Middle East Real Estate 2024 Outlook

The Middle East’s real estate market is expected to continue its upward trajectory in 2024, with strong economic growth, demand and limited supply expected to drive performance.

Key Takeaways:

1. Macroeconomic

   In 2024, GDP growth in GCC countries is expected to strengthen, with headline growth forecast to reach 2.9%. Whilst oil GDP is expected to recover with growth set to register at 2.2%, the non-oil sector is expected to show a stronger rate of growth of 2.9%.
   
   

2. Real Estate Projects

   The total value of real estate projects currently planned or under construction currently stands at an estimated $1.68 trillion, up from $1.38 trillion a year earlier. Saudi Arabia accounts for 63.1% of this total or some $1.06 trillion, followed by the UAE, which at $409 billion, accounts for 24.4% of the total.
   
   

3. Offices

   In 2024, whilst we expect the robust level of performance seen in 2023 to continue, global economic headwinds and lack of stock in key markets may hamper market activity. 
   
   

4. Residential

   Price performance in the GCC’s residential sector has almost uniformly been positive over the course of 2023, with only villas in Bahrain and apartments in Jeddah seeing prices decline. Whilst the direction of price changes has converged towards a largely positive territory, we continue to see a significant polarisation in the rates of growth witnessed, something we expect to see continue.
   
   

5. Hotels 

   In the hotels market, we expect that visitation will continue to increase across GCC countries in 2024, however, we are likely to see more fragmented performance levels over the year.