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MENA real estate activity likely to witness increase in 2025: Report

According to Savills, the turnover of real estate investments worldwide is expected to increase by 27% to USD 952 billion in 2025 and surpass USD 1 trillion by 2026

A recent Savills report predicts that real estate investment activity in the Middle East and North Africa (MENA) region will improve dramatically in 2025 and that capital values will recover strongly.

Due to the development of infrastructure, ambitious economic plans, and growing demand across a range of industries, researchers believe that the MENA region—which includes important markets like the United Arab Emirates (UAE), Saudi Arabia, and Egypt—is well-positioned to benefit from these encouraging trends.

The global survey of Savills’ 33 research heads reveals heightened optimism in all asset classes, especially in the MENA region, where governments implement bold policies and urban development initiatives to draw in foreign direct investment.

According to Savills, the turnover of real estate investments worldwide is expected to increase by 27% to USD 952 billion in 2025 and surpass USD 1 trillion by 2026.

Major cities like Dubai and Riyadh are expected to see a rise in leasing activity and rental growth, according to the researchers, who have identified the prime office market as a major driver of growth in MENA.

Due to its strategic location as a global centre for trade and tourism, the UAE continues to draw in foreign investors and companies.

Saudi Arabia’s “Vision 2030” economic diversification initiatives, which include transformative projects, are increasing demand for luxury residential developments and Grade-A offices, further solidifying the Kingdom’s standing as a major destination for real estate investment.

With 91% predicting rising levels of leasing activity and 81% expecting rental growth, the researchers are most upbeat about prime offices worldwide. Saudi Arabia, the UAE, India, the United Kingdom, and Spain are the countries with the highest projected rental growth in 2025.

The global real estate advisor claims that secondary offices are now likely to draw value-added and opportunistic investors since the repricing in these asset values has essentially reached its end.

In the Middle East, India, Japan, South Korea, Denmark, and Switzerland, Savills researchers predict modest increases in secondary office take-up and rents, despite the market’s continued challenges.

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