Gulf Real Estate Sector Poised for Growth in First Half of 2024, Says Report
RIYADH: The Gulf real estate sector is gearing up for a period of growth in the first half of 2024, as per a recent report by the Kuwait Financial Centre (Markaz). The report, which focuses on real estate markets in Kuwait, Saudi Arabia, and the UAE, highlights key factors driving this growth.
The report indicates that the Gulf Cooperation Council real estate sector is set to experience steady to accelerated growth, fueled by stable oil prices, increasing real estate demand, strong economic growth, and supportive government policies.
Markaz’s Real Estate Macro Index Scores for Kuwait, UAE, and Saudi Arabia in the first quarter of 2024 show positive trends compared to the same period in 2023. The analysis dives into crucial macroeconomic indicators such as GDP growth, investments, inflation, and population increase to provide a comprehensive outlook for the region’s real estate sector.
Specifically focusing on Saudi Arabia, the report anticipates improved economic growth in 2024, driven by strong performances in both oil and non-oil sectors. The Kingdom’s GDP growth is expected to rise by 4 percent year-on-year, showcasing positive developments in the economy.
Despite a decline in real estate transactions, Saudi Arabia is witnessing rising land prices and continuous demand in the office sector. The contribution of non-oil activities and government spending is projected to further boost economic performance in the Kingdom.
The report also highlights the insights on Kuwait and the UAE, anticipating stable markets supported by economic growth projections and investor-friendly policies, respectively.
In conclusion, the report by Markaz sheds light on the promising outlook for the Gulf real estate sector in the first half of 2024. With favorable macroeconomic factors, increased demand, and government support, the region is poised for growth in the real estate market.
