Global Property Fall Trend Less Affected in Gulf Property Market

For people seeking an investment opportunity that doesn't succumb to the global fall trend in property investment transactions, the Gulf property market still appears to be a welcome option.

Although the initial phase of sub-prime crisis seems to have passed, the credit crunch is likely to continue well into 2009, particularly, in European and US property markets. This indicates a considerable decrease in property transactions in these markets.

However, on the contrary, the Gulf region, and few other markets such as the Asia Pacific, will be less affected to a great extent, and continuing to attract investments, he added.

This positive stance about the Gulf Market follows the publication of annual money into Property report, which studies the global property trends. The report shows that the value of real estate capital market has touched $12trillion in 2007, an increase of over 18 percent from the previous year.

As against the year 2007, when Global Investment transactions grew to $730bn, expects a fall of 30 percent this year touching $500bn, due to the global investment environment last year. Even the global direct real estate transactions have fallen by 50 percent during the first quarter of 2008, as against the same period during 2007.

Only a few regions can escape the effects of the sub-prime fall out, and, based on the research and on-the-ground experience of the company in exclusively dealing across the Gulf markets; there are strong indications that regional property markets are less likely to succumb to global property trends.

The Gulf Arab real estate boom began in Dubai during 2002, by permitting foreigners to invest in property, and this has led to a series of real estate boom across the region. The GCC mortgage market, particularly the UAE, experienced massive growth over the past year, spurred by the real estate boom.

The industry experts have predicted that mortgage market in the UAE will witness a major leap from Dh.20bn by the end of 2008 to Dh.64bn during the next three years, with Sharia-compliant house financing contributing to more than 60 percent of this figure.

Gulf property market trends and reviews of Dubai, and Kuwait