GCC Real Estate Market Overview in 2024

The Gulf Cooperation Council (GCC) market, encompassing Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, is a dynamic and rapidly evolving economic region.

With its thriving economy, significant GDP, government-backed infrastructure, and favorable investment policies, GCC real estate market has robust growth potential and future profitability. Given the region’s continuous urbanization, rising population, and increasing demand for residential, commercial, and industrial properties, GCC property market is highly attractive for real estate professionals and investors.

By understanding the GCC real estate trends, it’s possible to assess its potential and strategically align investments for future growth.

This article provides an in-depth overview of the GCC real estate market, exploring its key economic trends, sectoral growth, and investment opportunities, all divided by the country in GCC region.

GCC Real Estate Market Projections

The value of real estate projects, either planned or underway, in GCC economies is estimated to increase to an expected $1.68 trillion in 2024, up from $1.38 trillion last year (source).

There are multiple factors which contributed to this increase, with government initiatives and urban development strategies being the most influential ones. With state support and international and domestic investors at its side, the GCC property market is certain to develop and grow further.

The real estate sector’s growth in the region is led by Saudi Arabia and the UAE, thanks to their proactive real estate investment and business initiatives, which have boosted property occupancy and demand across both residential and commercial real estate.

Saudi Arabia, leading with its Vision 2030 initiative, accounts for 63.1% of the total increase in 2024, or about $1.06 trillion. The UAE follows with a 24.4% share, accounting for $409 billion. The expected remaining contributions are divided between Bahrain (1.3%), Kuwait (3.2%), Oman (5.2%), and Qatar (2.9%).

Residential real estate is set to dominate the GCC property market, with a projected volume of $3.07 trillion in 2024. The GCC countries are seeing increased demand for luxury properties due to high purchasing power and a favorable investment climate in the region (source).

UAE Property Market

The UAE real estate market is among the most influential and profitable GCC economies. The UAE was the only market in 2023 to show growth in both property prices and transaction volumes.

The UAE real estate market, particularly in Dubai, is maturing, with substantial new developments in Ras Al Khaimah and Abu Dhabi. Continued investments in infrastructure, technology, and sustainability are expected to sustain growth in the UAE and the broader Middle East.

While prime areas in Dubai may stabilize, there remains significant growth potential in emerging sectors such as logistics and technology, driven by the market’s emphasis on innovation and sustainable development.

In Abu Dhabi, transaction volumes are expected to continue rising in 2024, fueled by the introduction of new luxury and prime properties by commercial real estate companies Dubai, which should also drive stronger average price growth. In contrast, older and less updated properties are likely to underperform.

Dubai commercial real estate is quite similar to Abu Dhabi. The transaction volumes are predicted to see a slight decline, but prices for apartments and villas are projected to keep rising, albeit at a slower pace.

The UAE real estate market is embracing innovation along with the US and European markets. Some of the proptech companies and startups operating in UAE are:

• SmartCrowd. A crowd-funded platform for real estate investment in the Emirates.
• ZoomProperty. A marketplace to find properties for rent and sale.
• Houzae. Online portal for personalized property search.
• Stake. A platform for creating and managing real estate investment portfolio.
• Huspy. Company providing services for buying and financing a new house.

Saudi Arabia Real Estate Market

Saudi Arabia real estate market is experiencing significant transformation and growth, driven by the government’s Vision 2030 initiative aimed at diversifying the economy and reducing dependency on oil.

Since announcing the Vision 2030 program, Saudi Arabia has become a sweet spot for businesses and has experienced rapid economy growth.

The mandate for companies to establish headquarters in Riyadh has energized the commercial real estate sector, which could be proven by high occupancy levels and increased traffic in the capital city. Real estate in Riyadh Saudi Arabia is experiencing a boom as a result, attracting businesses to capitalize on the city’s strategic importance and economic growth.

Key developments of Visio 2030 in Saudi Arabia include large-scale infrastructure projects such as NEOM, the Red Sea Project, and Qiddiya, which are set to boost residential, commercial, and tourism sectors.

The residential Saudi Arabian real estate market is also benefiting from regulatory reforms and increased foreign investment, contributing to a more transparent and investor-friendly environment.

With a young, growing population and a focus on creating sustainable, smart cities, Saudi Arabian business real estate presents ample opportunities for investors seeking long-term returns.

Some proptech companies operating in Saudi Arabia are Konn Technologies, which offer tools for real estate developers of large-scale housing communities in Saudi Arabia, and Rize, the startup introducing a flexible rent payment model for its users.

Bahrain Real Estate Market

Bahrain real estate remains stable with a growing focus on affordable housing and mixed-use developments. In 2023, apartment rates in Bahrain increased, a trend likely to continue into 2024 due to the addition of high-quality properties and regional investments. On the other hand, villa prices, influenced by plot size and local demand for real estate in Bahrain, are expected to remain stable.

The role of Bahrain’s government in real estate is significant, especially in Bahrain real estate investment sector. The Bahrain real estate market rarely faces challenges from limited land availability and regional political tensions, competing with larger neighboring markets. Therefore, the country actively promotes foreign businesses entering the country to diversify the economy and enhance Bahrain real estate investment.

Except for the local development programs in the cities, the government is enhancing regulatory frameworks to boost long-term growth and resilience in the real estate sector and engage investors.

An improved regulatory system can also be considered one of Bahrain real estate trends. Enhanced and streamlined laws and regulations for international real estate businesses make Bahrain a promising choice for investors seeking stability and growth opportunities in the region.

Bahrain proptech companies include Estater app – a convenient platform for listing, sharing, finding, or managing a property, and the first proptech startup in the country – Eglooz, which provides users with property search, online rental payments, maintenance tracking system, and other features for landlords, property management companies, and tenants.

Kuwait Real Estate Market

Kuwait boasts a traditionally conservative real estate market, characterized by strong residential and retail sectors. Demand for high quality office space and luxury residences is growing significantly, driven by government initiatives aimed at developing infrastructure, Kuwait real estate sector, and tourism.

Kuwait’s Vision 2035 plan aims to turn the country into a regional financial and commercial hub, spurring investments in infrastructure and real estate. Major government projects such as Silk City and the Kuwait National Rail Road are expected to enhance connectivity and stimulate Kuwait real estate market development across the country.

Despite minor regulatory obstacles and economic dependence, the real estate market in Kuwait offers attractive investment prospects. Due to the ongoing government initiatives aimed at economy development and diversification, real estate investors can take advantage of the opportunities in commercial real estate in Kuwait and the residential real estate sectors.

The local proptech companies are Kuwait’s startup Ajar, a cloud-based property management and rent collection platform, and Taskeen Al Oula, a platform for convenient property management.

Taskeen Application Interface | Source: Taskeen.co

Oman Real Estate Market

Experiencing steady growth but smaller than its GCC counterparts, Oman real estate sector is increasingly focused on tourism and residential developments. Government-backed initiatives such as the Duqm Special Economic Zone are pivotal in attracting foreign investors.

The country is prioritizing sustainable and affordable housing solutions to meet increasing demand. The Omani government is investing heavily in large-scale projects such as the Duqm Special Economic Zone and the Oman Tourism Strategy 2040, aimed at boosting the country’s infrastructure.

This is aimed at enhancing the real estate market Oman, similar to how Bahrain’s addition of high-quality properties and regional investments have driven up apartment rates and stabilized villa prices. Oman is leveraging foreign investments and strategic initiatives to stimulate the real estate sector and increase the existing economy growth.

Oman real estate market presents promising investment opportunities, especially in the tourism sector bolstered by government support and strategic initiatives. Real estate investors who want to diversify their portfolios should consider real estate Oman as a favorable destination due to its potential and efforts.

Proptech examples in Oman are Doorly – a chatbot that provides potential buyers with property solutions and Hope Proptech – a company which specializes in “converting real estate and construction operations into technical operation.”

Qatar Real Estate Market

Qatar real estate market is resilient and dynamic, driven by investments in infrastructure and ambitious construction projects. Qatar’s market encompasses thriving residential, commercial, and hospitality sectors, with high demand across all segments. The market is further enhanced by initiatives taken by the government to create free zones and provide incentives for foreign investors.

In 2024, the residential Quatar real estate market is projected to grow, with high demand for luxury apartments and villas. The commercial real estate sector is also anticipated to expand, particularly in areas surrounding new infrastructure projects and business districts.

Qatar’s strategic location, strong economy, and steady urbanization make it a compelling choice for real estate investment. The country’s dedication to sustainable development and smart city initiatives continue to support long-term real estate Qatar industry outlook.

GCC Real Estate Market: Final Words

The GCC real estate market is likely to become a beacon of growth and opportunity in the global economic landscape. With substantial investments coming to the countries, favorable government policies, and active urban development, the region has immense prospects in real estate investment and development. Each GCC country presents unique opportunities and challenges in the sphere of both residential and commercial real estate.

As the GCC continues to urbanize and diversify its economies, the real estate sector is poised for unprecedented growth, making it an exciting and rewarding area for real estate professionals. Whether you are a seasoned investor or a newcomer to the market, understanding the specifics of the GCC real estate landscape will be crucial in making the right decisions and achieving sustainable returns.

Ascendix – Your Partner in Real Estate

The real estate market can be highly competitive and pose significant challenges for the professionals and companies operating in it. To avoid falling behind in the real estate revolution in digital technology and keep afloat, it’s best to have a trusted and reliable partner with extensive experience in real estate and modern technology trends.

Here is where Ascendix steps in. With over 16 years in the real estate market, we’ve served major industry players like JLL, Hanna Commercial Real Estate, and Cresa, meeting their technological needs.

• Custom real estate AI tools to solidify your business, embracing technologies such as machine learning and predictive analytics;
• A business boost with our custom CRM software options, including the bespoke AscendixRE CRM, specifically for real estate industry needs;
• Seamless integration of third-party AI or proptech tools into your current infrastructure;
• Upgrading old technology stacks to meet the demands of evolving consumer expectations and technological trends;
• In-depth analytics for a comprehensive understanding of your data, helping to predict customer patterns and market changes;
• Automation of mundane real estate administrative tasks with technology to streamline operations and focus on strategic business priorities;
• Reduction in overhead caused by manual efforts with our specially developed web and mobile applications.

With Ascendix ensuring your proptech systems are set for optimal performance, your attention can stay focused on core business activities, ensuring you remain at the forefront of your industry. Reach out to Ascendix to boost your real estate business together.