The value of real estate deals in the GCC reached US$56.7 billion in the first quarter of 2024, a year-on-year increase of 23% compared to US$46.2 billion in the same period of 2023. According to KAMCO Investment Research & Strategy's report released on Wednesday, real estate transaction value growth has continued since 2023, with transaction value in the region jumping by nearly 37% to reach US$201.7 billion.
In the first quarter of 2024, the value of real estate transactions in the region increased by 23% compared to US$46.2 billion in the same period in 2013. <In the first quarter of 2024, Saudi Arabia was the main growth market in the region, with the value of real estate transactions there rising to around US$18.8 billion, up more than 70% year-on-year, as a result of high demand for the residential sector in major cities. Dubai also saw a continuation of its strong performance since 2023, with real estate transaction value growing by 22% annually in the first quarter of the year, thanks to the pricing power of leading developers and growing demand for luxury properties under construction for both single-family and multi-family homes.
The two markets, Saudi Arabia and the United Arab Emirates, contributed the most.
The two markets, Saudi Arabia and Dubai, contributed 85% of the total value of real estate transactions in the GCC in Q1 2024, offsetting declines seen in other major real estate markets in the region. The number of transactions in the GCC increased by 12.9% year-on-year in the first quarter of the year, reaching 165,836 transactions, mainly due to a jump in real estate transactions in Saudi Arabia and Dubai by more than 44% and 17%, respectively.
Gulf countries" real estate transactions increased by 12.9% year-on-year in the first quarter of the year, offsetting declines seen in other major real estate markets in the region. <These trends resulted in the average value of real estate transactions in the GCC market rising by 17% year-on-year in Q1 2024, as investors continued to value the leading real estate products available in the market despite higher prices being demanded by developers. The report expects supply in most real estate sectors to remain sensitive to potential challenges in the second half of 2024, but leading developers with strong budgets and high liquidity are able to adapt quickly to provide the right types of products for the market. KAMCO believes that the strong pricing performance of high-quality premium assets in the GCC real estate sub-sectors will continue late in the cycle, but this growth is expected to be realized only in specific markets where investors are selective and monitor economic activity and interest rates in general.
KAMCO's view is that strong pricing performance of high-quality premium assets in the GCC real estate sub-sectors will continue late in the cycle.
