Page 72 - UP PR REPORT - AUGUST 2025

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.

https://www.msn.com/en-ae/money/news/from-icons-to-infrastructure-union-properties-ceo-on-
gcc-s-real-estate-evolution/ar-AA1KQI1q?ocid=BingNewsVerp