Value and number of real estate projects in Saudi Arabia, UAE to up over next year

Nearly all real estate professionals in the United Arab Emirates (UAE) and Saudi Arabia think building projects will increase in number and value over the next 12 months.

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A total of 93 percent of developers and contractors are confident in the two countries’ real estate markets, while nine out of ten expect the number and value of projects completed by their companies to increase over the next year, according to a Monday report commissioned by Procore Technologies.

Early in 2023, Al Arabiya English reported that Saudi Arabia’s real estate market could boom over the next ten years, with investors drawn to the Kingdom by the government’s multimillion dollar economic projects, such as NEOM.

Developing the real estate sector, is one of many goals of the Vision 2030 in which Saudi Arabia is aiming to diversify its economy and become less reliant on oil income.

The Kingdom said in March this year that it is in the final stages of establishing a new system for foreign ownership of real estate. The comment came from General Real Estate Authority CEO Abdullah al-Hammad during a televised interview.

Non-citizens would reportedly be able to purchase real estate of all kinds, including commercial, residential and agricultural.

The system would supposedly also allow ownership in Mecca and Medina, Islam’s two holy cities. It is not clear when the rule will go into effect but al-Hammad was quoted as saying that it will be “soon.”

A separate report released on Tuesday says Dubai has become a preferred destination for the world’s highly affluent to settle down, in large due to the UAE’s handling of the pandemic and the country’s convenient geographic location.

Overseas turmoil has seen an influx of Europeans migrate to the UAE and this trend is expected to continue while a predicted uptick in Chinese investors is also set to further drive growth in the luxury property segment of Dubai; the cosmopolitan city’s prime real estate market is on pace to see growth of nearly 14 percent throughout the year, the report said.

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