According to property market analysts at Kuwait Financial Centre, or Markaz, the real estate industry throughout the GCC is anticipated to sustain its upward momentum, supported by solid macroeconomic fundamentals, encouraging government policies, and growing investor interest.
The optimistic forecasts made by the Marmore Mena Intelligence and Markaz Mena Real Estate team are founded on a careful analysis of important macroeconomic variables, including GDP growth rates, fiscal policies, and the dynamics of the oil market.
For the second half of 2024, the UAE, Kuwait, and Saudi Arabia are expected to have Markaz Real Estate Macro Index Scores of 3.7, 3.5, and 3.6, respectively. Kuwait and Saudi Arabia exhibit increases from H1 2024 scores of 2.9 and 3.55, respectively, indicating continued robustness and potential for sustained growth within these important GCC real estate markets. The UAE maintains a stable score of 3.7.
According to the most recent UAE Real Estate Report, strong demand in the residential, office, and hospitality sectors will propel the UAE real estate market’s growth through 2024.
According to the report, strong growth is anticipated in the non-oil economy, which includes substantial contributions from the real estate sector. This growth will be supported by government support and beneficial policies like the updated Golden Visa requirements, which now improve investor eligibility.
The economic outlook is somewhat clouded by geopolitical uncertainties, but the real estate market is still thriving with record-breaking sales and price increases. According to the report, residential property prices in Dubai and Abu Dhabi saw notable yearly increases of 18.3% and 8.6% in the first quarter of 2024 alone, bolstering the UAE’s standing as a competitive luxury housing market on a global scale.
“Moreover, easing the Dh1 million minimum down payments for golden visas is anticipated to further stimulate the real estate market by attracting more international investors. Office spaces in Dubai and Abu Dhabi have also seen rent increases due to high demand, particularly in higher-grade properties, reflecting a market trend towards quality,” analysts wrote.
A rise in business and tourism has helped the UAE’s hospitality industry flourish, which has led to strong average daily hotel rates in the country’s main cities. According to Markaz analysts, the UAE real estate market is anticipated to continue growing in the second half of 2024 despite a minor slowdown in some regions and segments, such as Abu Dhabi, based on a thorough examination of numerous macroeconomic factors.
“The market’s resilience indicates a well-supported economic environment and proactive policy measures ensuring sustained growth and investment appeal.”
Despite difficult economic times, Kuwait’s real estate market is showing resilience and growth potential. The country’s GDP is expected to contract by 1.4% in 2024 after falling by 2.2% in 2023. Notwithstanding these more general economic difficulties, the non-oil sectors—particularly real estate—are expanding thanks to a projected 2.0% rise in non-oil GDP. This growth is driven by increased project activities and planned business reforms.
Following a slow period last year, the Saudi Arabian real estate market is expected to see a significant upturn in 2024, driven by expanding activities in both the oil and non-oil sectors. With an optimistic forecast of 8.1% growth in 2025, the International Monetary Fund predicts that Saudi Arabia’s real GDP will rebound from its previous contraction to 2.6% in 2024.
