Why Real Estate Is Booming in the Gulf, From Dubai to Riyadh
The real estate market in the GCC is doing very well. It is growing because of strong government plans, new technology, big infrastructure projects, and a strong economy. In 2024, the market is worth $131.9 billion, and it is expected to almost double to $252.8 billion by 2033, according to the IMARC Group. Fast population growth and more people moving to cities are increasing the need for homes and business spaces. At the same time, there is a growing focus on making the market more eco-friendly.
U.A.E.
Dubai’s real estate market had 226,000 deals worth $207.2 billion, growing 36% in the number of deals and 20% in value compared to last year. About 110,000 new investors joined, helped by the Real Estate Strategy 2033. New technology like Proptech and AI is making things faster and easier. The Dubai Economic Agenda D33 plans to make Dubai one of the top three cities in the world and double its economy by 2033. In Abu Dhabi, real estate deals reached $26.2 billion in 2024, and foreign direct investment (FDI) jumped 125% to $2.1 billion, strengthening its place as a top spot for investment, according to the Abu Dhabi Real Estate Centre.
Saudi Arabia
Saudi Arabia’s real estate market is growing fast, helped by Vision 2030 and big projects like EXPO 2030, the FIFA World Cup 2034™, and major developments like NEOM, the Red Sea project, and Qiddiya. In 2024, residential property deals in Riyadh, Jeddah, and the Dammam area reached $32 billion, up 50% from the year before, according to Deloitte. The tourism sector is also booming, with more than 100 million visitors in 2023—seven years earlier than expected. Even though residential demand is still slow, the outlook for 2025 is good. More projects, easier loans, and expected interest rate cuts should boost demand, especially for commercial and investment properties.
Kuwait
Kuwait’s real estate market recovered in 2024, recording its first sales increase since 2021. There were 4,839 deals totaling $11.3 billion, mainly driven by investment and commercial properties, according to NBK Group. Although residential demand is still low, 2025 looks positive. More projects, easier loan access, and lower expected interest rates should help increase demand.
Qatar
In 2024, Qatar’s real estate market saw $7.2 billion in deal value, which is a 9.1% drop compared to last year, even though the number of contracts grew by 9.5%, according to Qatar Real Estate Platform. The market has been stable recently, and while 2025 is expected to be cautiously positive, early signs show that some areas are already starting to improve, according to ValuStrat.
Bahrain
Bahrain’s housing market is growing, helped by a rising population, better housing affordability, and programs like the golden visa, according to Savills. However, in 2024, the number and value of property deals dropped 5% to $2.8 billion, according to the Survey and Land Registration Bureau. In November 2024, the government added 208,000 more square meters to residential areas, bringing the total to 79 million square meters, to meet housing needs and support urban growth.
Oman
Oman’s real estate sector grew strongly in 2024, with total trading reaching $8.6 billion—up 29.5% from 2023. By September, real estate contributed $2.1 billion to the country’s economy. Mortgage contracts made up most of the market at $5.7 billion, followed by sales contracts at $2.5 billion. Foreign investments also increased, with real estate deals by foreigners rising 19.4% to $201.8 million.
Published: 29th April 2025
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