Once we hear the word Gulf, the first thing that comes to our mind is the Emirates and Saudi Arabia as these areas are considered as a proper place for real estate investment. But, the question is, does the real estate market get affected by the drop in the renting prices? And is this a good implication or a bad one?
Let us say that the drop of the prices in properties of the Gulf will of course affect the buying and selling movement positively. As the real estate market used to got affected by the economical and the financial status of the state. However, “the offer and the demand” used to be the main motivator. So, it is totally normal that as a result of the increment in the offered properties, the rental prices will be dropped; which is something that the buyer will like. Besides, it is worth to mention that the increment in the offered properties allows the Gulf market to have lots of variable options that can be used for renting, selling, administrative services, and others. So, from the developed companies’ point of view, it becomes easy to convert from renting to selling as it is a less costive option.
As a result, such drop in the rental prices is the main motivator for the foreign investors to invest and own properties in the Gulf area.
To conclude, it is vital to revive the economy of the state as it is one of the main factors that shall be taken into consideration as it may affect the rental movement and the offered properties will be more than the demanded. This will affect the real estate investment movement. However, the Gulf will always be a good environment for real estate investment.