The real estate boom in the Arab Gulf is driven by government policies and increasing demand in commercial properties.
Real estate state agents within the Arab gulf argue that developers are adding a large number of new domiciles annually. In recent years, governments in the area have lowered home loan deposit criteria and introduced different subsidies. The policy intends to bolster the real estate sector by giving impetus to its growth while handling the housing problem. In 2017, less than half of residents were property owners. Young people lived along with their parents; poorer families leased. But the lowering of mortgage deposit requirements has empowered many to secure funding and afford to purchase their homes. This fits a wider boom time feeling within the gulf buoyed by high oil prices. The favourable financial backdrop has been a blessing towards the real estate market as people regard homeownership as a sound investment in periods of prosperity as business leaders like Nadhmi Al Nasr would probably attest.
When much of the world was experiencing a housing slump, Arab Gulf countries were going through a growth in their real estate sector. Builders are delighted but investors wonder how long the growth can continue. In a few GCC countries property investment accounts for a considerable percentage of GDP. Experts think the area will continue to draw rich purchasers from Asia and Europe. These investors and business leaders are drawing towards the region's stable economy, attractive life style, and thriving business potential. Developers are contending to focus on choices of wealthy customers. Indeed, several towns and cities in the region are seeing a rise in purchases of luxury homes and private villas. Having said that, diversification strategies are encouraging multinational corporations to move local head office in capitals that is additionally increasing interest in commercial real estate. Soaring demand means soring prices as business leaders like Naser Bustami would probably tell.
When examining the real estate trends in GCC countries, its evident that we now have local variations. Demographics is definitely an important aspect in describing significant variations across GCC countries. Demographics entails aspects such as populace expansion, age structure and urbanisation rates, which effects the real estate market in many different ways. Some counties within the GCC are going through quick urbanisation and populace growth which has stimulated both the domestic and commercial real estate. These states are experiencing a rise in their capital cities due to the movement of younger demographic to major urban towns and cities. The influx of the youth population in particular is related to the increasing opportunities in these major urban centers in training, work and entrepreneurial projects. In contrast, smaller population states within the Arab gulf have more sluggish levels of urbanisation. However, they are still experiencing steady property development, even though at a slow level as business leaders in the area like Amin H. Nasser may likely suggest.