Jordanian IT firms embrace AI at 63% including technology: study

Jordanian IT firms embrace AI at 63% including technology: study

RIYADH: According to a report, the Gulf real estate sector will witness growth in the first half of 2024, driven by increased demand and government policy support.

The Kuwait Financial Center, also known as Markaz, recently published a series of studies on the real estate markets in Kuwait, Saudi Arabia and the United Arab Emirates.

The findings show that the GCC real estate sector is poised for sustained and accelerated growth, driven by stable oil prices, increased demand for real estate, robust economic growth and supportive government policies. to the government.

As part of its commitment to provide investors with the latest and most reliable market insights, the analysis delved into the performance of the real estate sector in the second half of 2023 and provides a detailed outlook for the first half of 2024.

Markaz real estate macro index scores for Kuwait, United Arab Emirates and Saudi Arabia in the first quarter of 2024 are 2.9, 3.8 and 3.55 respectively. This compares to results in the second quarter of 2023, which were 2.8, 3.8 and 3.55 for the same countries.

The reports analyze key macroeconomic indicators, such as gross domestic product growth, fiscal position, investment, inflation and population growth.

The Saudi Arabia Real Estate Report predicts improved economic growth in the Kingdom for 2024, driven by strong performances in both the oil and non-oil sectors.

Markaz said the improvement “is mainly expected to be driven by Saudi Arabia’s strong performances across the oil and non-oil sectors, with real GDP growth expected to improve by 4 percent year-on-year.”

Despite the decline in real estate transactions, the report highlights positive indicators such as rising land prices and continued demand in the office sector.

Saudi Arabia’s economic performance is expected to improve, driven by stronger oil demand, moderate inflation and low unemployment.

The contribution of non-oil activities and active government spending are expected to further accelerate growth, according to the firm.

The report further noted that the value of Saudi Arabian real estate transactions decreased by 11.3 percent year-on-year to September 2023, with a corresponding decline in volume of 7 percent.

Driven by a 1.2 percent rise in residential land costs, the Kingdom’s real estate price index rose 0.7 percent year-on-year in the third quarter of 2023. However, housing transactions continued to fall for due to higher mortgage interest rates and tight property prices.

The strong performance of the office sector during 2023 is expected to continue in 2024, mainly due to demand driven by multinational companies looking to establish their regional headquarters.

The analysis predicts an accelerated phase for the real estate sector in Saudi Arabia in the first half of 2024 based on its assessment of various macroeconomic factors in the Kingdom.

The sector’s favorable position is expected to be supported by sustained growth in non-oil activities, a robust hospitality sector and increased government spending on infrastructure projects, the report added.

Similarly, the Kuwait Real Estate Report predicts a stable market in the country for the first half of 2024, supported by forecasts of economic growth and stability of oil prices.

Despite some challenges, such as concerns about inflation and credit growth, the report expresses confidence in the stability of Kuwait’s real estate sector.

The UAE real estate report predicts steady economic growth to 2024, supported by various factors, including a higher oil GDP and investor-friendly policies.

The study expects continued expansion in key real estate segments despite potential challenges such as the effects of inflation and interest rates.

Founded in 1974, Markaz is an asset management and investment banking institution in the Middle East and North Africa region. With a history of innovation, Markaz has introduced various investment channels, contributing to the development of investors’ opportunities and horizons.

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