GCC Property Market Sees Incoming Wave of Global Investors
Research by renowned property consultancy, Jones Lang LaSalle, indicates a significant uptick in the number of major global investors venturing into the GCC property market this year. This surge is expected to more than double the current count, marking a substantial shift in the region's investment landscape.
A Decade of Growth Attracts Big Names
Despite a decade of robust growth in several GCC countries, few of the world's top 100 property investors had previously ventured into the Gulf. However, the recent entry of industry giants such as American International Group (AIG) and Singapore's Capita Land, which partnered with Abu Dhabi's Mubadala Development Company last year, signals growing confidence in the region's legal and regulatory framework.
Impact on Market Dynamics
While the influx of new global investors is noteworthy, their presence is anticipated to have a limited effect on property prices. This is because existing investors, predominantly from the Middle East, Pakistan, and India, currently dominate the market.
Regulatory Reforms Enhance Attractiveness
In Dubai, for instance, the establishment of the Real Estate Regulatory Authority (RERA) has been met with enthusiasm from investors. RERA's efforts to weed out sub-standard developers have contributed to the increased appeal of the GCC property market for international investors.
Diverse Investor Base Expected
The incoming global investors are expected to span various sectors, including:
- Banking
- Insurance
- Real Estate Development
Furthermore, these investors will hail from major economic zones around the world, including:
- America
- South Korea
- Singapore
- Europe