Saudi, Dubai real estate markets lead in Gulf region

According to a new source of data, it was revealed that Saudi Arabia’s real estate market has the highest scores in the GCC markets of real estate. Even during the times of global slump, the scores of the real estate market have risen from seven to fifteen percent, followed by Dubai with nine to fourteen percent. As indicated by the Colliers International research, property in Abu Dhabi ranges between eight and twelve per cent, however, Qatar stands between seven to eight percent. The crisis due to the global liquidity has had a major impact in the most advanced real estate market of GCC and it has increased by two-fold.  There are three important factors on which the extent of the impact on the property markets of GCC depends; global integration level, the yardstick price of gas/oil revenues set in the fiscal budget of that particular state and the echelon of real estate assumption prior to September.Plus, lately, the markets of various regions are at several stages of reaction depending upon the key factors’ interrelationship. As a determinant of price, rental yield had taken place secondary to gains that are short termed and speculative.

According to the latest surveys, the property markets of the Middle East have been the best performers lately, outperforming the rest of the regions in the world. According to the survey conducted by the global real estate consultancy, Jones Lang La Salle ‘The Investor Survey Sentiment’ in association with Cityscape 2008, the exhibition of the real estate recently on play here found that although UAE will offer the best real estate market in the next few years, Saudi Arabia would not be left behind with the kind of progress that has been demonstrated and would stand tall as the next best performer. The outcome of the survey reached a conclusion after gathering the views of 350 developers, autonomous funds for wealth, and investors worth high net, as mentioned by Jones Lang LaSalle in a statement. Property in Gulf region has become increasingly attractive against the global trends in the property downfall, as mentioned by an expert from real estate firm DTZ.

The modification in the prices of Dubai real estate could lead to a multitude of beneficial and productive investment opportunities in this sector within the next twelve to twenty four months and Dubai’s market will eventually emerge as the most lucrative real estate investment opportunity according to the results of the survey, in a latest report by the advisory of real estate firm Jones Lang LaSalle. The sectors of property in Dubai and the construction in Dubai are undergoing a much exposed adjustments in market with many large scale projects scrapped together or the projects that are on hold and prices slackening. At the same time, this period is looked upon by the developers as an opportunity to refocus on the elements of the end user such as higher flexibility in payment plans and reassess developments, as an example.  The survey revealed,” This price adjustment is expected to aid Dubai significantly as investors are attracted back at fairer values and with greater yields. Early signs of such activity are already visible.”

Help in the finances in the form of assistance by the Government from the $10 billion bond issue is on the cards. It is estimated that the real estate firms are the most likely significant recipients of the funds, which should help to drive investor sentiment again as a key segment of the economy of Dubai. It is also pledged by the Government to continue spending infrastructure to finish all major projects. From the perspective of respective regions, the Jones LaSalle survey scores towards being optimistic amongst investors over the Middle East real estate sectors’ prospects, that happens to be a key driver of the market. Currently, investors all over the world expect Saudi Arabia and Dubai to be the leading performers in the region of the real estate market.