Saudi Press

Saudi Arabia and the world
Monday, Apr 15, 2024

Middle East real estate market to see strong growth in 2023, predicts CBRE.

Driven by elevated oil prices and resolute economic growth, the Middle East real estate market will remain strong in 2023, predicts CBRE in its latest report.
CBRE, a US-based commercial real estate services and investment firm, predicts that the Middle East real estate market will experience strong growth in 2023, driven by elevated oil prices and solid economic expansion.

The hydrocarbon and non-hydrocarbon sectors have both recovered well over the past year, with economic growth in the Gulf Cooperation Council (GCC) region surpassing the global average.

The region's GDP growth is projected to reach 2.7 percent in 2023, after a 6.3 percent average growth rate in 2022. The estimated total value of real estate projects currently under construction or planned is $1.36 trillion, with Saudi Arabia accounting for 64.5 percent and the UAE for 21.6 percent.

Other GCC countries account for smaller percentages. While real estate investment is a core part of several countries' diversification strategies, the continued development and regulation relaxation will be crucial to supporting these initiatives.

CBRE anticipates strong performance in the GCC's office market, particularly in Dubai and Riyadh, where rental rates are expected to grow due to constrained supply. However, rental growth may remain anemic in other markets due to subdued demand and oversupply. Occupier activity in Saudi Arabia will remain centered on Riyadh, where the occupancy rate is 99 percent.

CBRE expects rental rates to continue increasing in 2023 due to a lack of existing supply and strong pre-leasing activity. Villa prices are expected to continue to increase, albeit at slower rates, while apartment prices are likely to continue softening, except in Riyadh, where the rate of price growth is expected to moderate.

The return of religious tourism in Saudi Arabia will continue to drive hotel occupancy in the two holy cities and Jeddah, as well as luxury and ultra-luxury developments, leading to an uptick in average daily rates across the Kingdom.

Related Articles

Saudi Press
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh