GCC Real Estate Market Surges Past $383 Billion in 2024, With Dubai Leading the Growth
The Gulf Cooperation Council (GCC) real estate market witnessed remarkable growth in 2024, with total transactions surpassing $383 billion. This represents an impressive 25 percent increase year-over-year, highlighting the sector’s strong appeal among both residents and investors.
According to Sakan’s first-ever residential market report, Dubai emerged as the dominant player, accounting for 54 percent of the region’s transactions, amounting to $207 billion. Saudi Arabia followed, recording $75.7 billion in transactions and securing a 14 percent market share. Other GCC markets, including Sharjah, Kuwait, and Oman, also saw significant growth, with transaction increases ranging from 30 to 47 percent.
A Thriving Market Poised for Future Growth
Abdulla Al-Saleh, CEO of Sakan, commented on the market’s promising future: “The GCC real estate market stands at an exciting crossroads, with unprecedented growth opportunities shaping the region’s future. As we move into 2025, the industry continues to benefit from strong government initiatives, increasing international interest, and a renewed focus on innovation
Key Factors Driving the GCC Real Estate Boom
- Rapid Urban Population Growth
One of the biggest drivers of real estate expansion in the GCC is urban population growth. Between 2020 and 2030, the region’s city population is projected to rise by 30 percent, with 84.3 percent of the GCC’s residents expected to live in urban areas by 2030, according to the UNDP.
Some cities are growing faster than others. Riyadh’s population, for example, is expected to grow at a rate of 4.1 percent annually, reaching 9.6 million by 2030. This includes 5.5 million expatriates and 4.1 million Saudi nationals. Dubai has also experienced a rapid population surge, doubling from 1.91 million in 2010 to 3.83 million in 2024, with projections indicating an additional 2.5 million residents by 2040.
- Expats Shifting from Renting to Buying
With approximately 30 million expatriates making up 52 percent of the GCC’s population, their role in the real estate sector is evolving. Historically, expats have fueled the leasing market, but a growing number are now purchasing properties. Dubai is responding to this shift by offering 457 plots for freehold conversion starting in January 2025, encouraging expat investment. Additionally, more expats are relocating their families, which is reducing remittance outflows and further strengthening the local economy.
Dubai Leads in Luxury and Super-Prime Transactions
Luxury real estate continues to be a major attraction across the GCC. Dubai leads the market in super-prime property transactions, completing 388 deals exceeding $10 million in the 12 months leading up to Q3 2024. Other premium developments in the region include Qatar’s Qetaifan Island North and Saudi Arabia’s Red Sea Project.
Branded residences are also gaining traction, with the Middle East accounting for 12 percent of the global supply. Dubai is at the forefront, boasting 121 branded residential projects either completed or in development. In the first half of 2024, these properties contributed 12.6 percent to Dubai’s total real estate transaction value.
Price Trends: Growth Across the Board
Strong demand continues to drive property prices upward, particularly in Dubai and Riyadh. Apartment prices in Riyadh surged by 8 percent in 2024, with North Riyadh seeing the highest appreciation. Dubai’s apartment prices climbed even higher, increasing by 19.5 percent year-over-year by late 2024.
However, not all markets experienced price gains. Oman, for example, saw a 13 percent decline in apartment prices during Q3 2024. Despite this, industry experts remain optimistic about long-term growth.
When it comes to villa prices, Dubai and North Riyadh continue to experience significant appreciation. Dubai’s villa market saw price hikes ranging from 9 to 47 percent, while North Riyadh’s prices increased between 14 and 17 percent year-over-year. In contrast, Bahrain’s high-end villa prices declined by 4.5 percent in early 2024.
Conclusion: A Promising Outlook for GCC Real Estate
With a combination of rapid urbanization, growing foreign investment, and increasing demand for luxury properties, the GCC real estate market is on a strong upward trajectory. Dubai remains the leader in both volume and luxury transactions, while Saudi Arabia, Qatar, and other GCC nations continue to see expanding opportunities. As the region enters 2025, real estate stakeholders can look forward to continued growth, innovation, and a thriving property market that caters to both investors and residents alike.