC, the report said.
