Oil prices to further impact GCC property market

Dubai may benefit from more inward regional investment despite uncertainty elsewhere

This photo is for representational purposes only.
This photo is for representational purposes only.

Further declines in oil prices may have a negative effect on regional property markets, real estate expert says.

With a sustained period of uncertainty, falling price of oil and a general weakening of the economy, the recent US election results may also cause further uncertainty for the Middle East’s real estate market, at least in the short term, according to a recent report by Cluttons.

Steven Morgan, senior partner at Cluttons said: “An uptick in imported inflation as a result of a weaker dollar will put already stretched Middle East household finances, still reeling from the economic fallout of the low oil price environment, under further pressure.

“Inflation is already rising in the region due to cost containment measures introduced by the region’s governments as they work to cushion budgetary shortfalls.

“Any further contraction in oil prices will also have negative ramifications for the property markets, especially where the oil sector dominates office take up and is responsible for the bulk of new household creation,” he added.

Morgan was optimistic however of the long-term effects of the current uncertainty in the market, noting that Dubai especially may benefit from more inward regional investment.

 

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020