An analysis conducted by Kamco Invest, according to official estimates, showed that the value of real estate deals during the year 2021 in the countries of the Gulf Cooperation Council rose by 52% to $ 137.4 billion, compared to the levels of the year 2020 of $ 90.5 billion, while in the year 2019 it amounted to regarding $ 96.5 billion.
The KAMCO report stated that Saudi Arabia contributed more than 41% of the total value of deals, while the UAE (Dubai and Abu Dhabi combined) added 33.4% to the total deals that took place in the region during 2021.
The number of deals in 2021 reached 663,323 compared to 570,080 in 2020.
KAMCO added that the increase in real estate transactions activities on an annual basis in 2021 is largely due to seizing distinctive buying opportunities, mortgage investors who were keen to obtain low rates for mortgage operations, and government initiatives to support housing and mortgages.
In addition, the average value of each real estate transaction increased in 2021 for markets such as Saudi Arabia by 29.7% and Dubai by 21.6%, which indicates investors’ appetite for properties characterized by their attractive prices.
In Dubai, the low supply and attractive prices have contributed to an increase in investors’ appetite for the off-plan projects that developers are offering, following the slow pace witnessed in the year 2020, as the value of deals for the projects under construction exceeded 45 billion dirhams in 2021.
For the year 2022, KAMCO said that addressing the increase in the capitalization rate of Gulf real estate once morest the backdrop of the expected interest rate hike, will be accurate, across sub-sectors, and according to the type of property.
