Page 69 - UP PR REPORT - AUGUST 2025

8/21/25, 11:24 AM From icons to infrastructure: Union Properties CEO on GCC’s real estate evolution
For institutional investors and occupiers alike, integrated communities offer great benefits, including higher
occupancy, longer lease tenures, and more stable, long-term returns. This demand is driven by rising consumer
expectations for lifestyle, convenience, and work-life balance, all of which are inherent to well-designed mixed-use
ecosystems.

These shifting preferences are reshaping the industry’s understanding of liveability and long-term value.

Infrastructure as catalyst for real estate growth
Simultaneously, infrastructure is playing an instrumental role in driving real estate expansion. Across the GCC,
massive investments in transport, logistics, utilities, and smart mobility are unlocking new opportunities for real
estate expansion and elevating land values while also boosting connectivity and enhancing quality of life.

In Q1 2025 alone, GCC real estate transactions totalled $78.2bn, representing a growth rate between 20.5 per cent
and 22.3 per cent compared to the same period in the previous year. Dubai led the market, accounting for nearly half
of the region’s total transaction value with $38.7bn in sales.

These figures underscore the market’s shift from speculative growth toward infrastructure-aligned, value-driven
expansion. Proximity to modern infrastructure hubs is also increasingly becoming a critical factor in shaping investor
preferences and influencing land value dynamics.

Digital revolution in real estate

Alongside physical infrastructure, digital transformation is another defining force in the real estate landscape. From
AI-driven design and virtual property platforms to digital transaction models, technology is fundamentally reshaping
how we plan, build, and manage real estate.

The rise of smart technologies is driving greater efficiency, transparency, and engagement across the value chain.
Dubai’s leadership in integrating tokenisation into its real estate registry, through a government-backed model, is a
global benchmark in regulatory foresight and innovation.

Furthermore, across the region, digital infrastructure is being aligned with smart city initiatives and sustainability
standards to future-proof urban development.

Sustainability and ESG taking centre stage in real estate sector
Sustainability has also become central to real estate strategy across the region. Beyond compliance with evolving
environmental regulations, sustainable buildings are now outperforming traditional assets in terms of tenant
retention, operational efficiency, and investor preference.

Regulatory frameworks are tightening, but the market shift goes beyond compliance. Developers and investors are
recognising that sustainable practices are central to long-term profitability.

From speculation to long-term value creation
The GCC real estate sector is maturing. Family offices, sovereign wealth funds, and global institutions are now
focusing on long-term, income-generating assets that align with ESG principles.
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