GCC REIT Industry Market Trends

Statistics for the 2023 & 2024 GCC REIT Industry market trends, created by Mordor Intelligence™ Industry Reports. GCC REIT Industry trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of GCC REIT Industry

This section covers the major market trends shaping the GCC REIT Market according to our research experts:

Growing Asset Allocation to Real Estate by Large Investors in The Region

Only 33% of the SWFs allocated 10% or more toward real estate. However, that is expected to change, with about 70% of the SWFs targeting a 10% or more allocation towards real estate in GCC. The reason is the real estate sector's ability to achieve steady cash flows through rental income and inherent ability to act as a hedge against inflation (due to contractual escalations in long-term contracts) besides healthy yields and the prospect of capital appreciation.

The property price correction in the United Arab Emirates has triggered many investors to explore alternate investment avenues to preserve and grow their wealth. Ironically, the current downturn in the real estate sector is also an opportune time to invest in a Real Estate Investment Trust (REIT).

Sovereign Wealth Funds' Current and Target Allocations to Real Estate by Proportion of Total AUM, GCC, 2020-2021

GCC REITs Average 1-Year Returns

REITs in the United Arab Emirates were offering healthy dividend yields compared to the global average. However, the story emerging in Saudi Arabia was a little different, with REITs offering an average dividend yield of 2.7%. Part of the issue in Saudi Arabia was that there was a sudden rush in listings with insufficient diligence done on the quality of assets. Early entrants to the market were able to obtain an initial premium on the listing. However, the long-term performance of a REIT is determined by the underlying quality of the real estate.

UAE has higher returns than most of the world's popular real estate investment sites as the rental income is tax-free due to tax exemption on capital gains.

Gulf Council REITs Average 1 Year Dividend Yield, 2021

GCC REIT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)