The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Real estate: Wishful thinking continues in the Gulf

Sentiment in Gulf property is picking up but a truly sustainable recovery is impossible.

With Dubai’s debt restructuring approaching completion, the question is tentatively being asked whether the worst is over for the Gulf’s previously red-hot property market. In most cases, that is wishful thinking.

As other opportunities for investment thin around the world, it could be that stage of the market cycle where oil prices spike. Back in the Middle East, according to a recent report by Saudi Arabia’s NCB Capital, "a turnaround in real-estate prospects now appears imminent across the GCC region".

Even in Dubai, residents are returning from neighbouring emirates, where they had been forced to move because prices in Dubai were too high. According to NCB, mortgage volumes are back to pre-crisis levels, with rates having halved. In Kuwait, sales volumes and values have shown small increases.

But oversupply continues to plague the region, especially in office space. In markets such as Bahrain, hundreds of thousands of units are being completed, at the same time as businesses remain hesitant or simply unable to set up even small operations in the Kingdom.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree