Navigating Human Capital Trends in the GCC Real Estate Industry: Insights from Aon

As the real estate market in the GCC region continues to flourish, real estate companies are facing a number of human capital challenges that are pushing them to rethink their employee value propositions. According to a study by Aon, companies in the GCC are experiencing wage inflation and high attrition rates among their talent pools, prompting them to reassess their rewards strategies.

Vamsi Srinivas, a partner at Aon, emphasized the need for real estate companies to stay current with key human capital trends and to rethink their compensation, work culture, and employee recognition programs in order to maintain a competitive edge. In Saudi Arabia, the competition for talent is expected to intensify due to the booming real estate development in the Kingdom.

Saudi Arabia and the UAE are competing to attract new talent, with each country focusing on different aspects of the real estate sector. While UAE companies are mostly focused on sales, KSA companies are more invested in infrastructure development and construction. The demand for niche technical skillsets in Saudi Arabia often leads to higher pay for qualified professionals, creating upward pressure on senior management salaries.

In both Saudi Arabia and the UAE, the real estate market is thriving, with demand and prices on the rise. Luxury home prices in Dubai surged by 48% last year, while home prices in Saudi Arabia’s most attractive cities, like Riyadh and Jeddah, are also increasing.

As real estate companies in the GCC navigate these challenges and opportunities, the need to rethink their human capital strategies will be crucial for their continued success in a dynamic and competitive market.