The GCC real estate sector recorded increased activity in the first half of 2025, with growth in sales, pricing and investment, according to a market outlook published by Kuwait Financial Centre (Markaz).
Kuwait
In Q1 2025, real estate sales rose 45% year‑on‑year, reaching KWD 896 million (approximately $2.6 billion). Growth occurred across residential (+38.5%), commercial (+22.9%) and investment segments (+49%). Transaction volume rose 20.9% overall; residential transactions were up 11.7%, commercial 163.6%, and investment 29.7%. Markaz projects real GDP growth of 1.9% in 2025, rebounding from a 2.8% contraction in 2024. The Real Estate Macro Index for Kuwait stands at 3.25 out of 5, indicating stable conditions with potential upside.
Saudi Arabia
The Kingdom’s real estate sector posted a 4.3% year‑on‑year increase in the real estate price index and a 37% rise in sales during Q1 2025. Residential prices rose 5.1%, commercial prices 2.5%. Despite a widening fiscal deficit, from 2.8 to 4.9% of GDP, the government plans to maintain its level of investment in economic diversification, projecting a continuation of momentum into H2 2025.
UAE
The UAE recorded transaction values of Dh239 billion (nearly $65 billion) in Q1 2025. Dubai accounted for Dh142 billion from 45,077 transactions, a 30% increase year-on-year. In 2024, Dubai posted Dh761 billion in real estate transactions (up 20%) and recorded 226,000 transactions, up 36%, attracting over 110,000 new investors (55% increase).
