THE EVENTS THAT SHAPED MENA REAL ESTATE IN 2022:
BOLD MOVES FOR SAUDI ARABIA’S NEOM PROJECT
Throughout 2022, NEOM accelerated its commitment to innovation and continued its ambitions to provide a better future for all.
Key events that unfolded for the NEOM project:
- Construction began on and new designs were released for The Line.
- The world's largest green hydrogen production plant, ENOWA, was revealed, making a significant contribution to sustainability.
- Trojena, a ski resort, was announced, expecting to attract 700,000 visitors and contribute $800 million to KSA’s economy
- Sindalah, a luxury island and strategic gateway to NEOM via the Red Sea, was revealed.
FIFA WORLD CUP’S POSITIVE BOOST ON QATARI REAL ESTATE
Questions arose throughout 2022 surrounding the long-term impacts of the 2022 FIFA World Cup for Qatar’s real estate market.
Nevertheless, the success of the prestigious football tournament set high standards for future developments in Qatar and had many benefits for the industry. Yet these benefits expanded beyond the national borders of Qatar too!
How the 2022 FIFA World Cup impacted Qatari real estate:
- Rents rose by as much as 40% year-on-year.
- Residential sales also saw a boost in demand.
- An 89% increase in hotel rooms by 2025 was projected given significant investments in Qatar’s hospitality and tourism sector.
- Lusail City, Qatar's first smart city, featured prominently, showcasing its innovations to a global audience.
- The 88,966-person capacity Lusail Stadium hosted the World Cup final, drawing attention to the city and Qatar as a whole.
How the 2022 FIFA World Cup impacted Dubai’s real estate market:
- HNWI’s sought out real estate in Dubai as an ideal location to stay during the World Cup with attractive long-term investment prospects.
RISE IN METAVERSE TECHNOLOGY & OTHER BREAKTHROUGH INNOVATIONS
The MENA real estate industry embraced a new wave of technological advancements throughout 2022. This saw huge progress made to create a more immersive, interactive, and technologically advanced real estate industry for all players.
Breakthrough innovations in MENA real estate throughout 2022:
- Disruptive PropTech startups, including Nawy & Huspy introduced new innovations.
- Dubai expanded its metaverse economy, anticipating the creation of 40,000 jobs.
- Egypt focused on digitising its real estate sector, including the launch of the first residential complex using AI, IoT, and the metaverse in the NAC.
- Dubai's Museum of the Future launched the region's first real estate NFT collection
- The MENA region's first metaverse mansions were launched
- Abu Dhabi's Yas Island stated its aims to become a leading metaverse destination.
- Saudi Arabia’s, Dar Al Arkan completed the region's first 3D-printed villas.
DUBAI & THE UAE ENHANCED THEIR REAL ESTATE REGULATIONS.
Although real estate regulations were improved throughout the MENA region, Dubai and the broader UAE took huge steps to do so throughout 2022. Enhancing trust and boosting transparency were key factors with the aim of accelerating the real estate appeal of Dubai and the UAE on a global scale.
Key real estate regulation and transparency improvements:
- Dubai implemented new restrictions on property advertising
- A JLL index ranked Dubai's real estate sector as one of the region’s most transparent.
- The UAE introduced new real estate regulations to combat money laundering
- A new decree in Dubai was implemented to increase investment incentives.
- Real estate experts further advocated for greater transparency and sustainability.
WHAT TO EXPECT IN 2023:
ESG investments will remain key in the MENA region, as ambitious national visions focus on sustainability and carbon neutrality among other core components. This may result in further development of smart cities and green initiatives, as well as the further introduction of PropTech innovations to modernise the industry. Ultimately, this should position the region as attractive to global investment and a desirable place to live, particularly in the long-term.
However, these are merely observations of what we think might happen. Political instability on a global scale due to the conflict in Ukraine, and the implications of an inflationary environment, mean nothing is certain. So, make sure you keep up with the latest news, updates, and insights from our team at Cityscape Intelligence to stay informed on what’s to come.
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