The United Arab Emirates market stands tall with real estate being at the forefront of economic diversification. The UAE government is planning to expand the economy to reduce its financial dependency on oil and gas revenue. Real estate activities bear 5.5% of the UAE’s overall gross domestic product that side of the world.
UAE is gradually progressing towards a more highly diversified economy that is increasingly dependent on hydrocarbons. The role of the building, construction, and real estate sector is critical. This sector is the key driver of foreign and national investment, job creation, economic growth, and national competitiveness.
The Middle East real estate sector has been making waves recently for the following reasons. Here are a few of the most notable:
Rapid growth and development: Many cities in the Middle East, such as Dubai, Abu Dhabi, and Doha, have experienced rapid growth and development in recent years, with new infrastructure projects, skyscrapers, and other real estate developments popping up across the region.
Foreign investment: The Middle East has become an increasingly attractive destination for foreign investors, particularly those from Asia and Europe, who are looking for high returns on their investments. This has led to a surge in foreign investment in real estate projects across the region.
Rising property prices: Property prices in many Middle Eastern cities have been rising steadily in recent years, making real estate a potentially lucrative investment for those who can afford it.
Changing demographics: The Middle East has a young, growing population, which is driving demand for new housing and commercial developments.
Political instability: Political instability and conflict in some parts of the Middle East have had a significant impact on the real estate sector, with some investors choosing to avoid certain markets due to the perceived risks involved.
The Middle East real estate sector is a complex and dynamic market that is constantly evolving. Whether you’re an investor, a developer, or simply interested in the region, it’s an industry that is definitely worth keeping an eye on.
Real estate experts work with policymakers, developers, investors, contractors, stakeholders, and lenders across the supply chain to propel the business. They’ve combined valuable global insight with hands-on local experience to help address the challenges with the development of a large infrastructure that shapes the country for the long term or single asset projects curated to fetch maximum ROI. Qualified consultants and a keen focus on clients coupled with a commitment to excellence and a straight-down-the-line global mindset. They combine local expertise and consistent delivery and build trustworthy relationships that are at the core of their business and reputation.
The middle east market is segmented by residential estate (apartments, some types of residential estate, and villas) and commercial real estate (offices, retail, hospitality, and some types of commercial real estate).
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The Saudi real estate market is cross-filed with a compound annual growth rate of more than 9.74% from 2022 to 2027. Saudi economy was adversely affected in many ways due to COVID-19. This included low global oil prices and crude production, which depleted oil exports and government fiscal receipts.
How is the Saudi Arabian Real Estate Market Currently Trending?
Eyeing 2023, real estate is the center of focus for Saudi Arabian markets. Post Covid, residential mortgages have registered an annual increase of 48%, with a total of SAR 71.4 billion (19.3 billion USD) during the initial months of 2021. The residential market remains slightly active across various cities, and the average prices dropped in Quarter 1 2021 dropped to USD 1,33,000 since 2020. But the average selling prices of land and homes stabilized during the same period. This drop in prices was directly proportional to the provision of housing solutions to meet Saudi families’ desires in partnership with real estate developers across all cities and regions. According to the Word Bank, the Middle East and the North America (MENA) region will grow by 5.5% in 2022 and by 3.5 in 2023.
How Can the Real Estate Sector Improve in the Middle East?
The real estate sector in the middle east is divided into old and new markets, and it has opened up its door for investors globally. Both the buyers as well as the sellers can engage in direct business. There is plenty of help available if you are planning to invest in property in Dubai and adjoining areas. Many options are available online.
The real estate industry in the Middle East has seen a significant increase in the adoption of mobile apps in recent years. Mobile apps have become a popular tool for real estate agents and property developers to market their properties and offer convenient services to their clients. Here are some of the ways that mobile apps are being used in the Middle East’s real estate industry:
Property Search: Mobile apps are being used to search for properties by location, price, and other criteria. This makes it easier for buyers to find properties that meet their specific needs and preferences.
Virtual tours: With the help of virtual reality and augmented reality, mobile apps are providing virtual tours of properties, which is particularly useful for buyers who are unable to visit properties physically.
Property management: Mobile apps are also being used by landlords and property managers to manage their properties, including tracking rent payments, maintenance requests, and other tasks.
Mortgage calculators: Mobile apps are providing mortgage calculators, which can help buyers estimate their monthly payments and determine their affordability.
Real-time communication: Mobile apps are offering real-time communication channels, such as messaging and chatbots, allowing buyers to connect with real estate agents and property developers to ask questions and get quick responses.
Some examples of popular real estate mobile apps in the Middle East include Bayut, Property Finder, and Dubizzle. These apps have gained significant traction in the region, with many buyers and sellers relying on them for their real estate needs. The rise of mobile apps in the Middle East’s real estate industry is expected to continue, as more buyers and sellers embrace the convenience and efficiency of these tools.
Is the Middle East’s real estate sector bouncing back?
Due to the increase in oil prices and government policies, and the ever-upcoming international events, Dubai has become a host to many global and economic amenities.
Top 10 Real Estate Agencies in Dubai
- Bayut
- FAM Properties
- John Taylor
- Better Homes
- Haus and Haus Real Estate Broker
- Provident Real Estate
- Driven Properties
- Allsopp and Allsopp real estate broker
- Al Habtoor Group LLC
- PH Real Estate Brokers Dubai
What Are the Challenges with Real Estate Industry in the Middle East?
The potential delays in deliverables, shortage of labor, rising costs, and lack of materials are influencing nearly all companies. About 44 multinational companies including Baker Hughes, PepsiCo, Schlumberger, Philips, Halliburton, and Novartis have relocated their regional offices around this area. This creates a need for office space. Alternatively, mobile apps can be an important tool for the real estate sector in the Middle East for several reasons:
Convenience: With mobile apps, buyers, sellers, and renters can search for properties, schedule viewings, and make inquiries at any time, from anywhere, using their mobile devices.
Accessibility: Mobile apps make it easier for people to access property information, including photos, videos, and floor plans, which can help them make more informed decisions about which properties to visit.
Time-saving: Mobile apps can help real estate agents and brokers save time by allowing them to manage their listings and respond to inquiries on the go, without having to be tied to a desk.
Efficiency: Mobile apps can help automate certain tasks, such as appointment scheduling, which can free up time for agents and brokers to focus on more important tasks.
Competitive advantage: Real estate companies that offer mobile apps may have a competitive advantage over those that do not, particularly in a market where convenience and accessibility are important factors.
Safety: With the current pandemic situation, mobile apps can be a safer option for property buyers and sellers to browse properties, connect with agents, and schedule viewings remotely.
Conclusive: The Why and How of Introducing Mobile Apps into Real Estate in the Middle East!
Mobile apps can provide a range of benefits for the real estate sector in the Middle East, including increased convenience, efficiency, and accessibility, which can help real estate companies stand out in a competitive market. These remove the gap between the builder and the user. It removes the accessibility and brings in 3D rendering with a better real estate experience. Applications also make it easy to handle the property. These are easy to access at any time and give the best buying experience. Plus, you get some handsome discounts and deals.
Konstant Infosolutions can help you partner with software developers via its field expert software developers community. They are vetted for their expertise and are experienced in developing mobile apps for mobile industries. Contact us now!