Tuesday, July 08, 2008

Gulf Property market unlikely to succumb to global property fall trend

For those of you, who are on the look out for an investment opportunity that doesn't succumb to the global fall in property investment transactions, the Gulf property market is still a welcoming one.

According to Robin Williamson, the Managing Director-Middle East operations of DTZ, expert real estate firm, although the initial phase of sub-prime crisis seems to have passed, the credit crunch is likely to continue well into 2009, particularly, in the European and US property 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 will continue to be an attractive one, he added.

This positive stance about the Gulf Market follows the publication of DTZ's 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, DTZ 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.

Williamson revealed that only a few regions can escape the effects of the sub-prime fall out. Based on the company's research and on-the-ground experience in dealing with Gulf markets, there are strong indications that the global property markets are less likely to surrender to these global trends.

DTZ, which began its operations in 1975, is one of the most established realty firms in the region, with a strong presence in six GCC locations, including Dubai, Abu Dhabi, Bahrain, Qatar, Kuwait and Saudi Arabia.

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