Real Estate Resurgence

With diversification plans taking shape, 10–year visas on the horizon and oil prices holding firm, investor sentiment has increased again in the GCC’s property market.

- Neil King

THE RESILIENCE OF the GCC’s real estate market has proven itself yet again this year, having weathered several stifling months of economic headwinds to re– establish itself as one of the region’s most talked–about industries.

The caution of the past couple of years has started to give way to restored confidence as oil prices stabilise, governments’ diversification efforts continue to take shape and global investors return to the scene.

Not to mention the raft of announcements that have won widespread favour among stakeholders, such as the promise of 10–year visas in the UAE.

That particular announcement by the UAE cabinet in May this year had an immediate impact on the property market, pleasing investors and developers and seeing stocks rise in trading by almost 5 per cent in some cases.

The outpouring of support was instant. Ali Rashid Lootah, chairman of Dubai developer Nakheel, issued a statement welcoming the change, which he said would “undoubtedly have a positive effect on the UAE economy – and in particular the real estate sector”. Marie Salem, director of capital markets at FFA Dubai, said the move would “surely boost the performance of the real estate sector and give comfort to the investors there”.

CEO and head of architecture at Binghatti Developers, Muhammed BinGhatti called it a “momentous” decision that would “undoubtedly have a highly positive effect on the real estate sector”, and Dubizzle’s general manager for property, Samer Abdin, added it would “encourage more foreign investment in the market, resulting in a more vibrant property industry”.