The Middle Eastreal estate industry is one of the fastest growing sectors across the world. Foreign
real estate developers have infused billions of dollars into places such as Oman,
Qatar, Dubai, Saudi Arabia and other countries in Middle East region, which has
pushed the growth of this market. The real estate market in Middle East
encompasses the activities related to the real estate development including
management, trading, rentals and leasing in the regions of United Arab Emirates
(UAE), Saudi Arabia, Egypt, Kuwait, Qatar, Jordan, Bahrain and Oman in
residential, office/commercial, retail (shopping malls and complexes) and
hospitality (hotels and resorts) segments.
Real Estate Market Middle East |
UAE real estate
market has been one amongst the major real estate market throughout Middle East
countries. However, the real estate market of UAE was perhaps one of the most
affected economies in the Middle East during the global economic slowdown in
2008. However, the market in Dubai has entered into the recovery phase in 2010
with a decline in the rental rates. On the other hand, Abu Dhabi’s real estate
market has continued to feel the pressure with an oversupply of office spaces
and declining rates in the neighbouring cities such as Dubai. The property
markets for both Dubai and Abu Dhabi have experienced even larger amounts of
volatility over the last couple of years in comparison to their neighbours.
This is because both countries were seeking ways to diversify their economy
away from oil.
The real estatemarket in Saudi Arabia has shown a positive growth in the recent past however
prices or rental rates of residential properties remain comparatively higher
than the other regions in the Middle East. This has been attributed by the
shortfall in the supply of residential properties and rapidly rising demand
from young domestic population.
On the other
side, the real estate market in Egypt has stabilized itself in 2010-2011 with
majority of demand emanated through young domestic population. In addition, the
real estate market in Egypt has entered a quick recovery phase in 2009 due to
the booming domestic economy and increasing development activities, along with
higher investment inflows. This as a result, has augmented the real estate
market of Egypt, and is likely to follow the same growth trend in the coming
years.
Kuwait
conversely has experienced a slowdown in the price of real estate during 2008
and into early 2009. The severity of the drop was as deep as in other countries
throughout the region. This is because the country’s real estate sector is the
second largest contributor to economic growth behind oil. As a result, asset
prices in Middle East region has dropped between 25 to 50%, depending upon the
asset class.
Qatar’s real
estate market has experienced extreme boom and bust cycles as experienced in
2009 with no more than 10%. This is significant because it has highlighted how
Qatar has been through a similar situation as the United Arab Emirates. The
property market in Jordan has faced similar challenges as other real estate
markets throughout the Middle East regions where prices have dropped between
10% and 15% since the peak in 2008. The property market in Bahrain has been
affected severely by the global property markets as prices have dropped by 37%
since peaking. The luxury property markets were hardest hit as investors
canceled orders on a variety of construction projects.
Overall, the
real estate market in the Middle East has entered a correction phase in the
year 2010 with a major portion of demand inflow from the residential segment.
The demand is primarily generated by the low and medium income segment of the
population and therefore the developers were focusing towards building
affordable and economic housing properties to cater to their requirement.
For more information on the market research
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Source: https://www.kenresearch.com/mining-construction-infrastructure/real-estate-industry/middle-east-real-estate-market-research-report/637-97.html
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249