Regional Outlook & Al-Furjan Performance Report
Regional Market Overview
Regional tensions, which escalated on 28th February, have now eased following the signing of a peace agreement between Iran and the US. This development is broadly positive for GCC economies, particularly in terms of business confidence and real estate market sentiment.
However, the market is not expected to normalise immediately.
According to recent reporting from Khaleej Times, freight and logistics rates are projected to take 3–4 months to stabilise, with supply chain backlogs gradually clearing over this period.
Key Macro Trends:
Improving geopolitical stability has contributed to stronger investor sentiment, although short-term supply chain pressures continue to affect the market. Rather than an immediate correction, a gradual recovery is expected as confidence returns. At the same time, buyers are increasingly prioritising fixed-rate mortgage structures to better manage interest rate exposure and reduce financing uncertainty.
Transaction in Al Furjan
Within Al Furjan, the property market has experienced noticeable shifts in both inventory levels and transaction activity over recent months. At the beginning of the year, the market remained relatively stable, with approximately 2,000 available units in January. However, between February and March, available inventory declined by around 50% as many property owners temporarily withdrew their listings amid market uncertainty. Following the ceasefire, listings have gradually returned to the market from April onwards, signalling improving confidence and a steady recovery in supply.
Transaction activity has followed a similar pattern. According to Property Monitor data, Al Furjan recorded 155 transactions in January, reflecting a strong start to the year. Activity then moderated to 100 transactions in February before softening further to approximately 70 transactions during March and April. By May, transaction volumes had fallen to 41, representing the lowest level of market activity during the period. Overall, while market conditions remain cautious, the gradual return of inventory and improving investor confidence suggest a measured recovery rather than a rapid rebound.
Advice for Sellers
In the current market cycle, strategic positioning is more important than ever. Sellers should ensure their property is priced accurately from the outset, as overpricing in a market with slower absorption rates can significantly reduce buyer interest and extend time on the market. Working with agents who have a deep understanding of local micro-market trends and demand pockets is essential to achieving the best possible outcome. Rather than focusing on aspirational pricing, sellers should prioritize realistic liquidity, positioning their property competitively to attract qualified buyers and maximize the likelihood of a successful sale.
Key Takeaway
The market is transitioning from a supply-constrained phase to a rebalancing phase, where strategy, pricing discipline, and execution will determine performance outcomes more than market momentum.
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