Savills, a global real estate advisory firm, forecasts a 27% increase in global real estate investment turnover, reaching $952 billion in 2025, with expectations to surpass $1 trillion by 2026.
A survey of Savills’ 33 heads of research indicates that nearly 73% anticipate improved investment activity and capital values across all sectors in 2025.
The Middle East and North Africa (MENA) region, including key markets such as the UAE, Saudi Arabia, and Egypt, is expected to benefit from these trends. This optimism is attributed to infrastructure development, visionary economic plans, and rising demand across various sectors.
The prime office market is a significant growth driver in MENA, with increased leasing activity and rental growth expected in major cities like Dubai and Riyadh. Savills researchers are most optimistic about prime offices globally, with 81% anticipating rental growth and 91% forecasting rising levels of leasing activity. Rental growth expectations for 2025 are strongest in Saudi Arabia, the UAE, India, the UK, and Spain.
The industrial and logistics sector is also expected to attract significant interest, supported by the region’s expanding e-commerce market and its strategic role in global trade routes. According to the survey, state-of-the-art logistics facilities and distribution hubs in markets such as Dubai and Jeddah can benefit from this trend.
Improved performance in the retail sector is anticipated as consumer confidence grows and retail sales volumes increase across the region. The focus on mixed-use developments and high-quality shopping destinations reflects the region’s commitment to enhancing the retail experience while accommodating evolving consumer preferences.
MENA markets have made significant progress in adopting green building practices, renewable energy projects, and sustainable urban planning, aligning with global priorities and the increasing demand for environmentally conscious investments.
