The influx of new hospitality and tourism-related projects
in the region is also fostering recent trends that add value and efficiency and
yield better investment returns.
MENA’s booming tourism sector
The introduction of simplified visa processes, aggressive
marketing campaigns, green initiatives, innovation and technology, increased
connectivity with new players in the airline sector, and personalized guest
interaction are all playing a vital role in the growth of the Middle East’s
Supporting the growth in the MENA’s tourism sector, global
real estate consultancy Colliers said a significant volume of
hospitality-related transactions is currently at an advanced negotiation stage,
with high-profile properties expected to change hands in the coming months.
“There’s a strong appetite for the hospitality asset class –
particularly in Dubai and Ras Al Khaimah – from regional and international
investors, buoyed by strong operating performance last year and the continued
enhancement of the UAE as a top-tier international tourism destination,”
James Wrenn, executive director and head of Capital Markets,
MENA at Colliers.
Saudi Arabia’s real estate projects hit $1.25tn
Meanwhile, Knight Frank said the value of Saudi Arabia’s real estate and infrastructure projects has crossed $1.25tn with the value of commissioned projects reaching $250bn.
The consultancy firm’s Saudi Giga Projects Report revealed that Western Saudi remains a central piece in the transformative vision for the kingdom, with real estate projects valued at $687bn expected to be delivered by the end of the decade.
NEOM, the $500bn megacity, is progressing rapidly, with $70bn of projects now awarded,
5 percent of which has been completed.
Riyadh remains a pivotal focus point for Saudi Arabia’s transformation and currently accounts for 18 percent of all real estate and development projects underway, with a combined value of $229bn