The dynamic real estate market in the United Arab Emirates that over the past 5 years has fuelled more than US $300 billion in local, regional and international investment commitments in the country, has resulted in the UAE achieving the highest investment ranking of all the GCC countries in real estate investments, according to RSP Group, the largest regionally-based real estate and hospitality investment advisory organization in the Middle East on Monday.
RSP Group identified a series of GCC real estate mega trends and key market indicators that provide the comparative basis for the rankings of the GCC countries.
Announcing this in Dubai, RSP Group Managing Partner Blair Hagkull said, “Over the past 5 years the GCC real estate markets have witnessed unprecedented growth in a number of key sectors. Based on our extensive research, it is clear that the UAE is the leading country in terms of real estate investment and direct opportunities for local, regional and international real estate investors.”
“RSP Group recognizes the need to create a regional real estate benchmark as well as the keen interest of real estate investors in accessing comparative data and analysis within the GCC countries” said Hagkull. “Our MarketWatch real estate investment rating measures the relative real estate investment environment in the GCC countries. In developing this rating we were cognizant that the regional market needs fact-based analysis that is measurable, current, market specific and reflects the evolving nature of the marketplace”.
RSP MarketWatch comparatively measures a defined range of GCC market indicators, including: macro-economic performance, real estate demand drivers, land cost and accessibility, cost of construction, legal framework, zoning risk, freehold policy, infrastructure development, market size and overall investment opportunity.
As the RSP MarketWatch rating compares the relative investment climate and opportunities within the GCC countries, it is important to note that in a global context, the rate of change and relative investment opportunities for all GCC countries remains strong when compared with most developed real estate markets. “As compared with more mature real estate markets in Europe, North America and Asia, there is significant opportunity within all GCC countries” said Hagkull.
RSP Group Real Estate Investment Ranking
Least Moderate Most
1 1.5 2 2.5 3 3.5 4 4.5 5
Overall Score
Bahrain 3.2
Kuwait 3.0
Oman 3.4
Qatar 3.5
KSA 3.5
UAE 3.9
Source: RSP Group Marketwatch, April, 2006
The RSP MarketWatch GCC Real Estate Investment rating indicated that while the UAE leads the comparative survey, Qatar and Saudi Arabia followed closely behind. Significant progress was noted within Oman that contributed to its strong showing with structural challenges within Bahrain and Kuwait contributing to their lower ranking.
RSP Group is the largest, regionally-based real estate investment advisory organization in the Middle East. Over the past year RSP Group has worked in 20 Middle East – North African countries on real estate and hospitality developments in excess of US $80 billion.
RSP Group’s core advisory services include Development Advisory, Project Financing, Asset Management and Fund Development and Asset Acquisitions and Disposals. RSP Group has provided strategic advisory services on many of the region’s largest and most prestigious real estate and hospitality developments. Its ‘blue chip’ client base is comprised of many of the leading international and regional banks, real estate developers, and investors throughout the Middle East.
