In a significant economic revelation, the UAE has emerged as the frontrunner among Gulf Cooperation Council (GCC) countries, securing the lion’s share of real estate transactions in the first ten months of 2023. This accomplishment has surpassed earlier predictions for the entire year of 2022.
Kamco Invest report on GCC real estate
Kamco Invest Company released a comprehensive report indicating a substantial upswing in the real estate sector. The total value of real estate deals in GCC countries reached a staggering $171.6 billion from January to October 2023, showcasing a remarkable annual growth of 21.1 percent compared to the same period in 2022 when it stood at $141.7 billion.
Dubai dominates with over 50% share
Dubai has emerged as the powerhouse, contributing to 52.1 percent of the total value of real estate deals across the GCC nations. The city’s real estate market experienced an astonishing 57 percent annual surge in the first ten months of 2023. This surge is attributed to the escalating prices of leading developers and a heightened demand for luxury properties, including single and multi-family homes valued at over Dhs5 million.
Abu Dhabi’s impressive 56% jump
The report highlights Abu Dhabi’s remarkable performance, with a substantial 56 percent increase in real estate deals during the initial nine months of 2023. This surge significantly influenced the overall value of real estate deals for the UAE markets, surpassing the projections for the entire 2022, which stood at $165.8 billion.
Strong performance of real estate stock indices
Kamco Invest’s report underscores the robust performance of real estate stock indices in both the UAE and Saudi Arabia. These indices have witnessed significant gains throughout the first 11 months of the current year.
Gulf real estate total yield index
Refinitiv’s Gulf real estate total yield index reveals a remarkable 19.2 percent growth, outshining the Morgan Stanley Gulf Index. This growth is fueled by the outstanding performance of real estate development indices in Dubai (32.9 percent), Abu Dhabi (29 percent), and Saudi Arabia (21.4 percent).
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As the real estate landscape in the Gulf region continues to evolve, these figures underscore the resilience and dynamism of the UAE’s property market, positioning it at the forefront of the region’s economic growth.
tanvir@dubainewsweek.com
