The real estate sector in the Gulf Cooperation Council (GCC) countries has witnessed prosperous growth since the beginning of 2024. The total value of real estate projects currently planned or under construction stands at an estimated $1.68 trillion, up from $1.38 trillion in 2023, the CBRE Group stated in its latest report. The initiatives and strategies the GCC governments have implemented are major drivers for real estate growth and increased demand from both local and international investors.
The latest CBRE report revealed that the UAE and Saudi Arabia are leading the growth of the sector in the region. Both countries’ investment and business initiatives led to an increase in real estate occupancy and demand from different unit types.
In addition, GCC countries continue to develop their infrastructure, which supports their economic diversification efforts. This has also contributed to a noticeable increase in real estate activity over the past few years.
UAE and Saudi Arabia lead growth
Saudi Arabia accounts for 63.1 percent ($1.06 trillion) of the total value of real estate projects currently planned or under construction in the GCC. As for the UAE, it makes up 24.4 percent of the total value of projects at $409 billion. Meanwhile, Oman accounts for $87 billion or 5.2 percent of the total value of projects in the region.
Kuwait accounts for 3.2 percent at around $54 billion, while Qatar represents 2.9 percent at $48 billion, followed by Bahrain with $21 billion, or 1.3 percent of the total value of real estate projects.
Read: Abu Dhabi records $23.7 billion in real estate transactions in 2023
Middle East real estate market
In its latest 2024 market outlook report on the Middle East, the CBRE Group expects the real estate sector in the GCC to continue its upward trajectory. Moreover, it notes that the sector will contribute to economic growth. It also reveals that demand and limited supply will raise market performance.
CBRE added that it expects the non-oil sector in the GCC to show a stronger rate of growth of 2.9 percent. Moreover, it stressed that the real estate sector in the UAE will continue its growth momentum, supported by government initiatives that have created multiple opportunities to develop new and different projects in the country. In addition, CBRE expects the real estate sector in Abu Dhabi and Dubai to continue to grow, supported by the growth of the luxury real estate market.
In Saudi Arabia, increasing leisure-based initiatives will help both diversify the demand base and boost weekend demand. As for Bahrain, CBRE Group expects an increase in the occupancy rate of low-priced properties.
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