GCC’s economic growth good for global real estate

The real estate market globally is faced with challenges arising from surging inflation, skyrocketing energy prices and monetary policy tightening which is causing a dent to investor confidence around the globe.

This has led to a slowdown in decision making process, while also causing significant reduction to liquidity in international real estate markets, leading to a largely uncertain global outlook as was forecasted by the International Monetary Fund (IMF).

In contrast to the popular trend, the Middle East, particularly the GCC region has experienced relative stability in market conditions amid a healthy economic condition which has positively impacted market confidence and also brought about an increased appetite for discounted investment opportunities overseas.

Furthermore, the marked recovery in oil prices in mid-2020 has also been a notable driving factor contributing to the improvement in consumer confidence and positive investor sentiment in the region. This has availed investors from the region enough liquidity to seek out international real estate investments.

“Although oil prices have seen a partial reversal in recent months, they remain elevated in comparison to recent history and are unlikely to significantly impact investor confidence in the region,” said JLL’s Executive Director of International Capital Coverage Fadi Moussalli in a statement on Monday.

“Therefore, the willingness of investors to take advantage of discounted buying opportunities will continue to emerge in the face of the uncertain economic outlook in Europe and the US and moderated competition in bidding.”