The real estate sector of the Midden -East has always been attractive for investors around the world – private capital flow to the region and repeating good returns has now been done for Quito Subime. But Post-Pandemic, the real estate market of the region, in particular in the GCC hub, quickly becomes an outperformer when drawing private capital worldwide. The demand for real estate remains high – the holiday home sector is nearby, residential units do a raing company, office space has a number of Taers and the retail trade is booming, with new new projects on the anvil.
Midden -Oost: The region of choice for investors
As I said before, the Real Estate Market of the Middle East has traditionally been an attractive economic sector and a preference of research. This is due to several reasons. The real estate market is stimulated by a strong demand, thanks to a growing well -to -do domestic population; A constant influence of rich immigrants, many of whom ultimately take permanent stay, especially in the VAE, Qatar and Kuwait or buy a home that serves as a second home; Good quality of life, good government and stable political atmosphere; And last but not least, surplus liquidity of oil.
Progressive and proactive governments of the Middle East have the importance of the real estate sector, which has played as a catalytic role in shaping their economies and the processing of this dependence on oil. Local governments in cities such as Dubai, Abu Dhabi, Doha, Kuwait City, Riyadh, etc. are actively working on setting up ambitious smart cities and urban development projects.
Dubai is one of the world’s most affordable luxury home markets. The residential real estate market of Qatar will register a CAGR of more than 6.24% between 2023 and 2028(1)” The Vision 2030 agenda of Saudi -Arabia helped to grow its economy by 8.8% in 2022(2) – The highest level for every major economy – and the real estate sector of Kuwait has caused recesses of the lows caused by the pandemic. A lot is happening!
The real estate markets of the Middle East literally feed an economic flowering. From Dubai to Riyad, house prices are rising and rental prices rise as international companies set up their offices or represent their existing in these dynamic cities. The pro-business mentality of the GCC countries, in particular the VAE, significantly improves the attraction of the region as the place to invest private capital. That is the demand for prime residential real estate in sub Summies that register prices phenomenal increases. Take the case of Dubai, where the most important house prices increased by 44% in 2022.
In general, strong fundares, government support, stable population growth and the associated need for living spaces, the safe harbor image of the GCC region and the promise of good quality of life, safety and safety are of the reasons why private capital capital is on the way to the Middle East. The region has a lot for it and will certainly offer a good return on the investment. While both real estate developers and investors redefine and evolve their business models and strategies to drive the Golf, the return will only rise.
- https://www.mordorintelligence.com/industry-reports/qatar-reagial-real-estate-market
- https://content.knightfrank.com/research/1757/documes/en/the-wealth-report-middle-Aast-2023-9993.pdf
