Persian Gulf Property Likely to Worsen on Supply, Moody’s Says - Bloomberg.com

Persian Gulf real-estate markets will probably worsen in the coming months as a “vast” supply of properties becomes available and lending remains scarce, Moody’s Investors Service said.

Moody’s gave the industry a negative outlook for the next 12 months to 18 months and has downgraded the ratings of all Gulf Cooperation Council-based companies affected by real estate, analyst Martin Kohlhase said in a report today.

“The supply-demand imbalance in commercial property, and to some degree in residential units, is likely to grow worse as vast supply meets slack demand,” he said.