Select Property, a well-known UK-based property developer projects that the value of GCC real estate would likely hit $4.43 trillion this year and expand at a compound annual growth rate (CAGR) of 2.65% through 2028 to reach a market volume of $5 trillion.
Moreover, Select Group, an investment partner with more than 18 years of expertise in Dubai, indicated that the GCC’s residential real estate value is expected to increase at a CAGR of 2.85% to reach $3.43 trillion.
Investors are taking advantage of this economic robustness by looking for international investment opportunities to diversify their income because the region seems to have avoided the worst effects of a worldwide recession, it continued.
Select projects that the UK’s rental costs will rise by 15.9% between now and 2027 as a result of a number of important variables, including a rise in GCC investment interest.
The UK’s average rental price climbed by 5.1% between June 2022 and June 2023.
The developer indicated that rental yields of up to 8% are obtained annually, and that demand for rentals in desirable city center areas such as Manchester is at an all-time high.
According to the report, more than $3 billion from the Middle East is expected to be invested in the UK’s real estate market by 2024 as a result of this encouraging investment potential.
“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.
He claimed that the GCC had been instrumental in promoting this expansion because astute investors have seen the market’s rising real estate values and appealing rental rates and have acted to profit from both short- and long-term gains.
“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.