Real Estate - Industry - MEA Market, Share and Trends 2023-2028

Summary of Real Estate

The Middle East and Africa (MEA) region has seen significant growth in real estate investment activity over the past decade, driven primarily by economic diversification efforts across Gulf Cooperation Council (GCC) countries as well as infrastructure development needs. Top markets for investment include the UAE, Saudi Arabia, Egypt and South Africa.

Based on our estimates, we can say that the Middle-east and Africa’s regional real estate industry is forecasted to be a $617.73 billion industry in 2029 from $410.25 billion in 2023 with a CAGR of 7.02 %.

Key property sectors of focus include— logistics & industrial, driven by regional trade and e-commerce; office space, as knowledge economies expand; and residential including both for-sale and build-to-rent units. Hospitality assets also see strong flows to support tourism industry growth. Overall— the region offers relatively higher yields than more mature markets, attracting capital from global investors.

The pandemic accelerated mixed-use and suburban office campus development, as well as medical and senior housing, to meet evolving occupier demands around wellness, amenities and flexibility.

Geopolitical risks, economic volatility tied to commodity prices and lack of established public real estate sectors pose ongoing challenges however. The future outlook will depend on continued reforms, projects under initiatives like Saudi Vision 2030 and resolution of conflicts like the Qatar blockade.

Recent Trends and Insights

The rapid growth of e-commerce across the region has boosted demand for high-quality industrial and logistics facilities, a sector now receiving over 15% of total capital. Regional leaders like Egypt and Saudi Arabia have become logistics hubs.

Rising foreign investment into office and residential assets in the UAE, boosted by programs like Dubai’s 10-year golden visa, with many assets focused on attracting expatriate professionals and long-term tenants.

Infrastructure development drives real estate growth across Africa as governments partner with institutional investors on projects around transportation, energy, and urban development under initiatives like the New Cities Foundation in Egypt.

Sustainability prioritization is on the rise to support initiatives like the UAE and Saudi Arabia’s net zero carbon targets, with more funding into green building standards, renewable energy projects, and water conservation.

Product Insights

Core funds focused on stable assets like freehold offices, logistics facilities and residential in top cities. Examples include Equitativa’s KSA REIT and Actis’ Pan-African Property Income Fund.

Value-add/opportunistic strategies pursuing shorter hold higher return plays in sectors like hospitality, mixed-use developments and urban regeneration projects. Shariah-compliant real estate investment products structured to meet Islamic finance principles, a fast-growing segment across GCC and Muslim-majority markets.

Infrastructure funds financing projects linked to economic zones, transportation networks, utilities and other public works. Examples include Actis’ Africa Infrastructure Fund. Sector-specific funds targeting real estate sub-categories with specialized operating expertise, such as logistics, medical properties, student housing and senior living facilities.

Distressed debt offerings providing financing to real estate owners in temporary financial distress, secured against property collateral. The UAE – particularly Dubai and Abu Dhabi – are known to attract the most real estate investment in both value and deal volumes, led by stable regulations and its positioning as a regional business hub.

Key Companies

Some major players within this vast domain of industry are

• Emaar Properties
• Nakheel Properties
• Aldar Properties
• Majid Al Futtaim
• Eagle Hills
• Damac Properties
• Aldar Properties
• Meraas
• Al Futtaim Group Real Estate
• Al Habtoor Group

Regional Analysis

Outside the GCC—Egypt and Morocco are growing rapidly in popularity for real estate given their large populations and emerging market potential. South Africa remains southern Africa’s top destination.

Dubai remains a top global city for real estate investment. Abu Dhabi is growing as a business and tourism center. Both cities see strong flows into logistics, mixed-use and residential assets. Sustainability is a rising focus.

Vision 2030 is transforming the Kingdom with giga-projects around tourism, entertainment and smart cities boosting real estate. Riyadh and Jeddah lead with – retail, hospitality and offices in high demand.

Benefitting from a large domestic market, Egypt sees rising flows into Cairo and new developments like the New Administrative Capital. Logistics and affordable housing are priorities.

Johannesburg and Cape Town attract investment from global institutions into commercial and residential assets, supported by property rights protections. Casablanca is emerging as a hub for regional trade and tourism, driving real estate growth in offices, retail and coastal resort developments.

Market Segmentation

By Type:

• Residential
• Commercial
• Office
• Retail
• Industrial
• Other

By End User:

• Residential
• Office
• Retail
• Industrial
• Other

By Enterprise Size:

• Land
• Buildings

By Country:

• Saudi Arabia
• Iran
• United Arab Emirates
• Israel
• Egypt
• Iraq
• Qatar

Our Methodology

We have offered a well-founded review of the Middle-east and Africa’s  regional Real Estate Industry market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.