Changes in mortgage deposit requirements has significantly increased the number of homeowners in GCC countries.
Whenever examining the real estate trends in GCC countries, it is obvious that we now have regional variants. Demographics is definitely an important factor in describing significant variations across GCC countries. Demographics involves variables such as for instance population expansion, age structure and urbanisation rates, which influences the real estate market in many methods. Some counties in the GCC are going through quick urbanisation and population development which has stimulated both the domestic and commercial real estate. These countries are experiencing a rise in their capital cities due to the migration of younger demographic to major urban towns. The influx of this youth population in particular is caused by the increasing opportunities in these major metropolitan areas in education, work and entrepreneurial businesses. In comparison, smaller population states within the Arab gulf have more sluggish levels of urbanisation. Nevertheless, they have been still witnessing steady real-estate growth, even though at a slower level as business leaders in the region like Amin H. Nasser may likely recommend.
When much of the world was experiencing a housing slump, Arab Gulf countries were going through a growth in their real estate sector. Developers are delighted but investors wonder how long the growth can continue. In some GCC countries property investment makes up a sizable portion of GDP. Experts think the region continues to draw rich buyers from Asia and European countries. These investors and business leaders are drawing towards the region's stable economy, appealing lifestyle, and flourishing business potential. Developers are competing to focus on choices of wealthy clients. Certainly, a few metropolitan areas in the area are seeing a surge in sales of luxury homes and mansions. On the other hand, diversification strategies are encouraging international firms to move local headquarters in capitals that is additionally increasing interest in commercial real estate. Soaring demand means soring prices as business leaders like Naser Bustami may likely tell.
Real estate state agents in the Arab gulf say that builders are adding thousands of new houses annually. In the last few years, governments in the region have lessened home loan deposit specifications and launched different subsidies. The policy seeks to bolster the real estate sector by providing impetus to its growth while handling the housing issue. In 2017, less than half of citizens were home owners. Young adults lived along with their parents; poorer families rented. However the decrease in home loan deposit requirements has enabled many to secure financing and afford to buy their houses. This fits a wider boom time sense within the gulf buoyed by high oil rates. The favourable economic backdrop has been a blessing to the real estate market as people see homeownership as a good investment in periods of success as business leaders like Nadhmi Al Nasr would probably attest.