The global real estate market is projected to surpass $1 trillion in investments by 2026, with a robust recovery expected to begin in 2025. According to Savills, investment turnover will grow by 27% to reach $952 billion by 2025. The Middle East and North Africa (MENA) region, including key players like the UAE, Saudi Arabia, and Egypt, is set to benefit significantly from these trends, driven by infrastructure development, visionary policies, and growing demand across various sectors.
Optimism in Global Real Estate
A survey of Savills’ 33 heads of research reveals increased optimism across all asset classes globally. In the MENA region, governments are focusing on ambitious urban development projects and foreign investment initiatives, creating favorable conditions for growth.
Prime office spaces are identified as a critical driver in MENA, with increased leasing activity and rental growth expected in cities such as Dubai and Riyadh. Saudi Arabia’s Vision 2030 and transformative developments are fueling demand for Grade-A offices and luxury residential properties, solidifying the Kingdom’s appeal as a premier investment destination.
Strong Growth in Key Markets
Savills researchers are particularly optimistic about rental growth and leasing activity in prime office markets worldwide, with Saudi Arabia, the UAE, India, the UK, and Spain leading the charge. Secondary office markets, which have undergone price adjustments, are also poised for modest growth, attracting value-add and opportunistic investors in regions like the Middle East, India, and Japan.
The industrial and logistics sector is gaining traction, fueled by the region’s expanding e-commerce market and strategic role in global trade routes. Dubai and Jeddah are expected to capitalize on this trend with advanced logistics facilities and distribution hubs.
In Egypt, government-led urban expansion initiatives, including the New Administrative Capital, are spurring growth in residential and retail sectors, enhancing the country’s investment appeal. Mixed-use developments and high-quality shopping destinations are also driving improvements in the retail sector as consumer confidence and sales volumes rise.
Sustainability and Innovation as Key Drivers
Sustainability is becoming a critical focus for real estate investment in MENA. The region has made significant strides in adopting ESG (Environmental, Social, and Governance) principles, integrating green building practices, renewable energy projects, and sustainable urban planning. These efforts align with global priorities and attract environmentally conscious investors.
Expert Insights on MENA’s Real Estate Potential
Paul Tostevin, Head of Savills World Research, highlights the market’s recovery, stating: “The cyclical factors weighing on property values and investment activity are beginning to recede, and the nascent recovery in real estate capital markets should gather momentum in 2025.”
Richard Paul, Head of Professional Services and Consultancy, Middle East, adds: “The MENA region continues to demonstrate exceptional resilience and adaptability. By leveraging its geographic position, ambitious infrastructure projects, and forward-thinking policies, it is poised to become a top destination for real estate investment in 2025 and beyond. Investors are particularly drawn to the region’s emphasis on sustainability and innovation, which are increasingly critical for long-term growth.”
The MENA region’s strategic investments and policies position it as a leader in the global real estate market, attracting investors with its resilience, innovation, and commitment to sustainability.
