The real estate sector across the Gulf Cooperation Council (GCC) experienced significant momentum in 2024, with transactions surpassing $383 billion. This marks an estimated 25% increase compared to the previous year, reinforcing the region’s appeal for both residents and investors.
Sakan’s first residential market report revealed that Dubai accounted for 54% of the total transactions, amounting to $207 billion. Saudi Arabia followed with $75.7 billion, securing a 14% share. Other markets, including Sharjah, Kuwait, and Oman, recorded impressive annual transaction growth ranging between 30 and 47%.
“The GCC real estate market stands at an exciting crossroads, with unprecedented growth opportunities shaping the future of our region. As we enter 2025, the industry continues to benefit from a combination of robust government initiatives, increased international interest, and a renewed focus on innovation.” – Abdulla Al-Saleh, CEO of Sakan.
Key Drivers Behind Market Expansion
Population growth remains a primary force behind the sector’s expansion. Urban centers in the GCC are projected to see a 30% increase in population between 2020 and 2030. The UNDP estimates that by 2030, approximately 84.3% of the region’s population will reside in cities.
Certain cities are experiencing a faster pace of growth. Knight Frank projects that Riyadh’s population will grow by 4.1% annually, reaching 9.6 million by the decade’s end. Dubai has also seen a rapid rise, with its population doubling from 1.91 million in 2010 to 3.83 million in 2024, with forecasts suggesting an additional 2.5 million residents by 2040.
The expatriate community has played a crucial role in shaping demand. The region hosts approximately 30 million expatriates, making up 52% of the population. Many of them are shifting from renting to purchasing properties, a trend especially noticeable in Dubai, where 457 plots were made available for freehold conversion in early 2025. With more expatriates settling with their families, property ownership is becoming an increasingly attractive option, reshaping market dynamics.
Luxury Property Sales on the Rise
High-end residential developments continue to attract attention across the region, with Dubai leading in ultra-premium transactions. The emirate recorded 388 property deals exceeding $10 million in the 12 months leading to Q3 2024. Qatar’s Qetaifan Island North and Saudi Arabia’s Red Sea Project are also among the most sought-after developments in this category.
Branded residences are another key segment gaining traction. The Middle East accounts for 12% of the global supply of such properties. Dubai alone has 121 branded residences, either completed or in the pipeline. Transactions in this segment represented 12.6% of the emirate’s total real estate value in the first half of 2024.
Market Trends and Price Movements
Apartments in the UAE and Qatar are among the most expensive in the region. Meanwhile, Riyadh is experiencing notable growth, with apartment prices climbing 8% in 2024. The highest price appreciation was recorded in North Riyadh, according to Knight Frank.
In Dubai, the demand for property continues to push values upward. Apartment prices surged 19.5% by the end of 2024, as reported by Global Property Guide. In contrast, Oman saw a 13% dip in apartment prices during Q3 2024, based on data from the National Center for Statistics and Information.
Villas have also seen mixed trends. North Riyadh’s villa prices grew between 14 and 17% year-on-year, while Dubai’s villa market saw gains ranging from 9 to 47%. Conversely, Bahrain’s luxury villa prices declined by 4.5% in early 2024 compared to the previous year.
Investor Returns and Rental Market Strength
By the end of 2024, the region’s average apartment yield stood at 6.8%, positioning the GCC as an attractive destination for property investors. One-bedroom apartments offered the highest returns at 7.2%, followed by two-bedroom units at 6.8% and three-bedroom units at 6.4%.
Saudi Arabia, Kuwait, and Bahrain recorded the highest yields, averaging around 7.8 to 7.9%. Riyadh’s rental market has benefited from increasing demand and rising lease rates, while Kuwait and Bahrain continue to favor rental markets due to high price-to-income ratios.
With steady population growth, evolving ownership patterns, and a strong appetite for high-end developments, the real estate sector across the GCC is poised for continued expansion in the years ahead.
Article reference: Middle East Economy.
