Amidst the rapid economic dynamism in the Arabian Gulf, the real estate sector continues to consolidate its position as one of the most vibrant and attractive sectors for investment. After a strong performance in the first half of 2025, indicators confirm that the real estate markets in Saudi Arabia, Kuwait and the UAE are poised for further growth in the second half of the year, benefiting from growing demand, rising market values, and government policies supporting urban development.
The Kuwait Financial Center "Markaz" explained in its latest report that the real estate sector in the region is remarkably strong, supported by rising sales and growing demand for residential, commercial and hotel units, as well as the continued recovery of Gulf economies, which strengthens expectations to maintain the upward momentum in the coming period.
Markaz said in its latest report that the real estate sector in the region is remarkably strong, supported by the rise in sales and growing demand for residential, commercial and hotel units.
Growth in the Saudi market
In Saudi Arabia, the real estate market recorded significant growth during the first quarter of 2025, as the price index rose by 4.3% year-on-year and the value of real estate sales jumped by 37%, driven by an increase in residential prices by 5.1% and commercial by 2.5%.
In Kuwait, the real estate market continued to grow. <Kuwait's real estate sector continued its recovery path, with sales value rising by 45% to reach 896 million dinars in the first quarter of the year, with notable growth across all sectors. land prices and rents rose, while the number of transactions increased by 20.9%. Kuwait's GDP is expected to grow by 1.9% in 2025 after a contraction of 2.8% in 2024, supported by improving oil output and stabilizing non-oil sectors.
In the UAE, the real estate market continued to grow, with land prices and rents rising, while the number of transactions increased by 20.9%. <In the UAE, the real estate market continued to attract investors strongly, with the value of transactions reaching AED 239 billion in the first quarter only, of which AED 142 billion in Dubai through more than 45 thousand sales transactions, an increase of 30% in value year-on-year. The UAE market also attracted more than 110,000 new investors, a year-on-year growth of 55%. Markaz concluded that these indicators reflect the position of the GCC real estate sector as one of the main drivers of economic growth in the region, with expectations of continued expansion during the second half of 2025, supported by a flexible economic environment and growing demand that reinforces the Gulf's attractiveness as a global investment center.
