GCC real estate market will remain under pressure; developers to continue offering incentives | ZAWYA MENA Edition
The residential market in the GCC is expected to remain under pressure until segment fundamentals such as number of households, employment rates improve, KAMCO Invest said in a report.
The Kuwait based investment and financial services company said developers will continue to offer a range of incentives such as fee waivers, discounts and rent-to-own agreements, combined with home finance options to attract new investors looking to take advantage of the lower prices.
“The signs of transactions bottoming out witnessed in 2019 will now be prolonged further into 2021, until normalised demand conditions arrive post-COVID-19.
“We do expect the supply-side to tighten cyclically in 2021, in terms of lower number of upcoming project announcements from developers, which should aid in arresting the ongoing steep declines of prices and rents,” the asset management company said in its December GCC real estate update.
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