Special report: Real estate - Margins rise

MEED has put itself in the shoes of an investor with $100m to invest in Middle East real estate, and taken advice from some of the region’s leading property analysts on where best to invest.

Many say that the greatest potential lies in Libya, which has immense needs and is undeveloped. But the North African state comes with significant risks. Its legislative, bureaucratic and physical infrastructure are relics from the Cold War.

Saudi Arabia also offers huge potential. It has a massive need for residential and commercial property, but can be frustratingly slow for developers, who need to move projects forward quickly.

Many will continue to invest in Dubai, where demand remains high and supporting infrastructure is in place.

But it is Egypt that perhaps represents the best prospects. Strong economic growth and structural reform programmes are set to rapidly expand the country’s middle class, who will be homeowners. Egypt is also experien-cing a rise in foreign investment in holiday homes. Most significantly, the country also has the lowest land prices in the region.

Special Report: Real Estate - index of all stories

• Investors spoilt for choice
  The Gulf’s property market is overheating and developers are looking for new opportunities

• The region’s biggest growth market
  Soaring demand for housing in the kingdom represents an ideal opportunity for developers

• High land prices limit opportunities in Kuwait
  High land prices are forcing investors to look beyond the country’s borders

• Rising costs increase risk
  With spiralling development costs and inflation, existing properties offer lower investment risk

• Residential demand fuels boom
  While political tensions are affecting investment in commercial, the residential market is booming

• Prices soar as investors seek stability
  Tehran’s housing market remains buoyant despite mounting political tensions

• Developers move upmarket
  Several upmarket housing projects are planned to cater to the growing middle class

• Following Dubai’s lead
  Dubai’s position as the leading investment attraction in the Gulf is being challenged

• The next big thing
  Companies are starting to target the untapped potential of the North African state