Saudi Arabia commands over 60% of $1.68 trillion Gulf real estate projects pipeline: Report

Saudi Arabia accounts for just over 63 percent of this total with some $1.06 trillion in projects planned or under constriction while the UAE holds 24 percent of the total at $406 billion, real estate research firm CBRE’s 2024 Market Outlook for the Middle East revealed.

Bahrain, Kuwait, Oman and Qatar respectively share 1.3 percent, 3.2 percent, 5.2 percent and 2.9 percent of the total.

The total value of real estate projects in the region’s current construction pipeline marks a massive increase – up from $1.38 trillion a year earlier.

“Although there are economic headwinds at both global and national levels, the latter mostly pertaining to the oil-related activities, we note that activity in the non-oil and particularly real estate sectors remains buoyant across GCC countries,” the report stated.

GCC economic forecast 2024

In 2024, the average GDP growth across GCC countries is expected to be 2.9 percent, highlighting strengthening economic growth across the region.

However, inflation is forecast to increase slightly from 2.2 percent in 2023 to 2.4 percent this year. This projected increase is due to higher inflation expected in Bahrain and Oman.

Estimates indicate employment levels grew 3.1 percent across the GCC last year, but in 2024, employment growth is expected to slow to 1.8 percent overall, according to the report.

“The investment and development of the built environment is a core part of the diversification strategies of GCC countries. The increased levels of investment showcase the seriousness of the desire to achieve such goals,” the report stated.

Real estate development and investment will help support the growth of tourism, financial and business services, logistics, manufacturing, healthcare, education and many other sectors, CBRE said.

“As commendable as much of this development is and will be, it must be done in conjunction with the continued development of soft infrastructure and regulations in each of these countries. Without the development of this soft infrastrucure and the easing of regulations, the success of the build environment may be constrained in the long-term.”