Details

Tens of thousands of under-construction projects

 

-Al Mazaya Report:

-Ongoing property developments ensure financial leverage for priority economic sectors

-11,000 new real estate projects in the works in hospitality, leisure, retail, cultural, educational & healthcare sectors in UAE

The real estate sector is undoubtedly the mainstay of economic growth and recovery in the Gulf region, on account of the tight links and interoperability with other economic platforms.

Therefore, the volume of real estate projects being currently executed and those in the pipeline could be conducive to creating more momentum for all economic sectors whilst maintaining good liquidity values that ensure all business platforms can continue to grow against the odds of global economic and investment headwinds.

Al Mazaya Holding’s weekly real estate report says that the real estate projects being constructed at the moment are a guarantee for consistent economic performance in the medium term at the very least.

Al Mazaya’s report referred to the real estate sector in the UAE, where industry data indicate that there were over 11,000 new projects until the end of Q3 2018, with a total value of over US$480 billion. These are distributed over the sectors of hospitality, entertainment and retail in addition to cultural, educational and healthcare projects.

Al Mazaya stressed that such projects have become the primary guarantor for sustainable economic performance over the medium term in the UAE. In addition to other government stimulus plans, the real estate sector, which accounts for 87% of the number of active projects compared to 13% for the other sectors, ensures that the country’s economy will be more resilient to global and regional financial pressures.

With regards to Egypt,  Al Mazaya Holding’s weekly real estate report said that despite the price bubbles and sharp fluctuations recorded by the real estate sector for some time and the imbalance between prices and the purchasing power of a large segment of society, the large volume of projects being currently implemented reflects an optimistic outlook for the future.

According to industry data, there are more than 1,400 real estate projects currently under execution in Egypt at an estimated value of $348 billion, with residential and commercial properties accounting for 79%, while tourist facilities and hotels maintain a growing share amounting to 13%.

The immense projects being implemented in the new capital is capable of securing a high level of economic mobility for the rest of the country’s economic sectors.

Al Mazaya added that pumping more real estate projects that address low and medium-class segments are now more needed than before, with market indicators confirming real demand for all real estate products including the luxury ones.

As for Oman, the real estate sector in the Sultanate has become more dependent on the size and number of strategic projects that various state department are launching and implementing, which will ultimately support the pace of economic activity and enhance the country’s GDP.

More efforts are being made now to support the mining and tourism sectors with more projects which are set to see the light by 2023, said the report.

The Al Mazaya report states that Oman’s new economic zones, which are now near completion, have a great potential to attract investments from 18 countries due to the considerable economic incentives they provide.

Over and above, the integrated and truly modern, functional cities being constructed in the Sultanate will provide thousands of direct and indirect employment opportunities in addition to the land and air transport projects which are near final completion. This means that the values of the investment liquidity currently being traded on all projects will reflect positively on all sectors, primarily the real estate platform.

With regards to Saudi Arabia, the weekly real estate report of Al Mazaya Holding said that the performance of the real estate sector in the Kingdom cannot be evaluated only on the basis of the decline in prices or according to the value of transactions conducted during the current period.

The report in this regard highlighted that there are various stimulus packages that need more time to accomplish and reap their dividends.

There are over 5,200 projects under construction with an estimated value of over $800 billion. These are capable of providing economic sectors with real economic leverage over the medium and long terms.

Completing these projects as scheduled will be considered a significant success by the Kingdom’s various departments to meet the continuous demand.

In the meantime, industry data indicate that the Saudi real estate sector will continue to grow at not less than 6% annually until 2022, and that this significant growth will be accompanied by a considerable focus on investment to stimulate and develop the construction industry to meet the growing demand for building material.