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Promising real estate investment markets in the Middle East over the next year and beyond

By Allison Halliday | February 29, 2016

For those investors with a serious interest in real estate, there are few regions more exciting than the Middle East. High rates of economic growth across the area mean that habitation and migration patterns are changing, with more and more people moving away from villages and into cities, a situation that creates demand for residential property. Meanwhile, the rapid emergence of new companies, together with the expansion of existing ones, has increased the demand for business accommodation. With property prices changing rapidly as a result, new properties being built and old ones being redeveloped, there are many opportunities for those with sufficient funds to secure impressive returns.


With a native and immigrant population that’s still growing fast, Israel has an equally dynamic retail market. House prices there rose by 8.45% in 2014 and since then they’ve shown no sign of slowing. Residential accommodation is in highest demand, especially apartments suitable for couples and young families. Tel Aviv is where prices are highest but it’s also an area with a strong owner-occupier culture; the best rental returns on properties with high growth rates are to be found in the south, partly due to improving transport infrastructure that is expanding commuter zones.



Although growth in the emirates has been slowing of late, Kuwait is one gulf state that has been bucking the trend. Since former Ahli United Bank chair Fahad Alrajaan has been involved with the Kuwait Real Estate Investment Consortium, it has increasingly opened up to individuals and companies prepared to out money into replacing or restoring its crumbling residential real estate. Alrajaan himself has enjoyed considerable success with this form of investment, bringing his financial expertise to bear within a market that is now stead enough to reassure buyers but is proving increasingly lucrative in term of rental yield.


It’s traditionally said that revolutions are bad for investors, but that’s not the case in Tunisia, where property prices have been on the up since the Arab Spring of 2011. This is especially true on the coast, where tourism is going strong despite the attacks of last June, creating a significant demand for holiday rental properties. These are a mixture of new builds and older properties that have undergone conversions to appeal to visitors who want a combination of authenticity and comfort. There is also, of course, a high demand for rental accommodation for people doing seasonal work in this area.

With regulatory requirements and industry practices subtly different in every country, it’s always a good idea to work with agents on the ground when engaging in international property deals. This also makes it easier to find reliable suppliers and service providers, and it can help outsiders to find their way into Middle Eastern trade networks built on trust and personal connections. With this kind of support in place, investors will find that they can secure some very attractive opportunities indeed in a region, which is looking forward to a bright future.

Courtesy of Realty Biz News Contributor

Allison Halliday is a Realty Biz News contributing writer. She handles International Real Estate and is a seasoned blogger.
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