Gulf's Planned and Underway Real Estate Ventures Rise to $1.7 Trillion | Kanebridge News
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Gulf’s Planned and Underway Real Estate Ventures Rise to $1.7 Trillion

Continued Expansion Anticipated for Middle East Property Market in 2024, CBRE Predicts.

Thu, Mar 7, 2024 1:27pmGrey Clock 3 min

According to a CBRE analysis, the Gulf region’s planned and ongoing real estate projects experienced a significant surge in valuation last year. The combined value of these developments, either in the planning phase or under construction, has reached an impressive $1.68 trillion, CBRE reports.

The real estate market in the Middle East is prepared for continued growth into 2024, driven by robust economic expansion, rising demand, and a constrained supply, as per the CBRE 2024 Middle East Real Estate Market Outlook.

Taimur Khan, Head of Research – MENA at CBRE

 

Middle East Property Sector’s Dynamics

Economic growth within the GCC countries presented a mixed picture in 2023, with an average growth rate of merely 0.6 percent, a sharp decline from the 6 percent seen in 2022. This slowdown was largely attributed to a deceleration or contraction in several GCC countries’ oil GDP growth rates, averaging a drop of 3.1 percent. However, this contrasted with an average increase of 3.1 percent in their non-oil GDP growth rates.

Expectations for 2024 indicate a rebound in GDP growth across the GCC, with projections of 2.9 percent overall growth. While oil GDP is forecasted to rise by 2.2 percent, non-oil sectors are anticipated to experience a more robust growth rate of 2.9 percent during the same period. Despite global and national economic challenges, especially in oil-related areas, the non-oil sectors, especially real estate, remain vibrant across the GCC.

By 2024, the total value of real estate projects either planned or currently under construction in the region is estimated at $1.68 trillion, up from $1.38 trillion the previous year. Saudi Arabia represents a significant portion of this value, accounting for 63.1 percent or approximately $1.06 trillion, followed by the UAE with $409 billion, making up 24.4 percent of the total. Bahrain, Kuwait, Oman, and Qatar contribute smaller shares to the overall total.

The heightened investment levels underscore the GCC countries’ commitment to diversifying their economies through the development of the built environment, according to Taimur Khan, Head of Research – MENA at CBRE.

Khan emphasizes the positive economic outlook for the region, underlined by stronger growth and investment inflows, which are expected to support robust demand and performance in the real estate sector.

The GCC’s residential market saw uniformly positive price performance throughout 2023, and this trend is likely to persist with continued split in growth rates. The office real estate sector is anticipated to maintain its strong performance from 2023 into 2024, although challenges such as global economic uncertainties and limited supply in key markets may affect activity levels.

Sector-Specific Insights

Office Real Estate: In 2023, Bahrain witnessed stable rental rates for Prime and Grade A office spaces, accompanied by an uptick in occupancy and a restrained addition of new supply. The coming year is projected to see a modest decline in rental prices as the supply slightly expands. Resident interest and market performance are expected to remain robust in Saudi Arabia and the UAE.

Residential Real Estate: The residential sector across the GCC enjoyed uniformly strong price increases in 2023, with a forecast of continued but varied growth in 2024. Notably, the UAE distinguished itself with significant growth in both pricing and transaction volumes.

Hotel Sector Real Estate: Visitor numbers across the GCC saw an upward trend in 2023, a pattern anticipated to persist into 2024, though distribution will vary by country. The high-end beachfront segments in Abu Dhabi and Dubai are poised for exceptional performance, primarily due to the scarcity of new supply.

Retail Real Estate Sector: Bahrain experienced a mixed retail market performance in 2023, with expectations of an ongoing occupier-friendly environment in 2024 driven by an increase in supply. In the UAE, the pressing issues are robust demand coupled with a lack of premium stock.

-Industrial and Logistics Real Estate Sector: The sector continued to see demand surpassing supply in strategic GCC areas, with the addition of new supply in 2024 unlikely to lower rental rates. The rate of rent increase is expected to see a slight decrease.



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Tonino Lamborghini Unveils New Luxury Residences in Ras Al Khaimah

Tonino Lamborghini recently revealed a new luxury project comprising 241 units in Ras Al Khaimah, developed in partnership with Arista Developments.

Tue, May 21, 2024 2 min

Named the Tonino Lamborghini Residences, this project promises a fresh take on luxury living with its iconic design, cutting-edge amenities, and stunning sea views.

Set on Al Marjan Island, the development is adding 241 high-end units to the area’s real estate offerings, all reflecting the sleek, Italian elegance associated with the Lamborghini name.

These residences are designed to impress, featuring modern architecture that harmonizes with the scenic surroundings and interiors marked by meticulous craftsmanship and top-quality finishes.

Living in this one of the project’s units means access to a range of upscale amenities: a state-of-the-art fitness center, multiple swimming pools, beautifully landscaped gardens, and dedicated areas for children’s play. The complex also offers a business center with a conference room, an outdoor BBQ area, and a chic café, catering to all aspects of high-end living.

Arch. Abdulla Al Abdouli, Chief Executive Officer, Marjan, expressed excitement about the introduction of Tonino Lamborghini Residences to Al Marjan Island, noting the project’s blend of sustainable construction and smart home technologies. This integration, he mentioned, guarantees a luxurious lifestyle equipped with the finest modern amenities, reflecting the exquisite Italian craftsmanship. He is confident that this new venture with Arista Developments will significantly boost the allure of Al Marjan Island as a top lifestyle destination in Ras Al Khaimah for both investors and residents.

Tonino Lamborghini, President of the Tonino Lamborghini brand, said: “We are delighted to be among the pioneers in this remarkable new destination in one of the seven emirates of the UAE. Our heartfelt gratitude and recognition go to H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, for his visionary leadership and foresight, and for embracing innovative strategies to revitalize a region full of potential.”

Mr. Arthur Chu, Chairman of Arista Developments, highlighted the project’s ambition to capture the essence of the Tonino Lamborghini brand in every aspect of its design. He described the development of a prestigious residential tower on Al Marjan Island that will reflect the lifestyle and beauty synonymous with Lamborghini. From the sharp, well-defined lines of the exterior to the elegantly designed interior common areas, every detail is crafted to showcase the brand’s distinctive elegance and sophistication. Chu emphasized that the interior designs, personally crafted by Tonino Lamborghini, aim to fully immerse residents in the Italian brand’s luxurious identity.

The variety in housing options is vast, ranging from one and two-bedroom apartments to duplexes, sea view villas, signature villas, and exclusive penthouses.

The collaboration between Tonino Lamborghini and Arista Developments blends iconic Italian style with expert real estate craftsmanship. This venture marks Lamborghini’s first introduction to Ras Al Khaimah and represents a commitment to setting new standards in luxury and modern living.

 

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