The Middle East’s real estate market has long served as a cornerstone for economic development, shaped both by global forces and by the distinct regional strategies that drive growth. In 2024, the sector once again demonstrated considerable resilience in the face of international uncertainties, including lingering geopolitical tensions such as the conflicts in Israel and Ukraine.
Despite these challenges, prominent markets in the region—the UAE, Saudi Arabia, Qatar, and Egypt—showed remarkable adaptability and provided strong signals of long-term promise.
This success stemmed from a confluence of factors, including visionary government policies, the pursuit of ambitious “giga” projects, and growing interest from foreign institutional and individual investors. As a result, the Middle East continues to reinforce its reputation as a compelling destination for real estate investments.
Year of resilience and transformation
In 2024, the Middle Eastern real estate sector demonstrated a robust ability to withstand external pressures. Although the broader geopolitical environment could have undermined investor confidence, most key markets in the region were buoyed by stable oil prices, which helped ensure the continuity of major infrastructural developments.
Governments in Saudi Arabia and the UAE capitalised on these stable revenues to fund real estate and related non-oil projects, supporting diversification initiatives that have become increasingly central to national economic strategies.
This was especially evident in Saudi Arabia, where the ambitious diversification agenda called “Vision 2030” encompasses a shift away from a purely hydrocarbon-based economy toward a more multifaceted growth approach.
Rapid urbanisation emerged as an additional factor driving market expansion. Metropolitan areas such as Dubai in the UAE, Riyadh in Saudi Arabia, and Doha in Qatar continued to experience growing populations partly due to a steady influx of expatriates and high-net-worth individuals. These new residents spurred demand for residential as well as commercial real estate.
In Dubai alone, plans are set to develop over 28,700 villas by 2025 to meet the needs of the expanding expatriate population and wealthy global buyers seeking luxury accommodation. Across different cities, a rise in commercial real estate projects supported the growth of multinational and local businesses, while hospitality developments benefited from the revival of international travel and major events.
The Emirati city in January 2025 witnessed the administration approving the implementation of a series of housing projects worth AED5.4 billion (USD 1.5 billion) to benefit citizens across different areas of Dubai.
The projects will see 3,004 new homes being built for Emirati citizens, of which 1,181 units will come up in Latifa City for beneficiaries under the housing loan category. For beneficiaries, the projects envisage 606 new homes in Al Yalayis 5, 432 homes in Wadi Al Amardi, 398 homes in Al Awir 1, 200 homes in the Makan area of Hatta, 120 homes in Oud Al Muteena, and 67 homes in the countryside and rural areas of Dubai.
Despite facing wide-ranging global uncertainties, the Middle East’s major real estate markets stepped into 2024 with a renewed sense of purpose. National diversification agendas, favourable regulatory reforms, and the expansion of mixed-use urban developments all contributed to the sector’s dynamism.
Real estate symbolises national progress and reflects a country’s economic aspirations. Current trends emphasise sustainability, smart city technology, and integrated community living.
The key markets
The real estate landscape in the Middle East includes multiple countries at different stages of economic and infrastructural development. While smaller or emerging markets contribute to the diversity of the region’s property sector, four nations in particular—the UAE, Saudi Arabia, Qatar, and Egypt—have captured international attention with their rapid growth, bold policy moves, and large-scale real estate initiatives.
Each exhibits distinctive features: the UAE showcases its global-city credentials and investor-friendly regulations, Saudi Arabia pushes transformative “giga” projects through Vision 2030, Qatar builds on its post-FIFA World Cup momentum, and Egypt capitalises on a huge domestic market and strategic reforms to attract greater foreign investment.
UAE remained a leading indicator of real estate prowess in the region in 2024, with Dubai in particular achieving new benchmarks in teams of transaction volumes and property valuations.
Knight Frank’s 2024 Global Residential Review noted that Dubai’s real estate market was among the fastest growing in the world, with a 21% price increase and approximately 180,900 transactions totalling AED 522.1 billion (USD 142.1 billion). This performance was attributed to the city’s business-friendly ecosystem, zero personal income tax, and an established global reputation as a hub for finance, tourism, and technology.
A policy milestone that continued to boost Dubai’s real estate appeal was the Golden Visa programme, under which long-term residency permits were issued to tens of thousands of investors, entrepreneurs, and professionals. By 2024, more than 100,000 investors had leveraged this policy to establish or expand their presence in Dubai, injecting significant capital into the property market.
Another essential piece of Dubai’s success story is its emphasis on infrastructure and connectivity. The city’s airports collectively rank among the world’s busiest, while new expansions at Al Maktoum International Airport and enhanced roadway systems reinforced Dubai’s role as a major global transit point.
Sustainability and smart city initiatives have also become integral parts of Dubai’s planning. Under the Dubai 2040 Urban Master Plan, large swaths of the city are being reshaped to accommodate green spaces, renewable energy solutions, and eco-friendly transportation. Estimates suggest that by 2025, over a third of newly constructed office buildings will have LEED certification or similar sustainable credentials.
Meanwhile, major mixed-use developments in areas such as Dubai Creek Harbour and Dubai South are introducing innovative designs meant to foster walkability, efficient public transport, and the integration of retail, residential, and commercial areas.
While Dubai naturally garners much of the publicity, Abu Dhabi—the capital of the UAE—sustains its own real estate expansion by diversifying its economy away from reliance on hydrocarbons. The city aims to become a cultural hub through projects like the Louvre Abu Dhabi, along with significant developments on Saadiyat Island and Al Reem Island.
Taking the game to the next level, the Dubai Land Department recently launched the Smart Rental Index 2025, marking a transformative milestone in regulating and developing the Emirati city’s real estate sector. This index integrates the latest technologies and real estate expertise, aiming to provide exceptional services that meet the needs of all stakeholders in the real estate market. It further enhances transparency and fairness in determining rental values, aligning with Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033 objectives.
Streamlined foreign ownership rules and enhanced regulations have helped draw more international investors to Abu Dhabi, making it an increasingly appealing destination for those seeking returns from luxury and mid-market residential developments.
Saudi Arabia: A giant in the making
Saudi Arabia has been on a clear path of real estate transformation, guided by “Vision 2030.” This national strategy seeks to diversify the Kingdom’s economy, cultivate private-sector participation, and position Saudi cities as world-class destinations for investment and lifestyle.
Substantial investments in the Kingdom’s giga projects, such as NEOM, the Red Sea Project, and Qiddiya, are driving this growth. These developments are not only designed to generate global excitement but also to advance Saudi Arabia’s sustainability and innovation credentials. Mega-scale ventures serve as catalysts for economic diversification, cultural enrichment, and technological advancement.
The residential and commercial aspects of these projects are expected to attract significant attention from institutional investors. They aim to enter the Saudi market early, anticipating future appreciation as these cities and attractions come online.
The government has also introduced incentives to stimulate local housing demand, including subsidised mortgage programmes. Moreover, significant efforts are being made to liberalise aspects of the economy, such as the relaxation of certain social regulations and a push for greater tourism, all of which translate into further real estate opportunities.
Luxury housing is particularly on the rise in Saudi Arabia, spurred by a growing affluent population and expatriates who prefer secure, gated communities and amenities that cater to upscale tastes. Market analysts predict that by 2025, the Saudi residential real estate market might reach a valuation of about USD 1.64 trillion, driven partially by the synergy of ongoing giga projects and progressive social reforms.
Qatar: Building on momentum
Qatar’s real estate sector has continued to build on the legacy of hosting the FIFA World Cup 2022. Although the event was a global showcase for Qatar’s infrastructure capabilities, the country’s real estate market has broadened its focus beyond short-term gains tied to sporting events.
In November 2024 alone, real estate transactions were estimated at QAR 1.14 billion (USD 311.55 million), with Doha, Al Rayyan, and Al Dhaayen municipalities leading in financial value and volume.
Legislative efforts to open the real estate market to foreign buyers have energised demand for properties in specific freehold areas. Luxury developments and integrated city projects such as Lusail City exemplify Qatar’s ambition to develop master-planned urban centres that emphasise sustainability, cutting-edge technology, and a high standard of living.
Legislative efforts to open the real estate market to foreign buyers have energised demand for properties in specific freehold areas. Luxury developments and integrated city projects such as Lusail City exemplify Qatar’s ambition to develop master-planned urban centres that emphasise sustainability, cutting-edge technology, and a high standard of living.
This planned city north of Doha showcases innovations in energy management, urban mobility, and architectural design. Another major locus of real estate dynamism is Education City, which hosts world-renowned universities and research institutions and has spurred demand for quality student housing, commercial facilities, and residential areas that cater to a cosmopolitan population.
Qatar’s tourism sector continues to evolve, supported by high-profile conferences, cultural festivals, and additional sporting events that attract global visitors. The hospitality market has therefore performed strongly, with hotels, serviced apartments, and short-term rentals all benefiting from the country’s drive to expand its global profile.
As Qatar moves forward with its “Vision 2030,” a framework meant to further diversify the economy and modernise the country’s infrastructure, the real estate sector is expected to remain a key channel for foreign investment.
Egypt: A market of contrasts
Egypt stands as one of the largest and most populous Arab countries, making its real estate market a subject of keen interest for local as well as international investors. Even in the face of currency devaluations and inflationary pressures, Egypt’s property sector has shown remarkable tenacity.
The Aqarmap real estate index reported a rise of 39.3% in property prices in the first quarter of 2024, building upon a 22.3% increase in 2023. This trend reflects the gap between a growing need for housing and the available supply in a country where the population now exceeds 100 million.
Legislative changes that loosened restrictions on foreign land ownership have played a significant part in sustaining market momentum. Foreign investors keen on affordable entry points see Egypt as an opportunity, especially in emerging areas of New Cairo, the coastal city of Alexandria, and new resort developments along the Red Sea.
On the other hand, the devaluation of the Egyptian pound has weakened domestic buying power, leading to disparities in who can afford property. Despite these currency-related challenges, the sheer scale of demand—driven by high birth rates, continued urban migration, and government-led infrastructure projects—points to steady growth over the long term.
Initiatives such as the development of a New Administrative Capital and expansion along the Suez Canal corridor serve as examples of Egypt’s commitment to reshaping its urban landscape.
Trends shaping the future
Across these diverse markets, several emerging trends promise to influence real estate trajectories in the Middle East. One prominent theme is the focus on luxury real estate. Dubai, for instance, reported a surge in high-end property transactions by 62% during 2024, with prices per square foot often topping AED 3,200.
Upscale developments in Saudi Arabia resonate with affluent buyers who favour opulent villas, advanced security features, and lifestyle amenities. The increased flow of expatriates and tourists, along with relaxed ownership regulations, further supports this segment.
Sustainability and technology-driven innovations are increasingly integral to how Middle Eastern cities are being designed and managed. Projects like Saudi Arabia’s NEOM and Abu Dhabi’s Masdar City highlight the region’s determination to pursue green building standards, advanced energy solutions, and smart city technologies.
The goal is not merely environmental responsibility but also the attraction of global investors who integrate environmental, social, and governance (ESG) principles into their portfolios. Meanwhile, local authorities are encouraging sustainable construction by implementing stricter building codes and providing incentives for LEED-certified developments.
The hospitality and tourism sector has also regained momentum, with short-term rentals becoming more popular in places like Dubai, Riyadh, and Doha. The occupancy rates in short-term rental properties saw an upswing, especially as global travel curbs eased and the region continued to host marquee events and conferences.
Regulatory frameworks in the UAE and Saudi Arabia have introduced guidelines for short-term rental platforms to ensure quality control, safety, and taxation compliance, which in turn strengthens investor and tenant confidence.
Further boosting market vibrancy is the rapid adoption of technology in real estate services. Investors and potential buyers can now conduct virtual tours of properties, complete remote paperwork, and make digital payments. Governments are likewise exploring blockchain solutions for property registration to enhance transparency and reduce fraud.
PropTech start-ups have proliferated, particularly in the UAE and Saudi Arabia, offering specialised platforms for property management, crowdfunding, and AI analytics that help developers optimise pricing strategies and building design.
Forecast for 2025
In 2025, the Middle East’s real estate market is expected to continue expanding. The UAE, with Dubai and Abu Dhabi at the forefront, may see price growth of between 5% and 8% for residential properties, with prime locations experiencing even higher margins due to sustained interest in luxury living.
Saudi Arabia’s drive to achieve “Vision 2030” milestones should reinforce the long-term trajectory of large-scale developments like NEOM and Qiddiya, drawing high-level corporate relocations and new waves of international tourists. Analysts project an annual growth rate of around 1.64% in Saudi Arabia’s residential sector, culminating in a market worth around USD 1.64 trillion.
Qatar’s Lusail City and other major projects tied to Qatar National Vision 2030 will continue attracting both FDI and residents seeking modern, amenity-rich neighbourhoods. The country is keen to preserve the momentum generated by the FIFA World Cup 2022, thus focusing on diversifying its entertainment, cultural, and business event offerings.
Even Egypt, despite its macroeconomic challenges, is on track for steady growth thanks to an ever-present need for housing in a rapidly increasing population. Foreign investors see a combination of comparatively low costs, reform-driven policy shifts, and a robust tourism scene as incentives to enter Egypt’s market.
Although macroeconomic factors, particularly oil prices and global monetary policies, could influence the pace of real estate transactions, collective confidence in the Middle East’s prospects remains evident. As other regions grapple with uncertainties tied to inflation, recession risks, or political upheavals, the Middle East stands out for its strategic policies aimed at diversification and openness to foreign capital.
Strategic considerations for investors
Investors interested in the Middle East’s property market can consider various strategies. One approach is to diversify across multiple countries and asset classes, spreading risk through exposure in luxury and mid-tier residential developments, office complexes, hospitality ventures, and retail.
Another consideration is to stay consistently informed about policy changes, as decisions around foreign ownership, visa regulations, and tax incentives can significantly shift market dynamics quickly.
Sustainability is growing in importance, and developments that meet or exceed green building standards tend to attract a more globally conscious clientele and are seen as future-proof in an era increasingly shaped by ESG considerations.
Technological advancements should also feature prominently in any long-term plan, as blockchain-based property transactions, AI-driven analytics, and the rise of PropTech startups will reshape how developers, brokers, and buyers interact.
While certain geopolitical factors could always alter the outlook, the overall expectation is for a steady march of growth, backed by megaproject announcements, progressive economic policies, and the region’s robust cultural and commercial ties to both East and West.
From the attention-grabbing developments in Dubai and Abu Dhabi to the transformative giga projects in Saudi Arabia, from the post-World Cup expansions in Qatar to the large-scale housing demands of Egypt, the region presents a vivid tableau of real estate evolution. Governments have embraced modernisation, sustainability, and international best practices at a scale that few other parts of the world can match.
The outlook for Middle Eastern real estate remains optimistic, underpinned by a constellation of positive indicators: supportive government policies encouraging foreign investment, strong population growth in key cities, ambitious infrastructure ventures that connect and enhance urban environments, and ongoing technological leaps shaping how property is built, marketed, and managed.
Sustainability efforts are gaining traction in every major market, a direction that not only addresses environmental concerns but also aligns with the preferences of a growing class of conscientious global investors.
Potential geopolitical developments and external economic variables still present challenges, but the region’s dedication to resilience and long-range planning has repeatedly proven its capacity to overcome hurdles.
As a result, analysts envision more record-breaking transactions, the arrival of cutting-edge architectural marvels, and deeper commitments to green, tech-savvy communities across the Middle East.
This blend of innovation, strategic foresight, and cultural evolution keeps the Middle East firmly in the global spotlight. From ultra-luxury beachfront towers in Dubai to futuristic urban experiments in Saudi Arabia’s NEOM, and from the growing modern cityscapes of Doha to the sprawling developments around Cairo’s New Administrative Capital, the market continues to provide fertile ground for visionary developers, astute investors, and an increasingly sophisticated pool of local and international residents.
As 2025 unfolds, these intersecting forces are set to shape one of the most dynamic and resilient real estate arenas on the planet, ensuring that the Middle East remains a critical focus for global property stakeholders well into the future.