Free Resource - A guide to the Middle Eastern Property Markets

Discussion in 'Middle East Property' started by totallyproperty, Apr 1, 2016.

  1. totallyproperty

    totallyproperty Administrator Staff Member

    Middle East property

    The Middle East has long been a conundrum for investors and business owners due in the main to a very different political and regulatory environment. There are obvious differences between the Middle East property markets and European markets but there is no doubt there are opportunities for lucrative investments across the Middle East region.

    Dependent upon oil

    Oil has been a major component of the Middle East economy for many years now and will continue to be so long into the future. If you dig a little deeper you will be surprised to learn that not all countries are as dependent upon oil as you might think. We have seen a significant increase in the services sector across the region not to mention property investment. So, while it is obviously very useful to keep a close eye on the oil price this is not the be all and end all of the region.

    Political uncertainty

    There is a very different type of politics across the Middle East and while from time to time we will hear of new political trends and movements, more often than not they come to nothing. There are some very powerful figures in the Middle East and while there have had to dilute their influence somewhat to attract overseas investment it is a very different environment to that in Europe and the US for example.

    The economy

    As we touched on above, the economy is heavily dependent upon the price of oil but there are also other prosperous areas such as property investment. This particular area of the market obviously depends upon a strong economy and the creation of new employment opportunities. The expat community has a significant influence on real estate investment in the Middle East although unfortunately expat workers are often the first to lose their jobs in challenging economic times.

    Property regulations

    As we saw with the rise and fall of the Dubai real estate market, property regulations in some of the Middle East markets do not compare favourably to the likes of Europe. Investor confidence plays a major role in any property market and therefore the ongoing improvement in regulations will help to increase activity in the longer term. It is all good and well having the best prospects in the worldwide property market but unless there are regulations to protect investors and developers there will be issues.

    The future

    Many experts believe that the Middle East real estate market is something of an untapped treasure which is now being reflected in rising property prices. The key to overseas investment in the Middle East will revolve around tighter regulations to protect investors as well as the removal of restrictions on overseas investment. In many ways it is the stigma of years gone by which continues to impact the impression which many property investors have of the area. As this stigma fades we will see an ongoing increase in overseas real estate investment which bodes well for all involved.

    However, bear in mind that regulations are different across the Middle East and you need to know your market if you are investing in real estate.
  2. bin_3loush

    bin_3loush New Member

    I wish you wrote a book explaining more about these topics, such as the differences in ME and europe real estate.

    Sent from my iPhone using Property Forum

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