A report issued by Alpen Capital Company, which is a financial consultancy firm, expected the real estate sector in GCC region to continue its growth until 2018. In the same context Semina Ahmed, managing director of Alpen Capital, said that real estate sector will grow in the period between 2015 and 2018 due to many positive economic factors.
The region witnesses many positive factors like the rising governmental expenditure on construction projects, the flourishing tourism sector, in addition to GCC governments’ orientation to diversify national incomes sources.
The report referred to another pivotal factor of real estate growth which is population growth. The population growth rate in the period between 2015 and 2018 is expected to reach annually 2.5% bringing the total of population to 56.9 million inhabitants. The population growth will lead to rising demand rates on all kinds of properties in GCC countries.
However, the report referred to a number of challenges facing real estate in Gulf including oil prices drop, decreasing private sector investments, and the provision of skilled labor as real estate sector mainly depends on expats.