The year is drawing to a close, and the timing couldn’t be more ideal to celebrate one of the Middle East region’s foremost catalysts of growth – its real estate market.
The sector plays an essential part in the region’s ambitious yet imperative economic diversification journey. A CBRE report notes that real estate projects in Gulf Cooperation Council (GCC) countries have an estimated value of $1.36 trillion. These cover both planned and under-construction projects.
Several real estate companies are leveraging the market boom, offering landmark initiatives to consumers.
The supply side of the story is brimming with promising developments. The demand side is also showcasing a robust momentum — thanks to a mix of local and international interest that underscores GCC’s and the broader Middle East’s status as a real estate powerhouse.
In the third quarter (Q3) of 2024, Saudi Arabia recorded a 25 percent year-on-year (YoY) increase in the value of residential real estate transactions, hitting $9.4 billion.
Riyadh, the Saudi capital, led the growth, recording a 16 percent increase in sales and a 41 percent jump in transaction values compared to the same period in 2023. This growth reinforces one of the goals of Saudi Arabia’s Vision 2030 — which is to increase homeownership to 70 percent. ROSHN, a $20 billion initiative by the Public Investment Fund, is at the helm of this journey, as it aims to build over 200,000 homes nationwide.
In retail real estate, Jeddah saw a substantial expansion in H1 2024. With the completion of several zones at Souq 7, its total retail space supply has increased to 2.16 million square meters.
The UAE, led by its major cities, also tells the same narrative.
Dubai boasts record-breaking transaction figures. Data from Property Monitor shows that the city’s October sales transactions amounted to around 20,460 — making it the first time that the monthly transactions exceeded the 20,000 mark. The surge in property sales comes after the launch of an essential strategy, the Dubai Real Estate Sector Strategy 2033. It aims to double the sector’s contribution to GDP, promote sustainability, and increase homeownership rates for residents.
Read: What makes Egypt a popular real estate market for GCC investors
In Abu Dhabi — where foreign direct investments in real estate hit an impressive 225 percent YoY increase — the market is also thriving. The establishment of the Abu Dhabi Real Estate Center in November last year underscores the UAE capital’s intensified efforts to boost this very sector.
As the real estate market evolves, one can expect the region to continue building upon its foundation of ambition and innovation. This issue, which also spotlights 30 real estate luminaries, is proof that there is more than ample visionary leadership to transform the Middle East’s real estate vision into concrete realities.
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