Recent findings from Kuwait Financial Centre “Markaz” highlight a bright future for these Gulf Cooperation Council (GCC) nations. You’ll see good economic conditions, lower interest rates, and strong government rules. Let’s see each areà one by one and the outlook for 2025.
UAE Market
In the UAE, Dubai takes the major chunk of the pie. The market is setting new records everyday. By mid-November 2024, Dubai saw a total AED 457 billion (US$124.4 billion) sales value. This shows an 11% rise from 2023 and a big 72% jump from 2022.
Reason Behind UAE Dominance in Golf Real Estate market
What makes the UAE so appealing to investors? The answer is in its favorable policies & government plans, like the Golden Visa program, Dubai 2040 Master plan and Dubai Smart Rental Index. All of these have succeeded in attracting global investors to the country. Also, experts think the UAE’s non-oil economy will grow, backed by strong tourism and real estate sectors. Experts predict the UAE’s GDP will also increase by 5.1% in 2025 which also boosts real estate.
Along with previous mentions, the Dubai government also introduced Dubai’s Real Estate Sector Strategy 2033. This plan aims to boost total real estate sales to AED 1 trillion (US$227.2 billion) by 2033. This strategy will add AED 73 billion (US$20 billion) to Dubai’s GDP and increase the real estate portfolio 20 times more.
Competitive Edge and Strong Returns
When you compare Dubai with other global cities like Hong Kong, Singapore, and London, you’ll see affordability parameters. According to Knightfrank, Under $1 million, you can get 102 sqm, while in Hong Kong, you will get only 20 SQM. Good rental yields is another plus of Dubai– 6.4% in Dubai and 5.8% in Abu Dhabi – keeps drawing in investors from all corners of the globe. You can expect strong interest in off-plan properties in 2025. The residential, office, and hospitality segments also keep growing.
Saudi Arabia Market
Saudi Arabia’s real estate market is recovering and growing. The country’s GDP growth bounced back from -4.3% in Q4 2023 to 2.8% in Q3 2024. This upward trend boosts tourism, real estate, and construction sectors.
Rising Property Values
Saudi Arabia’s real estate price index is up by 2.9% compared to last year in Q3 2024. This increase also reflects a 1.6% increase in residential land prices and a 6.4% rise in commercial sector values. In Saudi, commercial real estate has seen more demand.
Challenges and Chances
While Saudi Arabia faces some fiscal pressures, with a projected deficit of 3.4% of GDP in 2025. Still, the government keeps focusing on big infrastructure and huge projects. Saudi Arabia will host The FIFA World Cup 2034 which will boost Saudi Arabia’s real estate sector. You can expect major growth in hospitality, residential, and commercial projects.
As we look to 2025, experts predict Saudi Arabia’s GDP will grow by 4.6%. A 4.4% expansion in the non-oil sector will support this growth. The oil GDP should also turn positive, thanks to the gradual easing of OPEC+ production cuts. All of these suggest a upward trend will continue in the first half of 2025.
Kuwait Market
Kuwait property market started to bounce back in the first nine months of 2024. The investment and commercial areas did well. Land prices in the Istithmari (investment) area went up by 3.3% compared to the same time last year, as of Q3 2024.
You’ll notice that land prices for commercial areas in Kuwait jumped 7.6% during this time.Keep in mind that Kuwait’s residential segment still struggled. Land prices in this area dropped 3.3% compared to last year in Q3 2024. Looking at the rental market, you’ll see small increases in apartment rents. Office rental prices however, didn’t change much.
Economic Outlook for 2025
Kuwait’s economy shows signs of growth. The country’s GDP will increase by 3.3% year-on-year in 2025. This shows a strong bounce back from the -2.7% shrinkage expected for 2024.
What’s Driving Growth
You should be aware that increased project activity and expanding credit growth will boost commercial real estate in Kuwait. The Markaz Real Estate Macro Index gives Kuwait a score of 3.5 out of 5.0 right now. This score points to steady market trust and room to grow in Kuwait’s property market.
When you look ahead to the first six months of 2025, you’ll see Kuwait’s property market will be good. Land prices and rents are expected to bounce back.
To wrap up
When you think about the above property markets, you’ll see a good outlook. Each country has its own strengths and problems, but overall, things are looking up and getting better.
In the UAE Dubai, you’ll notice a thriving market fueled by FDI and bold government schemes. Saudi Arabia presents exciting chances with the World Cup 2034 coming up and its ongoing efforts to diversify its economy. Kuwait faces some hurdles in the housing sector but shows good signs of bouncing back in its business and investment areas.
As you explore these markets, remember that government rules, efforts to vary the economy, and world events play a big role in shaping the property scene. If you’re someone who invests, builds, or just wants to know about the region’s financial future, the GCC property market in 2025 offers a scene full of chances and expansion.
