From the UAE to Saudi Arabia, Qatar to Kuwait, the GCC countries have posted robust growth in the real estate sector, with the transactions touching $137.4 billion in 2021, a nearly 50 percent jump from the previous year.
According to data and figures tracked by many Gulf and international economic reports, the real estate sector in Qatar, Bahrain, Kuwait, Saudi Arabia, and the UAE has risen significantly compared to other countries in the MENA region.
In a recent report issued on the real estate sector of the GCC countries, the Saudi firm Kamco Invest reported that real estate transactions in those countries grew by 52 percent on an annual basis in 2021.
According to the report, the total value of real estate transactions in the Gulf countries in 2021 reached$137.4 billion, up from $90.5 in 2020 and $96.5 billion in 2019.
UAE
Dubai saw the most significant recovery in the UAE real estate market, with the total value of residential real estate transactions increasing to $35 billion by 2021.
According to a survey published this month by the global real estate consultancy Savills, real estate deals in Dubai reached their most outstanding level since the global financial crisis in 2008, increasing by 74% from 2020.
According to the estimate, the rental market in Dubai increased by 25% in 2021, with residential properties accounting for the greatest rebound in demand.
The same report revealed that the real estate sector in the UAE recorded a strong performance during 2021, following a price decline that lasted for years, as the market was able to show great flexibility during the pandemic, while the country’s economic recovery has also accelerated.
Saudi Arabia
According to data compiled by the Saudi newspaper Al-Watan, the real estate sector had the most significant value of contracts in Q4 2021.
According to the data, the contracts awarded within the specified time totaled $2.3 billion, a 21 percent rise year on year.
The commercial real estate market accounted for $1.17 billion, or 5% of all real estate payments. In contrast, the residential real estate sector accounted for approximately $400,000, or 21% of all awarded real estate contracts.
According to the same source, the real estate sector, valued in 2021 at $5.5 billion, increased by $2.80 billion, or 101 percent, compared to 2020.
Qatar
According to a report issued by the “Al Asmakh” firm for real estate projects in Qatar, the country’s real estate sector is experiencing a remarkable return, aided by the growth of financial facilities offered by local banks and banks.
The report showed that according to the Qatar Central Bank’s consolidated budget of banks, the total domestic loans and credit facilities granted by banks to the local private sector, particularly to the real estate and contractor sectors, at the end of last February amounted to around $55.3 billion.
The increase in the number of credit facilities indicates that real estate construction operations are constantly rising, and so is the increase in real estate purchases.
The report highlighted an increase in the volume of real estate transactions registered during January and February of 2020, totaling approximately $1 billion due to the completion of 838 transactions.
The report expected that the Qatari real estate sector would achieve the best returns during the rest of 2022 and in 2023.
Kuwait
There is no recent data on the Kuwaiti real estate sector, but the country’s top real estate corporations published their financial results for the previous year, which indicated that they made significant profits, indicating an improvement in the sector’s status in the Gulf state.
According to a report published last month by the “United Real Estate Company,” it earned an operational profit of $18.7 million, compared to an operating loss of $10.5 million in 2020.