Wednesday, November 14, 2007

Gulf countries will need 5 million new homes in the next ten years

from Business Intelligence Middle East

The GCC countries will need five million new housing units in the next ten years to cater to rising national populations and to accommodate expatriates coming to the region for jobs amid high economic growth. Supplies of new homes are projected to be 2.9 million units during the period, leaving a gap of 2.1 million units. "The biggest gap will be in Saudi Arabia at 67%," said Blair Hagkull, Middle East and North Africa Managing Director of real estate consultancy Jones Lang LaSalle ... The shortage of new homes is particularly severe for buyers and tenants whose monthly income is less than AED 12,000, while in the luxury and top-end category the supply-demand gap is the narrowest. The real estate market is experiencing a distortion in most segments with oversupply in the luxury segment and undersupply in the low-income bracket, according to Jones Lang LaSalle.

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