Real estate deals in the Gulf Cooperation Council countries grew by 52 percent on an annual basis in 2021. At a time when real estate capitalization rates vary for the year 2022, according to the potential effects arising from the expectations of raising the interest rate for the current year.
According to a report issued by the Kuwait-based KAMCO Investment Company, the value of real estate deals in 2021 amounted to about $137.4 billion, exceeding the levels of 2020 of $90.5 billion, while in 2019 it recorded $96.5 billion.
The report indicated that Saudi Arabia contributed more than 41 percent of the total value of deals, while the UAE (Dubai and Abu Dhabi combined) added 33.4 percent to the total deals that took place in the region during 2021.
According to the report, the number of deals in 2021 reached 663.3 thousand, compared to 570,000 deals in 2020. The reason for the rise in real estate transaction activities is to seize unique buying opportunities, and to mortgage investors who were keen to obtain low rates for mortgage operations, in addition to the initiatives Governmental housing and mortgage support.
Source (Al-Sharq al-Awsat newspaper, edited)
