Middle East Real Estate Market: Current Analysis and Forecast (2023-2030)

Real estate refers to land, buildings, and other structures, as well as the rights to use or own them. It includes vacant land, commercial properties like office buildings and retail stores, industrial sites, multi-family residences like apartments, and single-family homes. Real estate investors buy and hold these properties to earn rental income or sell them for a profit after they appreciate in value over time. Additionally, governments levy property taxes on real estate to fund public services such as schools, roads, and law enforcement agencies.

The Middle East Real Estate Market is expected to grow at a strong CAGR of 6.1% during the forecast period (2023-2030). The real estate market in the Middle East has experienced rapid growth in recent years, with many countries in the region witnessing significant increases in property values and investment opportunities. The UAE, particularly Dubai, has been at the forefront of this growth, attracting both local and foreign investors with its world-class infrastructure, luxurious lifestyle options, and favorable government policies. Other countries such as Saudi Arabia, Qatar, and Kuwait have also seen substantial development in their respective markets due to factors like economic diversification initiatives and large-scale projects like megacities and theme parks. However, it is important to note that the regional market faces challenges like fluctuating oil prices and geopolitical tensions which can impact investor confidence. Overall, the outlook for the Middle Eastern real estate market remains positive long term as governments continue prioritizing economic diversification plans and investing heavily in infrastructure projects.

Based on the property type, the market is segmented into offices, residential, hotels, retail, industrial and logistics, and others. Residential segment held a significant share of the market in 2022. Due to population expansion and changing living preferences, there has been a rising demand for residential properties across various cities throughout the Middle East over recent years. In cities like Riyadh, Jeddah, and Doha, high-end gated communities offering modern amenities are becoming increasingly preferred by locals seeking comfortable homes and expats looking for quality housing options. This surging interest in residential properties has prompted developers to focus more on delivering family-friendly environments with recreational facilities rather than solely targeting commercial ventures.

For a better understanding of the market adoption of the real estate, the Middle East market is analyzed based on its worldwide presence in countries such as Saudi Arabia, UAE, Kuwait, Bahrain, and the Rest of MENA. Saudi Arabia, the largest economy in the Gulf Cooperation Council (GCC), has also witnessed a remarkable growth in the real estate market. Saudi Arabia's Vision 2030 has brought about a paradigm shift in the kingdom's economic landscape, significantly impacting the real estate sector. Large-scale projects, including NEOM, a futuristic city, and the Red Sea Development, a luxury tourism destination, have become focal points for domestic and international investment. The government's decision to open up the real estate market to foreign investors has sparked increased competition and innovation. This strategic approach aligns with the broader goals of Vision 2030, aiming to reduce the nation's reliance on oil and position Saudi Arabia as a key player in the global real estate arena. For Instance. The real estate sector contributes 7% of GDP to Saudi Arabia's economy, and the government aims to increase this contribution to 8.8% by 2030.

Some of the major players operating in the market include Emaar Properties, Aldar Properties, Nakheel, Damac Properties, Arada, Sobha, Bahria Town, Eagle Hills, IMKAN, Wasl Asset Management Group.