Student accommodation and senior living are key to shaping the GCC’s real estate sector over the next decade, according to leading real estate advisory and property consultancy, Cavendish Maxwell.
These and other concepts like serviced living, co-living, private clubs, shared ownership and other professionally managed residential developments represent some of the region’s biggest future investment opportunities, as traditional lines between where people live, stay, work and socialise are becoming increasingly difficult to define, it stated.
According to Cavendish Maxwell experts, branded residences – a sector in which the Middle East is leading the way in terms existing and pipeline projects – will remain an important market component, but the next chapter is set to become much broader.
Zacky Sajjad, Director of Business Development and Client Relations, Cavendish Maxwell, said: "For much of the past decade, the GCC’s residential and hospitality story has been dominated by luxury, with branded residences, five-star hotels and increasingly ambitious mixed use developments helping cities like Dubai, Abu Dhabi and Riyadh stake their claim on the global investment map."
"The next 10 years are likely to see a shift towards co-living across several concepts, with market fundamentals underscoring the demand," he added.
Sajjad pointed out that governments across the region want to attract new international talent, grow tourism, expand universities, increase home ownership and diversify their economies.
"At the same time, populations are growing and becoming more internationally diverse, while the expectations of residents are changing. Increasingly, people are not simply buying or renting four walls; they want convenience, flexibility, community, services and experiences," he noted.
“This changes the conversation for developers and investors. It is no longer a question of whether to build residential or hospitality: it’s about understanding who will live there, how they want to live, what services they value and what they are prepared to pay for them. The GCC continues to demonstrate an extraordinary ability to deliver high-quality real estate at scale and, with the economic and demographic changes taking place across the region and strengthening the case for new concepts, there is a real opportunity for investors and developers to apply that capability to a wide and diverse range of alternative living concepts that will further enhance the strength of the property sector,” he added.
While not every international model will translate directly into a GCC context, they will work if adapted appropriately. Co-living in London, student accommodation in Manchester or senior living in the US cannot simply be replicated in Dubai or Riyadh without considering local demographics, cultural expectations, affordability, regulation and family structures.
"Take senior living as an example," said Sajjad. "With the rising cost of living, accommodation and care in countries such as the UK, the UAE is potentially an attractive alternative for internationally mobile retirees seeking a high quality of life, safety, connectivity, year-round sunshine and access to high-quality healthcare and hospitality led services," he noted.
"Rather than replicating the traditional retirement home model there is an opportunity to rethink senior living altogether combining independent living, hospitality, wellness, healthcare and community," he added.
According to Sajjad, the same argument can be made for purpose-built student accommodation.
The UAE’s higher education sector has expanded considerably with a growing university ecosystem and ambitions to attract more students from across the Middle East, Africa, Asia and further afield.
As that population grows and becomes increasingly international there is a logical opportunity for professionally managed accommodation designed specifically around student needs, incorporating community, security, amenities, technology and study facilities, he added.
Cavendish Maxwell also believes that co-living also deserves greater attention, particularly in Dubai. Although they are now starting to moderate after sharp rises since the pandemic, residential rents can be unaffordable for some residents, particularly young professionals and those newly arriving in the city.
A professionally managed co-living model could provide a more flexible and accessible entry point while offering something traditional house sharing often does not, purpose designed communal areas, services, amenities and a genuine sense of community.
Sajjad said: "These examples demonstrate why alternative living sectors should not simply be viewed as concepts imported from mature international markets. The GCC has a golden opportunity to create its own versions, drawing on one of the region’s greatest strengths – hospitality."
"The result could be a new generation of hospitality-led living concepts sitting somewhere between traditional residential and hotel accommodation and responding to how people increasingly want and need to live," he stated.
“Data and market intelligence is critical in identifying genuine gaps in demand rather than following the latest property trends. The next stage of the GCC property market will not only be about building more homes or hotels, but more about creating more sophisticated choices for living and delivering the next chapter in the region’s real estate success story," he added.-TradeArabia News Service