Trump win may strengthen GCC property markets

The US election results may strengthen the appeal of home, or more local investments in GCC property markets, said Faisal Durrani, Partner – Head of Research, Cluttons.

Durrani expects a positive short-term outlook for the region’s property markets, especially in Dubai, as uncertainty over Donald Trump’s election win dominates market sentiments.

“This morning’s shock result is already reverberating around the world and creating further anxiety in an already uncertain economic environment,” he said.

Like many experts, Durrani is looking at the wider repercussions of the election on the market, including turbulence in the stock market and the weakening dollar, which he says will play a major role in how, and where, people invest.

He said: “While it’s still early days, immediate concerns are around the resilience of oil prices, which are sliding this morning, along with a weaker dollar, suggesting we may need to buckle up.

“An uptick in imported inflation as a result of a weaker dollar will put already stretched regional household finances under further pressure.

“Further contraction in the oil sector will also have negative ramifications for the property markets, especially where the oil sector dominates office take up and is responsible for the bulk of new household creation.”

However, Durrani noted that with currencies pegged directly to the dollar, the pull of other investment markets, such as London, may be eroded to an extent, should the dollar slide in the coming days and weeks.

“This may well strengthen the appeal of a regional investment, helping markets such as Dubai and more secondary locations like Doha, perhaps, benefit from any temporary recoiling in global property investment appetite,” he added.