Real Estate Boom in the Middle East… will continue for at least another 10 years. Experts view is that if there is no natural calamities this trend will remain buoyant for the next decade and it will be difficult to get hotel rooms to residence to live in next five years.As we saw in the last
Middle East Real Estate Predictions:
To succeed in a disruptive economy, important decision makers may gain an edge by altering the data analysis process to generate real, concrete outcomes by using the exponential potential of Artificial Intelligence.
Using digital innovation and technology to create dynamic 3D models and collaborative data platforms can assist improve infrastructure design, transportation, and resource use.
During the real estate development process, a study of available data sources, integrated data management, and a solid implementation strategy may assist quick access to data and predictive capabilities.
Real estate fractional ownership, enabled by blockchain technology, can make assets liquid and transferable among a more diversified pool of investors.
According to a recent analysis by Boston Consulting Group, retail investors have contributed to the expansion of the Middle East’s assets under management (AUM) market, which saw a double-digit gain in 2021. (BCG).
Retail investors made up nine percent of the region’s overall AUM last year, outpacing institutions as a source of capital. During the same time period, institutional investor net flows decreased by 3%.
Retail investors have surpassed institutional AUM to become one of the most significant investor sectors, according to BCG.
AUM in the area increased by 16 percent to $1.2 trillion last year, above the 10-year growth average by a wide margin. In the same time frame, global AUM increased by 11% to $112 trillion, a significant increase over the 7% average of the preceding two decades.
The Middle East exchanges have already performed well this year, and this suggests that investors in the area would certainly do better than those who opted to participate in global markets, according to BCG.
Better and more accessible access to investment opportunities has contributed to the increase in net flows from the retail category.
According to Markus Massi, Managing Director & Senior Partner at BCG, “Asset managers have been able to penetrate deeper into the retail industry since technology has made it economically possible to service customers of all sizes.”
He said that several sizable brokerage firms are “democratising” investor access to more complex alternatives by using digital platforms and “robo-advisors.”
Retail clients now receive data-driven personalised advice, fractional shares, and simplified user interfaces for little to no cost, according to Massi.
