Market research & Development
Executive Summary
The Gulf Cooperation Council (GCC) region, encompassing Saudi Arabia, the United Arab Emirates (UAE), Qatar, Oman, Bahrain, and Kuwait, stands as a global epicenter for residential property investment and wealth migration in 2025. Propelled by economic diversification, progressive government reforms, and a surge in high-net-worth individual (HNWI) relocations, the GCC’s property market is experiencing robust demand, capital appreciation, and rental yield growth. This comprehensive report explores the economic drivers, market trends, wealth migration patterns, infrastructure developments, and investment opportunities shaping the GCC’s residential property landscape. Designed for investors, developers, and stakeholders, Omnia’s proprietary analysis offers actionable insights to navigate this dynamic market, positioning the GCC as a premier destination for property wealth creation.
Economic and Policy Landscape
Regional Economic Growth
The GCC economies are undergoing a transformative phase, driven by ambitious diversification strategies to reduce reliance on oil revenues. In 2024, the region’s combined GDP grew by an estimated 4.2%, with non-oil sectors contributing 52% to the total GDP, as reported by the International Monetary Fund (IMF). The non-oil economy, encompassing real estate, tourism, technology, and financial services, reflects the success of long-term visions such as Saudi Arabia’s Vision 2030, the UAE’s Vision 2021, and Oman’s Vision 2040.
Country-Specific Economic Performance
Saudi Arabia
The Kingdom’s non-oil GDP grew by 5.1% in 2024, with the real estate and construction sectors expanding by 7.8% year-on-year (y-o-y), according to the General Authority for Statistics (GASTAT). Mega-projects like NEOM, Qiddiya, and Red Sea Global have catalyzed economic activity, while regulatory reforms, including 100% foreign ownership in select sectors, have bolstered investor confidence.
UAE
Abu Dhabi and Dubai recorded non-oil GDP growth of 6.6% and 5.4%, respectively, driven by tourism, financial services, and technology, per the Statistics Centre - Abu Dhabi (SCAD). The UAE’s tax-free environment and golden visa program continue to attract global investors and HNWIs.
Qatar
Following the 2022 FIFA World Cup, Qatar’s economy grew by 3.9% in 2024, with real estate demand rising due to infrastructure repurposing and LNG expansion projects, according to the Qatar Central Bank.
Oman
Vision 2040 reforms led to a 4.5% non-oil GDP growth, with logistics, tourism, and real estate driving activity in Muscat and Salalah, as noted by the National Centre for Statistics and Information (NCSI).
Bahrain
A 3.7% GDP growth was supported by financial services and industrial projects, positioning Manama as a cost-effective investment hub, per the Bahrain Economic Development Board.
Kuwait
Despite a slower 2.8% growth, Kuwait’s real estate market is gaining momentum through public-private partnership (PPP) projects under the New Kuwait 2035 plan, according to the Kuwait Central Statistical Bureau.
Policy Reforms Driving Investment
Ease of Doing Business
The UAE and Saudi Arabia rank among the top 50 globally for ease of doing business, with streamlined property registration processes and transparent legal frameworks, as highlighted in the World Bank’s Doing Business Report. These reforms have simplified investment processes, making the region more accessible to international investors.
Tax Incentives
The absence of personal income tax across the GCC, combined with low corporate tax rates (e.g., 9% in the UAE for select entities), creates a favorable investment climate, per the UAE Federal Tax Authority. This tax egregiously enhances the region’s appeal for wealth preservation and capital growth.
Visa and Residency Programs
Long-term residency initiatives, such as Saudi Arabia’s Premium Residency, the UAE’s golden visa, and Qatar’s real estate-linked residency, are driving wealth migration and property demand, as outlined by the Saudi Premium Residency Center. These programs offer stability and long-term benefits for investors and their families.
Foreign Ownership Laws
Saudi Arabia and the UAE have relaxed restrictions, allowing 100% foreign ownership in designated free zones and select mainland areas, while Oman and Qatar offer similar incentives in specific projects, per the Oman Investment Authority. These reforms have opened new avenues for international property investment.
Wealth Migration and HNWI Trends
Surge in HNWI Relocations
The GCC is a global magnet for wealth, with an estimated 15,000 HNWIs relocating to the region in 2024, a 20% y-o-y increase, according to the Henley & Partners Global Wealth Migration Review. This trend is expected to accelerate in 2025, with projections of 18,000 HNWI inflows, driven by the region’s geopolitical stability, tax advantages, and lifestyle offerings.
Primary Destinations for HNWIs
Dubai and Abu Dhabi
These emirates account for 60% of HNWI relocations, driven by luxury property markets, world-class infrastructure, and vibrant cultural scenes. Dubai’s Palm Jumeirah and Abu Dhabi’s Saadiyat Island are particularly sought-after for their exclusivity and lifestyle offerings.
Riyadh
The Saudi capital is emerging as a new hub, with a 35% y-o-y increase in HNWI relocations in 2024, fueled by Vision 2030 projects and a growing financial sector.
Doha
Qatar’s capital attracts energy sector professionals and HNWIs, with The Pearl and West Bay as prime investment zones.
Muscat and Manama
These cities are gaining traction among cost-conscious HNWIs seeking high yields and affordable luxury.
Source Markets for Wealth Migration
The top source countries for HNWI relocations include India, the UK, Russia, China, and Lebanon. The GCC’s neutral foreign policy and absence of geopolitical conflicts make it a safe haven for wealth preservation, particularly amid global uncertainties, as noted in the UBS Global Wealth Report.
Investment Preferences of HNWIs
HNWIs prioritize luxury residential properties, with a strong preference for branded residences, waterfront villas, and penthouses. In 2024, Dubai’s Palm Jumeirah and Abu Dhabi’s Saadiyat Island recorded 25% y-o-y price growth for premium properties, while Riyadh’s King Abdullah Financial District (KAFD) saw a 20% increase. Family offices, numbering over 500 across the GCC (40% in the UAE), are increasingly investing in mixed-use developments, sustainable projects, and commercial real estate to diversify portfolios, per the Knight Frank Wealth Report.
Drivers of Wealth Migration
Lifestyle and Safety
The GCC offers world-class infrastructure, low crime rates, and a cosmopolitan environment, appealing to global elites.
Tax Advantages
Zero personal income tax and favorable capital gains policies contrast with rising tax burdens in Western markets, as emphasized by the OECD Tax Policy Reviews.
Global Connectivity
Strategic geographic positioning and aviation hubs like Dubai International Airport, Hamad International Airport, and King Khalid International Airport facilitate business and leisure travel, per the International Air Transport Association (IATA).
Education and Healthcare
Investments in international schools, universities, and advanced healthcare facilities enhance the region’s appeal for families, according to the UNESCO Institute for Statistics.
Residential Property Market Dynamics
Saudi Arabia
Market Overview
Saudi Arabia’s residential property market is booming, driven by Vision 2030 mega-projects and a growing expatriate population. Riyadh and Jeddah are the primary investment hubs, with emerging cities like Dammam and Al Khobar gaining traction.
Demand Drivers
NEOM, Qiddiya, and Red Sea Global are creating housing needs for project workforces, while expatriate professionals in finance and technology fuel demand for luxury and mid-tier properties, as noted by the Saudi Real Estate Institute.
Price Trends
Riyadh’s luxury segment saw a 15% y-o-y price increase in 2024, with average villa prices reaching SAR 5,500 per sqm. Jeddah’s mid-tier apartments grew by 8%, averaging SAR 3,800 per sqm.
Supply Pipeline
Over 300,000 residential units are planned for delivery by 2027, with 40% in Riyadh. Notable projects include Roshn’s Al Arous and Sedra developments, targeting mid-to-high-income buyers, per the Roshn Group.
Rental Growth
Rental yields in Riyadh and Jeddah range from 6-8%, driven by limited supply and expatriate demand.
United Arab Emirates
Market Overview
The UAE’s residential market is the most mature in the GCC, with Dubai and Abu Dhabi leading in transaction volumes and capital appreciation.
Demand Drivers
Dubai’s off-plan market and Abu Dhabi’s cultural hubs (e.g., Saadiyat Island, Yas Island) attract investors and end-users. The BFSI, technology, and creative sectors drive corporate relocations, according to the Dubai Land Department.
Price Trends
Dubai’s prime residential prices rose 18% y-o-y, with Downtown and Dubai Marina averaging AED 25,000 per sqm. Abu Dhabi’s Al Reem Island and Saadiyat Island saw a 12% price hike, averaging AED 18,000 per sqm.
Supply Pipeline
Dubai expects 120,000 new units by 2027, while Abu Dhabi’s pipeline includes 50,000 units, with Masdar City and Yas Island as key growth areas, per the Abu Dhabi Department of Municipalities and Transport.
Rental Growth
Dubai’s rental yields range from 5-7%, with Abu Dhabi at 6-8%. Grade A properties in Abu Dhabi Global Market (ADGM) report 97% occupancy.
Qatar
Market Overview
Doha’s residential market is characterized by steady demand from energy sector professionals and HNWIs, with West Bay and The Pearl as premium zones.
Demand Drivers
Infrastructure repurposing from the 2022 World Cup and LNG expansion projects are driving housing needs. Lusail City is emerging as a growth hub, as highlighted by the Qatar General Secretariat for Development Planning.
Price Trends
Capital values in The Pearl grew by 10% y-o-y, with villas averaging QAR 12,000 per sqm. Lusail City’s mid-tier segment rose by 7%, averaging QAR 8,500 per sqm.
Supply Pipeline
Approximately 20,000 units are slated for completion by 2026, with Lusail City accounting for 50%.
Rental Growth
Yields average 5.5-7%, with strong demand for serviced apartments and luxury villas.
Oman
Market Overview
Oman’s residential market is gaining momentum, driven by tourism and logistics growth in Muscat and Salalah.
Demand Drivers
Waterfront projects like Al Mouj Muscat and government incentives for foreign ownership are attracting regional investors, per the Oman Ministry of Housing and Urban Planning.
Price Trends
Muscat’s premium properties rose 8% y-o-y, averaging OMR 900 per sqm. Mid-tier apartments saw 5% growth, averaging OMR 600 per sqm.
Supply Pipeline
15,000 units are planned by 2027, with Al Mouj Muscat and Muscat Bay as flagship projects.
Rental Growth
Yields range from 5-6%, driven by expatriate demand and tourism-related leasing.
Bahrain
Market Overview
Bahrain offers a cost-effective alternative to Dubai, with Manama’s financial district and Bahrain Bay as key investment zones.
Demand Drivers
Demand comes from financial sector professionals and regional investors seeking affordability and high yields, as noted by the Bahrain Real Estate Regulatory Authority.
Price Trends
Capital values grew 7% y-o-y, with prime apartments averaging BHD 800 per sqm.
Supply Pipeline
10,000 units are expected by 2026, with Dilmunia Island and Bahrain Bay as key developments.
Rental Growth
Yields of 6-7% reflect strong demand from expatriates and short-term tenants.
Kuwait
Market Overview
Kuwait’s residential market is driven by public sector employees and infrastructure projects, with Kuwait City as the primary hub.
Demand Drivers
Projects like Sabah Al Ahmad Sea City and the Mubarak Al Kabeer Port are spurring coastal development and housing demand, per the Kuwait Public Authority for Housing Welfare.
Price Trends
Prices rose 6% y-o-y, with villas averaging KWD 1,200 per sqm and apartments at KWD 800 per sqm.
Supply Pipeline
8,000 units are planned by 2026, focusing on mid-tier housing for young professionals.
Rental Growth
Yields average 5-6%, with stable demand from local and expatriate tenants.
Infrastructure and Urban Development
Mega-Projects Shaping the GCC
Infrastructure investments are transforming the GCC’s property landscape, enhancing connectivity, livability, and investment appeal. In Saudi Arabia, the USD 500 billion NEOM project, Riyadh Metro (set for 2025 completion), and Red Sea Global are boosting property values in adjacent areas, per the NEOM Official Website. In the UAE, Abu Dhabi’s Etihad Rail, Dubai’s Al Maktoum International Airport expansion, and the Hyperloop project are driving logistics and residential demand, according to the Etihad Rail. Qatar’s Doha Metro expansions, Hamad Port upgrades, and Lusail City’s smart infrastructure support urban growth, as noted by the Qatar Rail. Oman’s Duqm Port, Muscat International Airport enhancements, and the Oman Rail project are catalyzing property development, per the Oman Ministry of Transport. Bahrain’s King Fahd Causeway expansion and Bahrain Metro (Phase 1 by 2026) enhance accessibility to Manama and surrounding areas, according to the Bahrain Ministry of Transportation. Kuwait’s Mubarak Al Kabeer Port and Sheikh Jaber Causeway are spurring coastal residential and commercial development, per the Kuwait Ministry of Public Works.
Smart Cities and Sustainability
The GCC is at the forefront of sustainable urban planning, with smart cities integrating green technologies and digital infrastructure. Masdar City in the UAE is a net-zero carbon city with residential and commercial developments, attracting eco-conscious investors, per the Masdar Official Website. NEOM in Saudi Arabia is a futuristic city with autonomous transport and renewable energy, driving demand for innovative housing solutions. Lusail City in Qatar is a smart city with sustainable residential towers and waterfront villas, appealing to HNWIs, according to the Lusail Real Estate Development Company. Duqm in Oman is an emerging industrial and residential hub with green logistics infrastructure, per the Duqm Special Economic Zone.
Connectivity and Logistics
The GCC’s strategic location and world-class logistics infrastructure enhance its appeal for property investment. Aviation hubs like Dubai International Airport (handling 90 million passengers in 2024), Hamad International Airport, and King Khalid International Airport ensure global connectivity, per the International Air Transport Association (IATA). Port expansions, such as Jebel Ali (UAE), Hamad Port (Qatar), and Duqm Port (Oman), support trade and logistics-driven residential demand.
Emerging Trends and Investment Opportunities
Branded Residences
Branded residences, such as those in Dubai’s Address Residences and Abu Dhabi’s Nobu Residences, are in high demand. These properties offer 10-15% higher capital appreciation than non-branded counterparts, appealing to HNWIs seeking prestige and lifestyle, as noted in the Global Branded Residences Report.
Sustainable Developments
Environmental, social, and governance (ESG)-compliant projects are gaining traction. Masdar City, The Sustainable City in Dubai, and NEOM’s The Line prioritize energy efficiency and green living, attracting eco-conscious investors and yielding 8-10% returns, per the World Green Building Council.
Affordable Housing
Saudi Arabia and Oman are prioritizing mid-tier housing to cater to young professionals and expatriates. Projects like Roshn’s Sedra in Riyadh and Al Mouj Muscat offer affordable villas and apartments with 6-8% rental yields, appealing to value-driven investors, according to the Saudi Housing Program.
Co-Living and Short-Term Rentals
Co-living spaces and Airbnb-style rentals are growing in Dubai, Doha, and Muscat, driven by millennials, digital nomads, and tourism. These properties offer 7-9% yields, with flexible leasing models enhancing profitability, per the Airbnb Economic Impact Report.
PropTech and Digital Innovation
The GCC is embracing PropTech, with digital platforms for property transactions, virtual tours, and blockchain-based ownership records. The UAE leads adoption, with platforms reporting a 30% y-o-y increase in online transactions in 2024, according to the PropTech Middle East.
Fractional Ownership
Fractional ownership models are emerging, allowing investors to co-own luxury properties in Dubai and Abu Dhabi. These models lower entry barriers and offer 5-7% annualized returns, appealing to mid-tier investors, per the International Real Estate Federation (FIABCI).
Risks and Challenges
Oversupply Risks
Dubai and Riyadh face potential oversupply in mid-tier segments, with 120,000 and 300,000 units planned by 2027, respectively. This could moderate price growth in select submarkets, particularly for off-plan properties, as cautioned by the Middle East Economic Survey (MEES).
Geopolitical Uncertainty
While the GCC maintains neutrality, regional tensions in the Middle East pose indirect risks to investor sentiment. Diversified investment strategies can mitigate exposure, per the World Economic Forum.
Regulatory Variations
Foreign ownership laws vary across the GCC, with Saudi Arabia and the UAE offering the most flexibility. Investors must navigate differing regulations in Qatar, Oman, Bahrain, and Kuwait to optimize returns, according to the GCC Board of Directors Institute.
Interest Rate Sensitivity
Rising global interest rates may impact affordability, particularly in Bahrain and Kuwait, where mortgage financing is more prevalent. Investors should focus on cash-flow-positive properties to hedge against rate hikes, per the International Finance Corporation (IFC).
Sustainability Compliance
Increasing ESG requirements may raise development costs for non-compliant projects, particularly in Saudi Arabia and the UAE. Investors should prioritize green-certified properties to future-proof portfolios, as recommended by the United Nations Environment Programme (UNEP).
Outlook for 2025
Projected Market Trends
The GCC residential property market is poised for sustained growth in 2025. An estimated 18,000 HNWIs will relocate to the GCC, with Dubai, Abu Dhabi, and Riyadh as top destinations. Prime residential prices are expected to rise 10-15% in Dubai, Abu Dhabi, and Riyadh, with 5-8% growth in Qatar, Oman, and Bahrain. Rental yields will remain attractive, ranging from 5-8%, with Abu Dhabi and Riyadh offering the highest returns (6-8%). Continued reforms, such as Saudi Arabia’s real estate financing initiatives and the UAE’s visa extensions, will bolster investor confidence, per the Saudi Central Bank. Mega-projects and smart city developments will enhance long-term property value growth.
Investment Recommendations
Prime Markets
Focus on luxury properties in Dubai (Palm Jumeirah, Downtown), Abu Dhabi (Saadiyat Island, Yas Island), and Riyadh (KAFD) for maximum capital appreciation.
Emerging Markets
Explore mid-tier opportunities in Muscat, Manama, and Doha’s Lusail City for high yields and affordability.
Sustainable Investments
Prioritize ESG-compliant projects like Masdar City and NEOM for long-term value and regulatory compliance.
Diversification
Balance portfolios with branded residences, affordable housing, and short-term rental properties to mitigate risks.
Looking forward
The GCC’s residential property market in 2025 offers unparalleled opportunities for wealth creation, driven by economic diversification, wealth migration, and transformative infrastructure. Saudi Arabia and the UAE remain the region’s investment powerhouses, while Qatar, Oman, Bahrain, and Kuwait provide niche opportunities for value-driven investors. By leveraging local expertise, embracing PropTech, and aligning with sustainability trends, investors can capitalize on the GCC’s dynamic property landscape. Omnia recommends a strategic, diversified approach, focusing on prime and emerging markets to maximize returns and build resilient portfolios.
