The UAE is the leader of the GCC’s real estate sector, with Dubai as its star performer. Kamco Invest, an economic research firm, has published a report that shows how the UAE has outshined its peers and broken new records in the GCC’s real estate market, which is worth $172 billion. In this article, we will summarize the main points from the report that highlight the UAE’s amazing achievements.

UAE’s Growth is Unmatched in the GCC

According to the report, the UAE has the highest real estate activity among the GCC countries. The value of real estate transactions in the UAE reached $171.6 billion in the first ten months of 2023, which is 21.1% higher than the same period in 2022. Some of the factors that contributed to this growth are:

• The UAE’s resilience and strategic investments in the real estate sector
• The growing demand for luxury properties and branded residences in the UAE
• The positive impact of the Expo 2020 Dubai, which attracted millions of visitors and investors to the UAE

Dubai is the Powerhouse of the GCC

Dubai is the main reason for the UAE’s success. The city alone made up 52.1% of the total value of real estate transactions in the GCC. The report praises Dubai’s outstanding performance, as the value of real estate transactions in the city increased by almost 57% year-on-year during the same period. Some of the reasons for Dubai’s dominance are:

• Dubai’s reputation as a global hub for business, tourism, and innovation
• Diverse and attractive real estate offerings, ranging from affordable to ultra-luxury
• Supportive policies and initiatives, such as the 10-year golden visa, the 100% foreign ownership law, and the Dubai 2040 Urban Master Plan

Abu Dhabi is Catching Up

Abu Dhabi, the UAE’s capital, is also doing well. The report shows a 56% rise in the value of real estate transactions in Abu Dhabi in the first nine months of 2023, which boosted the UAE’s overall real estate market. Some of the factors that influenced Abu Dhabi’s rise are:

• Abu Dhabi’s vision to diversify its economy and reduce its dependence on oil
• Their investment in infrastructure, culture, and entertainment projects, such as the Louvre Abu Dhabi, the Warner Bros. World, and the Etihad Rail
• Competitive pricing and attractive incentives, such as the freehold ownership and the 99-year leasehold for foreigners

Which is the Best Gulf Country to Buy Property?

There is no definitive answer to this question, as different investors may have different preferences and objectives. However, based on some criteria, such as affordability, rental yields, stability, and growth potential, some Gulf countries may offer more advantages than others. According to a report by Money International, the cheapest Gulf country to buy a home is the UAE, followed by Bahrain, Kuwait, Qatar, Oman, and Saudi Arabia.

Many foreign investors buy property in the United Arab Emirates, especially Dubai. They are attracted by its high-end real estate, business-friendly policies, and very low taxes.

How Big is the Real Estate Market in the Middle East?

The real estate market in the Middle East is one of the largest and most dynamic in the world, with a diverse range of offerings and opportunities. According to a report by CBRE, the size of the real estate market in the Middle East was estimated at $1.36 trillion. The report also reveals that the Saudi Arabia has the most of this amount at $877 billion or 64.5%. The UAE is next with $293 billion or 21.6%.

How Big is the Real Estate Industry in the UAE?

The real estate industry in the UAE is an important pillar of the country’s economic diversification and development. According to Statista, the real estate industry in the UAE generated around 5.5% of the country’s gross domestic product in 2020, and is expected to increase to 6.2% by 2024. The UAE property is projected to reach $132.5 billion by 2024, growing at a CAGR of 7.4%, according to a report by Mordor Intelligence. The report also states that the residential real estate sector is the largest and most active segment in the UAE property market, followed by the commercial, industrial, and hospitality sectors.

Conclusion

The UAE is the undisputed leader of the GCC real estate market, with Dubai and Abu Dhabi as its main engines of growth, offering attractive opportunities for investors, both local and foreign, who are looking for stable returns, diversification, and growth potential.