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2008
Home arrow News arrow Middle East arrow Gulf real estate still looks promising

Gulf real estate still looks promising

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Sunday, 02 March 2008
Gulf map
Gulf map

According to Moody’s Investors Service, analysis of real estate in the Gulf Coast is difficult. This is mostly result of the lack of consistent information on the real estate sector in this area. However, despite this, it is easy to see that the outlook for real estate in this area is still strong even with the global economic crisis.

There is no question that many parts of the world are experiencing a slump in real estate activity. One of the areas that so far has proved exceptional is the Middle East, especially Dubai.

Moody's Investor Service recently released a report that shows the Middle East property market is experiencing growth that will be sustainable for years. The report cites a demand for new housing, office and retail space which will continue to climb while supply will most likely not be able to keep pace.

The role of Middle Eastern governments in assisting developers cannot be overlooked. The government has allowed large tracts of land to be developed by many government-owned real estate developers. These areas experience growth in a fairly short period of time. When compared with more mature markets, there is a lot in the Middle East that makes its market unique. This has allowed the area to continue growth despite the property market woes elsewhere.

The Moody report goes on to caution potential investors. The report shows that a lack of information and regulation makes accurate analysis difficult. There is a question as to the accuracy of official reports from the area as well as regulation issues that could be of concern in the future. It also appears that market estimates vary depending on the source.

The availability of land alone is a driving factory behind the market's growth. While the government is willing to make large tracts available to master developers, there could eventually be cause for concern of the companies credit worthiness.

Exposure to only one market could act as a constraint for these developers. Because of this, the Moody report will take into consideration the amount of government support. Despite these concerns, the facts speak for themselves. As of right now the Middle East property markets are booming.

This story relates to: dubai  middle east  property market  [SEE ALL]


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