The real estate market is beginning to mature in some GCC countries, with a greater choice of housing and office stock creating tiered pricing structures.

Dubai has the most mature residential real estate market, and prices in the emirate have risen rapidly over the recent economically prosperous period, due to the number of expats who flooded into the country to live and work. Despite not being a direct oil economy, the worldwide fall in oil prices were inevitably met with concerns of a 2009-style housing market crash hitting Dubai, but what followed was a more gentle flattening, and in some cases, reduction, in prices.

Residential prices fell in the final half of 2014, and further falls are expected this year, particularly as a swathe of new housing stock is due to come to market. Prices for office space are more stable, although new commercial developments becoming available in 2015 could depress rental values.

In neighbouring Abu Dhabi, a downturn is expected, mainly due to the 40 per cent fall in the oil price. Office space in particular is expected to be hit, due to the large number of oil-based companies operating in the emirate. Residential sales and rental prices are expected to remain stable through 2015, although if oil companies continue to operate on shrinking revenues and cut staff numbers, the residential market will be negatively affected.

Oman’s quieter market has seen lower price rises, but in Qatar, the story is very different. An undersupply of residential and office space, and an influx of staff working on World Cup projects has pushed prices up sharply. Expats now spend, on average, more than a third of their income on housing, and the undersupply looks like it will deepen over the coming three years, making affordable housing even harder to come by.