| Egypt | Prime office in East Cairo, Grade A residential development in new urban communities, entertainment-anchored retail. | Mixed use development in upcoming areas around existing new urban communities. | Hospitality and adaptive reuse in central Cairo, mixed use developments in secondary governorates. |
| Saudi Arabia | High-end residential development in Riyadh, Grade-A office in Jeddah, retail in Dammam. | Mid-tier residential in Emerging Riyadh Districts, hospitality in Makkah and Medina, industrial in Dammam Industrial City. | Mixed-use projects in NEOM, luxury hospitality on the Red Sea Coast, tech-focused commercial real estate in Riyadh. |
| UAE | Secondary office in downtown Dubai, Secondary residential in the Dubai Hills. | Secondary residential in Dubai Discovery Gardens and Arjan. | Primary residential in Ras Al Khaimah, secondary residential and office in Dubai Silicon Oasis. |
Nearly three-quarters of Savills researchers from around the globe expect real estate investment activity to improve significantly in 2025, with a strong recovery in capital values also anticipated. The Middle East and North Africa (MENA) region, including key markets such as the UAE, Saudi Arabia, and Egypt, is primed to capitalise on these positive trends, driven by infrastructure development, visionary economic plans, and rising demand across various sectors.
Savills has projected global real estate investment turnover to grow by 27% to $952 billion in 2025 and surpass $1 trillion by 2026. Insights from the global survey of Savills 33 heads of research highlight increased optimism across all asset classes, particularly in the MENA region, where governments are pursuing ambitious urban development projects and policies to attract foreign direct investment.
Savills researchers have identified the prime office market as a significant driver of growth in MENA, with increased leasing activity and rental growth expected in major cities such as Dubai and Riyadh. The UAE continues to benefit from its strategic position as a global hub for trade and tourism, attracting international businesses and investors. Saudi Arabia’s Vision 2030 initiatives, including transformative projects are boosting demand for Grade-A offices and luxury residential developments, further cementing the Kingdom’s position as a key real estate investment destination.
Savills researchers are most optimistic about prime offices globally, with 81% anticipating rental growth and 91% forecasting rising levels of leasing activity. Rental growth expectations for 2025 are strongest in Saudi Arabia, the UAE, India, the UK, and Spain.
Savills has also grown more positive on secondary offices. With the repricing in these asset values having largely run its course, the international real estate advisor says secondary offices are now likely to attract value add and opportunistic investors. While the market will remain challenging, Savills researchers foresee modest rises in rents and take-up for secondary offices in the Middle East, India, Japan, South Korea, Denmark and Switzerland.
The industrial and logistics sector is also expected to attract significant interest, supported by the region’s expanding e-commerce market and its strategic role in global trade routes. State-of-the-art logistics facilities and distribution hubs in markets such as Dubai and Jeddah are positioned to benefit from this trend. Similarly, Egypt’s government-led urban expansion strategy, including the development of the New Administrative Capital, is driving growth in residential and entertainment-driven retail sectors, enhancing the country’s appeal to international investors.
Improved performance in the retail sector is also anticipated, as consumer confidence grows, and retail sales volumes increase across the region. The focus on mixed-use developments and high-quality shopping destinations reflects the region’s commitment to enhancing the retail experience while accommodating evolving consumer preferences.
Paul Tostevin, Head of Savills World Research, comments: ” After a chastening few years, the tide is turning. The cyclical factors weighing on property values and investment activity are beginning to recede, and the nascent recovery in real estate capital markets should gather momentum in 2025.”
Richard Paul, Head of Professional Services & Consultancy, Middle East, Savills adds, “The MENA region continues to demonstrate exceptional resilience and adaptability in the face of global economic shifts. By leveraging its strategic geographic position, ambitious infrastructure projects, and forward-thinking policies, the region is poised to become a top destination for real estate investment in 2025 and beyond. Investors are particularly drawn to the region’s emphasis on sustainability and innovation, which are increasingly critical factors in driving long-term growth.”
Sustainability remains a critical focus for real estate investment in the region. Savills researchers have emphasised the growing importance of ESG (Environmental, Social, and Governance) considerations in shaping investor strategies. MENA markets have made significant progress in adopting green building practices, renewable energy projects, and sustainable urban planning, aligning with global priorities and the increasing demand for environmentally conscious investments.
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About Savills Middle East:
Savills plc is a global real estate services provider listed on the London Stock Exchange. With a presence in the Middle East for over 40 years, Savills offers an extensive range of specialist advisory, management and transactional services across the United Arab Emirates, Oman, Bahrain, Egypt, and Saudi Arabia. Expertise includes property management, residential and commercial agency services, property and business assets valuation, and investment and development advisory. Originally founded in the UK in 1855, Savills has an international network of over 700 offices and associates employing over 40,000 people across the Americas, UK, Europe, Asia Pacific, Africa, and the Middle East.