Forecasted demand of housing units in the Gulf Cooperation Council by 2022, by country (in millions)

In 2019, Saudi Arabia was expected to have the highest housing demand by 2022 in the Gulf Cooperation Council (GCC), at nearly ************ residential units. The United Arab Emirates followed with just under *********** units by 2022.

Housing situation in the GCC

Increasing population growth and rapid urbanization put tremendous pressure on GCC’s housing supply, which had already been witnessing a shortage in affordable housing. Following a 2020 slump amid the COVID-19 pandemic, residential rents and housing prices in the region would likely pick up, in line with anticipated increasing housing demand in 2022. The existing demand-supply gap in the housing sector indicates a room for improvement and further action in form of housing policies and subsidies.

The construction industry

In 2019, the GCC construction industry was valued at approximately 140 billion U.S. dollars, with the largest share attributable to the buildings sector. Prior to the pandemic, the Gulf Cooperation Council was undergoing large-scale residential and commercial construction projects, such as the Dubai Expo 2020 and the FIFA World Cup 2022 in Qatar. Despite the one-year delay and numerous pandemic-related hardships, the 2020 Expo in Dubai is expected to leave a positive and long-lasting imprint on the construction industry.