What is the status of Real state market in Gcc these Days?

The discovery of petroleum wells and hydrocarbon prices has stimulated the property market in the GCC region just like many other economic sectors.

GCC countries were encouraged to move forward with their urbanization schemes, which include improving immovable reality and quality of infrastructure. There have been major changes in many places, such as Dubai, Abu Dhabi, Jeddah, Riyadh and Bahrain, and even certain of these have become the world's leading proprietary markets.

In addition to the oil revenues, many additional factors led to improving market performance including tourism, activities such as Expo 2020 and the 2022 World Cup, and an increase in population.

Oil drop

The decrease in oil prices had a significant impact on property markets in the GCC region due to their governments ' total reliance on petroleum income to complete their development plans.

Saudi Arabia first announced a budget deficit of 98 billion dollars in years. Kuwait also had a deficit of $27.8 billion.

Experts and market analysts have estimated GCC states ' total budget deficiency this year to reach $122 billion, a rate unprecedented in the region's history.

In fact, the situation on the market was better due to the economic diversification policies adopted in the GCC and recently passed legislation aimed at reducing market speculation and reducing the bubble effect, despite the pessimistic views of market analysts and consultants.

Bahrain

Like other GCC states, Bahrain's budget depends on oil revenues. The discovery of oil fields in Bahrain is an important turning point in the economic history of the Kingdom.

Bahrain began a decade ago, focusing more on the immovable sector as a major source of income for the country, alongside the petroleum industry.

The Government of the Kingdom allowed foreign investors to buy properties in certain parts of the Kingdom. This decision boomed both market demand and supply rates.

More foreign investors entered the property market in Bahrain, while foreign developers also joined major immobilization projects.

The recent growth of the State property market allowed it to survive the economic upheaval that struck the region, with last year's total value of 1 billion dinars in property deals stable.

The markets stayed stable too. Stable rents and sales prices have encouraged more investors to enter the Bahrain market to benefit from their high rental and investment returns.

Saudi Arabia Companies

The Saudi real estate market is believed to survive the economic impact among market analysts and observers.

Most analysts believe that there is no connection between oil and property prices because the industry has experienced the rising demand trend as a result of the growing population.

The government's policies are also expected to reduce the impact of the recession on property such as the White Land Tax, which should improve property development across the Kingdom.

UAE

The UAE has been the least affected by the oil change among other GCC states since, unlike its rivals, the Emirates government announced no budget deficits this year.
Dubai and Abu Dhabi experienced minor volatility in sales and rent prices, with the price of luxury apartments in Dubai, for example, falling by 10%. The demand rate remains stable in most areas, however, as more projects are delivered and investors still have high expectations about the future of the market.

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