GCC Residential Real Estate Set to Reach $3.43 Trillion by 2028.

UK-based property developer, Select Property, forecasts that the GCC real estate market will reach $4.43 trillion this year, with a projected compound annual growth rate (CAGR) of 2.65% until 2028, ultimately reaching $5 trillion.

Furthermore, Select Group, an investment partner with over 18 years of experience in Dubai, suggests that the residential real estate value in the GCC is expected to rise at a CAGR of 2.85%, reaching $3.43 trillion. Investors are capitalizing on this economic strength by seeking international investment opportunities for income diversification, as the region seems to have mitigated the severe impacts of the global recession.

Select anticipates a 15.9% increase in UK rental costs by 2027 due to various factors, including heightened interest from GCC investors. The UK's average rental price already saw a 5.1% rise from June 2022 to June 2023. Select notes that rental yields of up to 8% are achievable annually, with significant demand for rentals in prime city center locations like Manchester.

The developer highlights that the UK's real estate market is poised to receive over $3 billion in investments from the Middle East by 2024, driven by this favorable investment climate. Adam Price, CEO of Select Group, attributes the UK's enduring appeal to its resilience during economic uncertainty, with the GCC playing a crucial role in promoting the market's growth. Investors recognize the increasing real estate values and attractive rental rates, positioning the UK as a smart choice for both short- and long-term gains.

"With the GCC’s robust economic performance, the UK’s real estate sector appears well-positioned to continue benefiting in the foreseeable future," Price concluded.