GCC Real Estate: Investor Interest Amid Market Changes

Summary:

Investor interest in GCC real estate remains strong despite market volatility, driven by structural changes such as population growth and economic diversification. In Dubai, real estate transactions grew by 20% in 2025, totaling over AED917 billion, although they recently dropped by 50% due to geopolitical tensions. Prices have softened by 9% since February but annual growth is still positive at 2.5%. Arqaam Capital forecasts continued normalization of prices and rents over the next two years as over 300,000 new homes are introduced. The UAE's favorable tax environment and deepening debt markets further enhance investment appeal.