A recent report says the GCC real estate sector will grow in the first half of 2024. Fueling this growth is the rise in real estate demand and favourable government policies.
Markaz, also known as the Kuwait Financial Centre, studied real estate markets in Kuwait, Saudi Arabia, and the UAE. They found steady to accelerated growth in the GCC real estate sector. Driving this growth are stable oil prices, rising demand, growing economies, and continued government support.
REAL ESTATE MARKET INSIGHTS FOR 2024
In the first quarter of 2024, Markaz's Real Estate Macro Index Scores for Kuwait, UAE, and Saudi Arabia show positive trends. They compare these scores to the second quarter of 2023 too. The reports also examine crucial economic factors like GDP growth, fiscal position, investments, inflation, and population increase. They aim to give insights into how well the GCC real estate sector is performing.
SAUDI ARABIA'S H1 2024 REAL ESTATE OUTLOOK
The Saudi Real Estate Report forecasts better economic growth in 2024. Strong performances in both oil and non-oil sectors are driving this. As a result, the report predicts a 4% increase in year-on-year real GDP growth.
However, as of late, real estate transactions have decreased. But there are still positive signs. For example, land prices are going up, and the office sector is still experiencing high demand. So the Saudi economy can expect improvements. This is at large due to increasing demand for oil, low inflation levels, and low unemployment rates.
Challenges and opportunities in Saudi real estate:
In Saudi Arabia, real estate transactions dropped by 11.3% compared to the previous year until September 2023. Despite this decrease, residential land prices rose by 1.2%. Meanwhile, the office sector demonstrated robust performance during the same period.
Looking ahead, the real estate sector in Saudi Arabia is set to speed up in the first half of 2024. Stable non-oil activities and a strong hospitality sector are supporting this growth. Additionally, there's a rise in government spending on infrastructure projects.
KUWAIT'S H1 2024 REAL ESTATE OUTLOOK
The Kuwait Real Estate Report predicts a steady market in the country for the first half of 2024. Economic growth projections and stable oil prices support this outlook. Although there are challenges like inflation and credit growth worries, confidence persists in Kuwait's real estate stability.
UAE'S H1 2024 REAL ESTATE OUTLOOK
The UAE Real Estate Report also forecasts ongoing economic growth in 2024. Factors like increased oil GDP and investor-friendly policies support this prediction. Despite potential challenges such as inflation and interest rate impacts, the Markaz report anticipates continued growth across the UAE's real estate market.
GCC REAL ESTATE MARKET: POSITIVE SENTIMENT
If one thing is clear from Markaz, it is that growth will persist in the GCC's real estate market. Yet influences on this growth vary from one country to the next. So real estate professionals and local populations alike must bear this in mind when investing within these markets.
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