The value of GCC real estate is likely to reach $4.43 trillion this year and show a compound annual growth rate (CAGR) of 2.65% through 2028 to achieve a market volume of $5 trillion, according to Select Property, a leading UK-based property developer.  

 

Moreover, the GCC’s residential real estate value is on pace to grow at a CAGR of 2.85% to hit $3.43 trillion, stated Select Group, an investment partner with over 18 years of experience in Dubai, said 

 

With the region appearing to have sidestepped any negative ramifications of a global recession, investors are leveraging this economic strength by seeking global investment opportunities to diversify their income, it added.

 

According to Select, the rental prices in the UK are projected to grow by 15.9% between now and 2027, thanks to several key factors including increased investment interest from the GCC.

 

From June 2022 to June 2023, average rental prices throughout the UK increased by 5.1%. 

 

The rental demand in prime city centre locations like Manchester is at an all-time high with rental yields of up to 8% being achieved annually, stated the developer. 

 

This promising investment potential has contributed to a forecast of more than $3 billion from the Middle East being invested in the UK’s real estate sector in 2024, it added. 

 

"With its resilience during economic uncertainty in recent years, the UK has maintained its long-standing position as one of the world’s smartest choices for property investment," said Select Group CEO Adam Price.

 

The GCC, he stated, has played a key role in spurring this growth as intelligent investors have taken notice of the market’s increasing property prices and competitive rents to capitalise on both short- and long-term returns. 

 

"With the GCC’s strong economic performance holding steady, the UK’s real estate sector appears poised to remain a beneficiary for the foreseeable future," he added.-TradeArabia News Service