GCC Infrastructure Fueling Economic Diversification and Real Estate Growth: A CBRE Report Analysis

The real estate sector in the Gulf Cooperation Council (GCC) countries is experiencing a period of rapid growth and prosperity in 2024, with a total value of $1.68 trillion in planned and under construction projects, according to the latest report by the CBRE Group. The initiatives and strategies implemented by GCC governments are major factors driving this growth, attracting both local and international investors.

Leading this growth are the UAE and Saudi Arabia, with the UAE accounting for 24.4% of the total value of projects at $409 billion, and Saudi Arabia leading with 63.1% at $1.06 trillion. Continued investment in infrastructure and business initiatives in these countries has led to increased real estate occupancy and demand for various types of properties.

The development of infrastructure in the GCC countries is also playing a crucial role in supporting economic diversification efforts and driving real estate activity. Investments in infrastructure have contributed to the overall increase in the real estate sector over the past few years.

In its 2024 market outlook report on the Middle East, CBRE Group predicts continued growth in the GCC real estate sector, attributing it to economic growth and limited supply driving market performance. The non-oil sector in the GCC is expected to grow by 2.9%, with the UAE’s real estate sector continuing to expand, supported by government initiatives and the development of new projects.

Looking ahead, Saudi Arabia is set to benefit from leisure-based initiatives diversifying demand and increasing weekend activity, while Bahrain is expected to see growth in occupancy rates of low-priced properties. Overall, the outlook for the real estate sector in the GCC remains positive, with opportunities for further growth and development on the horizon.