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SAUDI, UAE SPEARHEAD GROWTH

Retail boom, housing to drive ME real estate market

DUBAI, May 2, 2015

The rising demand for destination retail and affordable housing is likely to drive the growth of real estate market in Middle East region which is likely to hit $113 billion by 2019, said a report.

The future growth of the regional real estate sector is expected to be led by the UAE and Saudi Arabia Markets, stated Ken Research in the report.

The global players operating in the industry are expected to maintain focus on enhancing developments projects to compete with other players in the industry, said the India-based company in its latest publication.

Despite most investors looking upon the Middle East as a volatile and unattractive sector in which to place their money, shrewd investors have estimated that this is a highly lucrative market that is just now being tapped by the international community, the report stated.

The market was supported by the higher oil revenues and excess liquidity which has been attributed for the remarkable growth of real estate sector in Middle East region, said Ken Research in the report.

In addition, rising disposable income and availability of credit impelled the demand for real estate properties during the period 2009-2014, it added.

According to Ken Research, the real estate market in Middle East had witnessed a robust growth before the global economic crisis hit the market in the second half of 2008.

Due to this, the investors retreated from the market and the ongoing developments and constructions were either cancelled or postponed, it stated.

However, the future of the Middle East real estate market looks rosy with stable growth in the long run due to mounting domestic demand for affordable residential properties, friendly government laws, surging government investments and inclining inbound travelers in the region, said the report.

On the basis of sectors, the residential market in Middle East is expected to witness a continued strong demand in the affordable housing segment with an increasing middle class and the young domestic population.

Even when the growth has moderated in many emerging markets; the pace of construction activity has remained strong which intensified the investment opportunities.

This trend is likely to remain positive in the coming years which is anticipated to infuse the growth of real estate market at Middle east level, stated the report entitled “Middle East Real Estate Market Outlook to 2019 - Demand for Destination Retail and Affordable Housing to Shape Future."

The report covers specific insights on the market size in terms of value, segmentation by geography and sector wise segmentation by major countries, drivers and restraints, recent trends and developments, government regulations and future outlook of the real estate market at the Middle East level and countries.

It also entails a detailed description of the prominent and emerging geographic markets of the region including the GCC countries (UAE, Saudi Arabia, Oman, Kuwait, Bahrain, Qatar) and Jordan and Egypt.-TradeArabia News Service




Tags: UAE | Saudi | real estate | retail | Housing |

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