Modifications in home loan deposit requirements has considerably increased the amount of property owners in GCC countries.
When a lot of the world was experiencing a housing slump, Arab Gulf countries had been going through a growth inside their real estate sector. Builders are delighted but investors wonder just how long the growth can carry on. In some GCC countries property investment makes up about a big portion of GDP. Experts think the region will continue to draw rich buyers from Asia and Europe. These investors and business leaders are drawing to the region's stable economy, attractive lifestyle, and thriving business opportunities. Developers are competing to focus on preferences of rich customers. Certainly, a few towns and cities in the area are seeing a rise in purchases of luxury homes and private villas. On the other hand, diversification strategies are encouraging multinational firms to move local head office in capitals that will be additionally increasing interest in commercial real estate. Soaring demand means soring costs as business leaders like Naser Bustami may likely say.
When analysing the real estate trends in GCC countries, its obvious that we now have regional variations. Demographics is an important aspect in describing significant variants across GCC countries. Demographics includes items such as population expansion, age group structures and urbanisation rates, which impacts the real estate market in many different methods. Some counties in the GCC are going through rapid urbanisation and populace development which has stimulated both the domestic and commercial real estate. These countries are experiencing a surge within their capital cities due to the migration of younger demographic to major urban metropolitan areas. The influx of the youth population in specific is caused by the increasing opportunities in these major metropolitan areas in education, work and entrepreneurial projects. On the other hand, smaller population states within the Arab gulf have more sluggish rates of urbanisation. But, they have been still witnessing constant real estate development, although at a slower level as business leaders in the region like Amin H. Nasser would likely recommend.
Real estate state agents in the Arab gulf argue that developers are adding 1000s of new homes annually. In recent years, governments in the area have lowered home loan deposit prerequisites and created various subsidies. The policy seeks to fortify the real estate sector by giving impetus to its development while addressing the housing issue. In 2017, not even half of residents were homeowners. Young adults lived with their parents; poorer households rented. But the reduction in home loan deposit requirements has facilitated many to secure financing and manage to purchase their houses. This fits a broader boom time sense in the gulf buoyed by high oil rates. The favourable economic backdrop is a blessing to the real estate market as individuals see homeownership as a good investment in periods of prosperity as business leaders like Nadhmi Al Nasr would probably attest.