Hyderabad, Aug. 17, 2023 (GLOBE NEWSWIRE) -- According to a new market research report titled "GCC REIT Industry Report (2023-2028)," the market is estimated at USD 9.58 billion in 2023. It is expected to register a CAGR of 8.24% during the forecast period.
REITs have recently been listed on GCC stock exchanges as part of the National Transformation Program and Saudi Vision 2030. Despite wealthy individuals and institutional investors in the GCC, REITs are not as popular as in advanced countries. The lack of a regulatory framework for the listing and operation of REITs is a major obstacle to their development in the region. However, the future outlook for REITs in GCC looks positive, as new investors are seeking diversified investment products for their local portfolios. Islamic REITs offer an appealing option for traditional investors interested in Sharia-compliant products across various asset classes, including real estate.
Report Summary:
| Report Attribute | Details |
| Market Size (2023) | USD 9.58 billion |
| Market Size (2028) | USD 14.23 billion |
| CAGR (2023-2028) | 8.24% |
| Study Period | 2018-2028 |
| Forecast Units | Value (USD billion) |
| Report Scope | Market Dynamics, Revenue Forecast and Segmentation, Competitive Landscape and Recent Developments, Market Growth, Future Opportunities, and Trends |
| Key Market Drivers | Opportunities in Islamic REITs. |
| Saudi Vision 2030 and National Transformation Program. |
Who are the Top Companies in the GCC REIT Industry?
Currently, the market is dominated by a few major players. The significant players in the GCC REIT industry are,
- Riyadh REIT
- Emirates REIT
- ENBD REIT
- Al Rajhi REIT
- Jadwa Saudi
- Derayah REIT
- Alkhabeer REIT
- Swicorp Wable REIT
- Bonyan REIT*
Other Reports That Might Be of Your Interest:
- Europe REIT Industry Report - The European REIT Industry is currently worth USD 250 billion and is poised to achieve a CAGR of more than 5.7% over the next five years.
- Real Estate Industry in India Report - The real estate industry in India is estimated at USD 265.18 billion in 2023. It is expected to reach USD 828.75 billion by 2028, at a CAGR of 25.60% during the forecast period (2023-2028).
Key Highlights from the GCC REIT Industry Report:
Growing Asset Allocation to Real Estate by Large Investors
- Currently, only 33% of sovereign wealth funds (SWFs) allocate 10% or more of their portfolio to real estate. However, this is expected to change in the GCC region, with about 70% of SWFs targeting a 10% or more allocation to real estate.
- The appeal of the real estate sector lies in its ability to generate consistent cash flows from rental income, act as a hedge against inflation (due to contract-based rent escalations), offer healthy yields, and the potential for capital appreciation.
- Property price corrections in the United Arab Emirates have prompted investors to seek alternative investment options for wealth preservation and growth. The current downturn in the real estate sector presents an opportunity to invest in REITs.
GCC REITs Average 1-Year Returns
- Real estate investment trusts in the United Arab Emirates offer attractive dividend yields compared to the global average. Higher returns due to tax-free rental income and exemptions on capital gains taxes make it more appealing for real estate investment compared to many other global locations.
- In Saudi Arabia, the situation is different due to a rapid increase in REIT listings without sufficient diligence on the quality of assets.
- Initial entrants gained a premium on listing but long-term performance hinges on the quality of the underlying real estate.
What are the Latest Developments in the GCC REIT Industry?
- In September 2022, Saudi Arabia introduced a real estate investment trust (REIT) regime.
- In November 2016, Riyad REIT became the first REIT to be listed in Saudi Arabia (and only the second REIT to be listed in the Middle East).
- In January 2021, the Dubai Financial Market (DFM) began trading in Real Estate Investment Trusts (REITs) by listing Al Mal Capital’s REIT.
Mordor Intelligence has Segmented the GCC REIT Industry Based on Country.
- By Country (Market Size and Forecast based on Value (USD billion), 2018-2028)
- United Arab Emirates
- Saudi Arabia
- Bahrain
- Oman
- Qatar
- Kuwait
In a nutshell, the Mordor Intelligence market research report is a must-read for start-ups, industry players, investors, researchers, consultants, business strategists, and all those who are looking to understand this industry. Get a glance at the GCC REIT Industry Report (2023-2028).
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About Mordor Intelligence:
Mordor Intelligence is a market intelligence and advisory firm. At Mordor Intelligence, we believe in predicting butterfly effects that have the potential to change or significantly impact market dynamics.
Our market research reports are comprehensive and provide exclusive data, facts and figures, trends, and the competitive landscape of the industry.
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