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UAE leads GCC’s $172bn real estate market as Dubai dominates sector

Posted by Eric on December 30, 2023

The United Arab Emirates stands out as the most favored Gulf Cooperation Council (GCC) nation for real estate investments, with Dubai accounting for over 50% of transactions in the region.

The real estate sector in the Gulf Cooperation Council (GCC) is experiencing significant growth, with the United Arab Emirates (UAE) taking the lead, particularly in Dubai. According to a report by Kamco Invest company, Dubai alone accounts for more than 50% of the total land and property transactions in the region. This highlights the emirate’s prominence as a key player in the real estate market within the GCC.

An economic report emphasizes the UAE’s pivotal role in the real estate landscape, as it surpasses other GCC countries by acquiring the highest share of the total value of real estate deals conducted in the first ten months of 2023. This achievement goes beyond initial expectations, exceeding projections for the entire year of 2022. The report by Kamco sheds light on the substantial impact of the UAE on the overall real estate activity in the GCC.

In terms of monetary value, the Kamco report reveals that the total worth of real estate deals in the GCC countries reached an impressive $171.6 billion during the period from January to October 2023. This underscores the magnitude of real estate investments in the region and further underscores the UAE’s central role, particularly exemplified by Dubai, as a preferred destination for such transactions.

UAE real estate dominant in GCC

The real estate sector in the GCC witnessed notable growth, marking a substantial annual increase of 21.1%, totaling $171.6 billion for the first ten months of 2023 compared to $141.7 billion in the corresponding period of 2022.

The report by Kamco Invest company underscores Dubai’s dominant position in the real estate landscape, revealing that the city accounted for an impressive 52.1% of the total value of real estate transactions conducted across all GCC countries. This reflects Dubai’s significant contribution to the overall real estate market in the region.

A noteworthy highlight is the remarkable surge in the value of real estate deals in Dubai, experiencing a nearly 57% annual increase during the first ten months of 2023. This surge is attributed to several factors, including the escalating prices of prominent developers and a heightened demand for luxury properties, encompassing both single-family and multi-family homes valued at over AED 5 million ($1.4 million). The report sheds light on the specific drivers behind Dubai’s robust real estate performance, emphasizing the influence of upscale developments and strong demand for high-end properties.

In addition to Dubai’s strong performance, the Kamco Invest report reveals a notable 56% increase in the value of real estate transactions in Abu Dhabi during the first nine months of 2023. This surge contributes significantly to the overall performance of the UAE real estate markets, surpassing estimates for the entire 2022 at $165.8 billion.

The report highlights the resilience of the real estate sectors in the UAE and Saudi Arabia, with their stock indices showing robust performance throughout the first 11 months of the current year.

Furthermore, the Gulf real estate total yield index by Refinitiv demonstrates a sector-wide growth of 19.2%, outpacing the Morgan Stanley Gulf Index. This indicates the profitability and resilience of the Gulf real estate sector.

The growth is driven by impressive performances in real estate development indices, with Dubai leading at 32.9%, Abu Dhabi following closely at around 29%, and Saudi Arabia with a notable 21.4% surge. These positive trends across various indices underscore the overall health and prosperity of the Gulf region’s real estate markets.

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