- Dubai’s Property market showing signs of recovery; still far from the peak in 2008
- Real estate oversupply remains a major concern across markets in the region
- Most markets remained weak due to seasonal effects
A strong support from the residential and hospitality segments helped Dubai’s real estate market to outperform Abu Dhabi’s in the 3rd quarter, says recently released report by Global Investment House. Dubai’s residential market witnessed an increase of 5–7% in rentals. On the contrary, Abu Dhabi rentals fell by 1%. Dubai’s hospitality segment witnessed its daily rates jump 8%, with a 3 percentage point improvement in occupancy rates in contrast to the weakness which haunts Abu Dhabi’s real estate market.
Saudi Arabia
In the 3rd quarter of 2012, office and hospitality segments provided a boost for Jeddah’s property market to surpass Riyadh’s. Jeddah’s office rental market raised 5.5% in Grade B property rates. Riyadh’s office rentals declined 2% overall. Jeddah hospitality market’s Average Daily Rate jumped 6%, with an 11 percentage point improvement in occupancy rates. The numbers for Riyadh’s market kept getting smaller.
Bahrain
Ramadan and the summer season caused a weakening in Bahrain’s office and residential rental markets in the 3rd quarter of this year. Oversupply remains a major concern for the office market. At the same time, tenants’ greater bargaining power applies pressure on the residential rental market.
Kuwait
Overall traded value of real estate properties decreased 37.6% quarter on quarter to 564.8 million Kuwaiti dinars in 3rd quarter of 2012 due to slowdown in the summer and the month of Ramadan. Yet, backed by strength in the residential segment, this figure translated into a 9.5% year over year rebound in 3rd quarter of 2012.
Oman
In the 3rd quarter, the residential market varied from steady to declining – a 6–13% tendency. The office market remained relatively stable through the period. But property oversupply is still a painful concern. Expansion in the country’s industrial sector caused a higher demand for the warehousing segment.
Qatar
Qatar’s residential rental market became more sluggish in the 3rd quarter. Transactions have declined almost 30% from the previous measurement because of high property supply. Yet, office rental market is steady due to strong demand for smaller spaces. Government organizations caused most effect over the office rental market in 3rd quarter of 2012.
