73% Of Savills Researchers Anticipate Increased Real Estate Investment Activity In MENA By 2025
Nearly three-quarters of Savills researchers from around the globe expect real estate investment activity to improve significantly by 2025, with a strong recovery in capital values also anticipated. The Middle East and North Africa (MENA) region, including key markets such as the UAE, Saudi Arabia, and Egypt, is primed to capitalise on these positive trends, driven by infrastructure development, visionary economic plans, and rising demand across various sectors.
Savills has projected global real estate investment turnover to grow by 27% to $952 billion in 2025 and surpass $1 trillion by 2026. Insights from the survey of Savills 33 heads of research highlight increased optimism across all asset classes, particularly in the MENA region, where governments are pursuing ambitious urban development projects and policies to attract foreign direct investment.
Savills researchers have identified the prime office market as a significant driver of growth in MENA, with increased leasing activity and rental growth expected in major cities such as Dubai and Riyadh. The UAE continues to benefit from its strategic position as a global hub for trade and tourism, attracting international businesses and investors. Saudi Arabia’s Vision 2030 initiatives, including transformative projects are boosting demand for Grade-A offices and luxury residential developments, further cementing the Kingdom’s position as a key real estate investment destination.
The industrial and logistics sector is also expected to attract significant interest, supported by the region’s expanding e-commerce market and its strategic role in global trade routes. State-of-the-art logistics facilities and distribution hubs in markets such as Dubai and Jeddah are positioned to benefit from this trend. Similarly, Egypt’s government-led urban expansion strategy, including the development of the New Administrative Capital, is driving growth in residential and entertainment-driven retail sectors, enhancing the country’s appeal to international investors.
Improved performance in the retail sector is also anticipated, as consumer confidence grows, and retail sales volumes increase across the region. The focus on mixed-use developments and high-quality shopping destinations reflects the region’s commitment to enhancing the retail experience while accommodating evolving consumer preferences.
Paul Tostevin, Head of Savills World Research, comments,“The tide is turning. As economic factors stabilise, we expect the MENA region to be at the forefront of global real estate growth, driven by visionary leadership and resilient economic strategies. Markets such as the UAE, Saudi Arabia, and Egypt are particularly well-positioned to attract significant investment as they align with global trends in sustainability and innovation.”
Richard Paul, Head of Professional Services & Consultancy, Middle East, Savills,adds,“The MENA region continues to demonstrate exceptional resilience and adaptability in the face of global economic shifts. By leveraging its strategic geographic position, ambitious infrastructure projects, and forward-thinking policies, the region is poised to become a top destination for real estate investment in 2025 and beyond. Investors are particularly drawn to the region’s emphasis on agility and innovation, which are increasingly critical factors in driving long-term growth.”
Sustainability remains a critical focus for real estate investment in the region and around the world
. Savills researchers have emphasised the growing importance of ESG (Environmental, Social, and Governance) considerations in shaping investor strategies. MENA markets have made significant progress in adopting green building practices, renewable energy projects, and sustainable urban planning, aligning with global priorities and the increasing demand for environmentally conscious investments.
For more insights or to request the full report, please visit here.
