Navigating the Complexities of GCC Real Estate Markets an Analysis of Interlinkages and Oil Effects

This work aims to shed light on the co-movement patterns of the real estate markets in the Gulf Cooperation Council region in time-frequency spaces by employing wavelet coherence analysis on daily frequency time series data covering the period from 2013M1 to 2023M3. The results indicate that all GCC countries (except for Bahrain) display a strong correlation in the long run. It could be attributed to the fact that the economies of these countries are heavily reliant on oil rents. After isolating the effect of oil prices using partial wavelet coherence, a weaker relationship is observed in the long term between Qatar and Kuwait and between Qatar and KSA. The insights gained from this study are relevant to policymakers, local and international investors, and other stakeholders interested in the GCC real estate sector. The findings shall facilitate decision-making and policy formulation aimed at maintaining the stability of the real estate market