GCC states will continue to record relatively strong growth in real estate activity during 2023, according to asset manager CBRE.
The company’s 2023 Middle East Real Estate Market Outlook cites elevated oil prices and resolute economic growth as contributing factors to its forecast of strong occupier and investment activity levels.
Both the hydrocarbon and non-hydrocarbon sectors grew in 2022, while economic growth in the GCC of 6.3% exceeded the global average of 2.7%.
The economic backdrop will provide the support required for local economies to launch the various real estate initiatives needed to meet their diversification targets, states the CBRE report.
The total value of real estate projects currently planned or under construction within the GCC now stands at an estimated US$1.36 trillion.
Saudi Arabia accounts for 64.5% of this total, or some $877 billion, followed by the UAE, which at $293 billion, accounts for 21.6% of the total.
©2023 funds global mena