Across the Middle East, rising property prices and a chronic
shortage of housing supply are creating stark affordability risks for
millions. In Riyadh, home prices have surged by 81% and apartment prices
by 56% since 2020, putting ownership out of reach for many Saudi
residents—especially considering a homeownership rate of only 53.2% in
the capital. A similar picture is unfolding in Dubai, where rent for a basic
one bedroom averages $1,400/month, while the majority of low paid
migrant workers earn just $300–550/month, forcing them into overcrowded,
unsafe housing. With strong urbanization rates—56% today, rising to 68% by
2050 in MENA—the demand for affordable housing is only increasing.
Many markets in the Gulf face high volatility. In cities
like Dubai and Riyadh, 30–80% of households struggle to afford shelter
due to inflation, borrowing costs, and supply constraints. Interest rates that
shift mortgage costs, combined with speculative price jumps, make assets highly
mobile and financial projections risky.
Knight Frank projects Saudi Arabia must build 115,000 new
homes annually for six years just to meet current demand—yet much of the
new stock focuses on luxury or giga projects like NEOM and Diriyah Gate,
leaving middle income residents underserved. Dubai has plans for 17,000 new
affordable units, but it still falls short of demand amid growing rental prices
and limited low cost options.
Construction costs are heavily skewed toward labor, which is
increasingly scarce and expensive. Riyadh averages $2,593/sq-m in build costs—far above
Dubai ($1,874) or Abu Dhabi ($1,844). Labor shortages and competition from
mega-projects drive up wages and reduce productivity in affordable housing
initiatives. Meanwhile, material side costs increase by 30–40%, further
squeezing budgets, though not to the same extent.
With housing costs rising and borrowing rates climbing—from
3% to 5% in Saudi Arabia—mortgage accessibility has dropped sharply.
Residential lending volume fell, and further corrections in global oil prices
or slowing economies could trigger demand shocks. For many Saudis and expats,
median budgets fall well below market prices, with 40% unwilling to spend
over SAR 750,000,
while average two-bedroom units often exceed SAR 800k.
These groups are positioned to benefit significantly by
integrating platforms and modular, data-driven models that anticipate cost
pressures and optimize workflows.
At RealCube, we empower stakeholders in the Middle
East to reduce risk, enhance visibility, and improve outcomes in affordable
housing:
By aligning analytics, planning, and execution, RealCube
helps navigate high-risk markets—balancing affordability and growth with
measurable performance.
The Middle Eastern housing market is under strain: supply
shortfalls, high labor costs, rapid price escalation, and affordability gaps
for 30–80% of consumers. Yet these challenges also point to
opportunity—particularly for those who embrace modular solutions,
data-driven platforms, and integrated property workflows.
RealCube is more than a management tool—it’s the backbone
for building stability in a volatile, expensive, and fast-evolving environment.
For developers, asset managers, financiers, and policy-makers dedicated to tackling
the housing crisis, we enable better decisions and tangible impact—today
and into tomorrow.
In today's fast-paced world, effective facility management is crucial for maintaining efficient operations…
In the realm of real estate, the convergence of technology with sustainable practices in managing resources…
Our world is transforming. Every day, we're witnessing how technology is revolutionizing different aspects…
Facility management is a complex and multi-faceted field, and there are a variety of contract types…
As a property manager, it's important to always be on the lookout for new opportunities that can unlock…
When it comes to managing a facility, there are a lot of moving parts. To help keep track of everything,…
Technology has infiltrated every aspect of our lives, and the real estate industry is no exception.…
Sustainability is a critical consideration for businesses of all sizes and in all industries. In the…
Property asset management is the process of overseeing and managing a property or group of properties.…