GCC Real Estate Market Maintains Strong Growth Momentum
Kuwait Financial Centre released a comprehensive review of the region's real estate performance, analysing key developments in Kuwait, Saudi Arabia, and the UAE for the first half of 2025. The report also provided forecasts for the second half of the year, indicating a steady continuation of the growth observed in recent months.
According to Markaz, sales activity was particularly robust in all three nations, with high investor confidence and increasing demand across various segments of the market. In Kuwait, residential sales saw a surge, while commercial properties experienced rising demand, partly due to expanding business operations. The hospitality sector also benefited from increased tourist arrivals and a surge in business-related travel, further bolstering the performance of the market.
Saudi Arabia’s real estate market mirrored these trends, particularly in the residential sector, where increasing demand for high-quality housing was evident. The kingdom’s efforts to improve its infrastructure and support the Vision 2030 reforms were also reflected in the growth of commercial real estate. These reforms are aimed at diversifying the economy and encouraging private investment, which continues to attract both domestic and international investors.
In the UAE, the real estate market maintained its strength, underpinned by Dubai’s performance as a global hub for both business and tourism. The demand for luxury properties remained high, with foreign investors continuing to target high-end developments. In addition, commercial real estate saw sustained interest, particularly in free zones and areas associated with major economic development projects.
The upward trajectory of property values was another key driver of market performance across the GCC. Despite global economic challenges, including inflationary pressures and interest rate hikes, the GCC's real estate sector continued to show resilience. Property values in prime locations, particularly in Dubai and Riyadh, remained strong, reflecting continued investor confidence in the region's growth potential.
Markaz’s outlook for the second half of 2025 indicates that the GCC real estate market will continue to benefit from macroeconomic recovery, with strong investor sentiment expected to sustain market activity. The ongoing trend of infrastructure development, regulatory reforms, and economic diversification plans across the region is poised to further enhance market performance.
The UAE is expected to see sustained growth in the luxury residential market, with the ongoing demand for high-end properties, particularly from foreign investors. Meanwhile, Saudi Arabia is likely to benefit from continued efforts to modernise its infrastructure, providing opportunities for both residential and commercial real estate. As the kingdom moves towards fulfilling its Vision 2030 ambitions, the demand for real estate is anticipated to grow, further diversifying the market landscape.
Kuwait’s real estate market, while smaller in comparison, is projected to maintain steady growth, supported by a stable economic environment and a focus on enhancing its business and residential infrastructure. With the government’s efforts to attract foreign investment, the residential sector is expected to remain a key growth driver.
For the commercial sector, demand for high-quality office spaces across the GCC is anticipated to remain strong. However, as hybrid work models continue to evolve, there may be a shift in demand toward flexible office solutions and co-working spaces, which could influence market dynamics in the second half of the year.
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