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Real Estate market by 2020 in MENA region

Real Estate market by 2020 in MENA region

“All MENA markets are predicted to see better price performance than in the recent past, according to respondents.”

“Across MENA regions, buyers outnumber sellers on average by 8%, compared to only 1% in our previous Survey.”

(Source: Real Estate Investor Sentiment Survey by JLL)

Foreign real estate developers have invested billions of dollars into Middle East countries such as Oman, Qatar, UAE, Saudi Arabia and other regions in North Africa.

There are approximately 15,000 real estate offices in total in these regions, offering something for everyone.

After little recession in 2015, Dubai investment is now particularly appealing, its price growth has outpaced world’s best cities,  like Sydney,Paris, London etc. – as facts & statistics presented by Deloitte in the 1st quarter of 2017.

North Africa

According to Africa Construction Trends Report, year of 2016 showed positive growth (45% increase) for real estate sector in North Africa. It revealed sharp increase in the number of large-scale projects reached to 42, valued at US$76.1 billion compared to 29 projects in 2015.

Dubai is only exceptional country where it reported little slowdown in building of super towers in 2016.

Yet, currently for 2017, African real estate is passing through a tough year navigating difficult economic conditions, notable reasons include

  • Many of investors on the continent are private equity groups as opposed to long term investors.
  • Few countries like Nigeria and Zimbabwe are suffering currency problems.

UAE real estate market is poised to grow at a noticeable CAGR of 6.4% during the period 2015-2019.

UAE property market is highly fragmented, with about 2,206 registered brokers in Dubai alone as listed by Real Estate Regulatory Authority (RERA).

If you, as Real Estate agent/broker is planning to enter in MENA region, market research report titled Middle East Real Estate Market Outlook to 2019 – Demand for Destination Retail and Affordable Housing to Shape Future provides an in-depth analysis and figures.

Alike Middle-East Realty market booming, 10 largest projects carried out in North Africa account for 73.4% of total value, all are mainly in

– Energy & Power
– Oil & Gas &
– Transport

sectors as opposed to real estate development.

Overall, it can be said that the Middle East market has continued to achieve slow and steady recovery from the recession observed in 2008 and slowdown of 2015.

Surge is largely driven by the job creation, attractivity of Dubai as a commercial hub and increasing demand due to Expo 2020.

According to Arabian business newsletter,

“Total of $4.3 trn to be spent on MENA construction sector by 2020.”

This reporting statement is sponsored by PricewaterhouseCoopers and carried out by Global Construction Perspectives and Oxford Economics

Major players

Top 3 real estate market leaders are all public companies, NOT private ones.

Their profits are

Emaar Properties $1.2bn
DAMAC Properties $1.2bn
Aldar Properties $697 million

Emaar’s market value and asset base is much higher than DAMAC.

Conclusion

Financing real estate investments is undoubtedly challenging.

With fair estimates of demand, especially for retail sector and residential housing,  2015-2020 time is that of decision-making for realtors worldwide to invest in Middle East countries, sound regulatory framework already in place.

Brought by:

RealtyShine, delivering context-specific CRM solution and property management softwares to real estate agents and brokers worldwide.

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RealEstate

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