Middle East Real Estate 2023 Outlook

The CBRE Middle East Real Estate Market Outlook 2023 predicts that the economies of GCC countries will continue to grow in 2023, with both the hydrocarbon and non-hydrocarbon sectors making significant contributions. The total value of real estate projects planned or underway in the GCC currently stands at $1.36 trillion, with Saudi Arabia accounting for the majority of this total. In terms of the real estate market, rental rates for offices are expected to continue to grow in Saudi Arabia and the UAE due to strong economic growth, while residential markets may experience fragmented performance due to supply gluts in some markets and lack of supply in key business hubs. Hotels are expected to improve with the lifting of pandemic-related restrictions, and KPIs are forecast to surpass 2019 levels by the end of 2023. Inflation is forecast to ease to 2.4%, and employment levels are expected to remain robust.