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GCC property market sees green shoots of recovery – IIF Report

Infra News - Published on Mon, 13 May 2019

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The National reported that according to a report by think tank the Institute of International Finance, the GCC real estate market is displaying indications of an uptick following a period of declining prices and slower demand, although it is still vulnerable. The report by the IIF’s chief Mena economist Garbis Iradian and associate economist Jonah Rosenthal said “Across the region, there are some signals of market adjustment and governments are implementing targeted reforms that raise hopes for a real estate turnaround.”

They said that “Lower oil prices since 2014 have crimped consumer purchasing power across the oil exporting economies of the GCC, driving a fight for affordability and creating a buyer’s market as developers introduce compelling incentives to shift inventory. Rising interest rates, appreciating exchange rates and regional tensions have compounded the market slowdown, and real estate rental and sales prices have slipped since 2014.”

They said that “However, in Saudi Arabia, the authorities have introduced several affordable housing programmes and real estate public-private partnerships aimed at increasing home ownership among Saudi nationals. They are also rolling out new mixed-use mega-projects as part of the kingdom’s Vision 2030 economic diversification plan and all of this is expected to bolster demand for real estate.”

They said that “Meanwhile, in the UAE, the authorities plan to reduce government fees such as those required to register new properties and sales transactions and relax regulations on foreign ownership. Last month, Abu Dhabi amended its real estate laws to permit freehold ownership by foreign investors for the first time in certain free zones across the emirate. Abu Dhabi’s Dh50 billion economic stimulus package being rolled out in 2019 and beyond is expected to provide a much-needed boost to the real estate sector.”

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Posted By : Rabi Wangkhem on Mon, 13 May 2019
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