Weekly Q&A: "The GCC construction sector is showing the first signs of recovery" | ZAWYA MENA Edition:
1. What is the general outlook for the real estate sector in the MENA region?
Giving the cyclicality of the sector, currently characterised by an oversupply in most of the countries in the regions, the global picture for the real estate sector has taken a serious hit. Apart from the significant pressure on margins, due to a severe price decline in properties and soaring prices of construction materials, the outlook is less rosier than we had expected following the oil rebound.
Another aspect that the majority of market observers neglect is the collapse of the purchasing power among youth taking their first steps in the world of work and that access to credit is even more problematic (particularly with the tightening of capital requirements). It is a structural problem, where the solutions are not easy to implement.
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