{{item.videoDuration}}
{{item.title}}
{{item.text}}
{{item.videoDuration}}
{{item.title}}
{{item.text}}
Real estate has long been a core economic sector and investment of choice in the Middle East region, buoyed by strong demand fundamentals from solid population and GDP growth, as well as excess liquidity from oil. Realizing its importance in shaping their nascent economies and its action as a catalyst for growth and diversifying the economy through reduced dependence on oil, many local governments have set up large national real estate development champions and pushed to establish ambitious mega-cities and urban developments. The sector was instrumental in addressing the needs of the region’s burgeoning youth, especially in housing and entertainment.
Albeit emerging, the regional real estate landscape has been rivaling the world’s leading markets, with plenty of media attention paid to the success stories of local champions and the grandeur of the many pioneering urban developments.
The region however is not a single uniform market, and remains divided into “old” markets and “new” markets, each with its own specificities that shape the real estate landscapes within.
The Middle East is divided into two main property markets. Key Middle East cities by market maturity:
Founded in the early 2000s, Strategy&’s Middle East real estate practice is the oldest dedicated practice for this sector among top-tier consulting companies in the region. We have supported over the years four main types of clients:
Over the past two decades, we have been working in tandem with our regional clients, offering end-to-end strategy-to-execution support across all facets of real estate — strategic diagnostics, strategy definition, digital and customer experience strategy, portfolio and asset management, operating model design, fund design and setup, project feasibilities and development support, and end-to-end implementation support.
Key trends
Key industry trends across all real estate entities in the Middle East are as follows:
How we help our clients
- Strategic diagnostic
- Strategy definition
- Digital and customer experience
- Land bank activation and monetization strategies
- Portfolio and asset management
- Fund design and setup
- Operating model evolution
- Mega-project feasibilities and development management office
Strategic diagnostic
Whether in preparation for the next growth phase, or to moderate a slowdown, we support real estate players in identifying and understanding their key performance and capability gaps vis-à-vis best practices and their aspirations.
- Performance assessment
- Capability gap assessment
Strategy definition
We help our clients achieve their growth aspirations and win in the market through end-to-end market and investment strategies.
- Mandate, vision, mission definition
- Market assessments
- Business model definition
- Market and investment strategy
- Delivery and operational strategy
- Financial projections
- Business plan definition
- Targets, KPIs, and dashboards
- Implementation plan
- Strategic PMO (end-to-end strategy implementation)
Digital and customer experience
We help our clients achieve customer service excellence and deliver on the latest customer trends and requirements with next-generation digital and value-added offerings, be it on the service, property, or master plan levels.
- Holistic customer experience strategy
- Digital strategy and implementation
- Next-generation and smart cities
Land bank activation and monetization strategies
We help our clients activate their dormant land banks and extract maximum value from them.
- Land portfolio segmentation and prioritization
- Investment strategy
- Financial projections
- Real estate entity setup and activation
- Legal structure and requirements
- Valuation and transaction support (debt and capital, tax, accounting, legal, deal support)
Portfolio and asset management
We support our clients in maximizing value from their real estate portfolios and enhance their efficiency through our rigorous portfolio and asset management services.
- Portfolio performance review
- Portfolio rationalization strategy Single-property value optimization Property business plans Valuation and transaction support (debt and capital, tax, accounting, legal, deal support)
Fund design and setup
We help clients take advantage of one of the fastest-growing financing trends in the region, by supporting them in defining and developing their real estate funds.
- Multi- or single-project fund design
- Fund business model and strategy
- Fund operating model
- Fund legal and tax structure
Operating model evolution
We help our clients reach operational excellence and develop best-in-class capabilities through our comprehensive operating model services.
- Organization structure design
- Job descriptions and KPIs
- Manpower requirements
- Board and management-level governance frameworks
- Delegation of authority
- Integrated real estate process design
- Key management processes
- Policies and procedures
- Operating model PMO (end-to-end operating model transition and migration support)
Mega-project feasibilities and development management office
We support our clients in creating, defining, and reviewing their mega-flagship developments by ensuring the optimal concept, commercial viability, and ability to secure partners and investors.
- Concept definition and value proposition
- HBU and asset-mix definition
- Infrastructure and superstructure development strategies
- Phasing strategies
- Regulatory frameworks and enablers
- Financial appraisals and optimizations
- Investor packaging strategies
- Investor briefs
- Project business plans
- Project implementation plans
- End-to-end development management office, working with master planning, cost consulting, and legal partners
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}
Case studies
- Strategic diagnostic
- Strategy definition
- Digital and customer experience
- Land bank activation and monetization strategies
- Portfolio and asset management
- Fund design and setup
- Operating model evolution
- Mega-project feasibilities and development management office
Strategic diagnostic
Performance gap analysis
A diversified real estate developer with the largest single-segment operating property portfolio in its country was looking to chart its next growth phase that would see it rival leading international peers in terms of GLA size.
Strategy definition
Mandate, business model, and strategy update
A national champion GCC developer that had recently expanded its mandate was seeking to redefine its role, business model, strategy, and operating model. Strategy& supported the client in all phases and provided a fully fledged transformation plan that would allow it to achieve its strategic evolution.
Growth strategy and business plan
A mid-sized retail and residential community developer in Saudi Arabia aspired to become the local market leader.
Asset management and growth strategy
A real estate developer and one of the largest real estate asset owners in Central America with a significant variability of returns from its widely varied assets needed to formulate a strategy to achieve future growth.
Digital and customer experience
Customer and digital experience strategy
One of Saudi Arabia’s largest developers was looking to enhance the customer experience throughout its entire portfolio, with a focus on the retail and entertainment properties.
Land bank activation and monetization strategies
Monetization strategy
A ministry in a GCC country was seeking to establish a real estate investment company to monetize unutilized assets in its land bank. Strategy& designed the strategy and business plan for the undertaking.
Land bank activation and strategy development
A large listed company in Saudi Arabia with an unutilized land bank engaged Strategy& to determine four plot feasibilities for its real estate arm and develop its mandate, strategy, business plan, operating model, and financial forecasts over the next 10 years.
Portfolio and asset management
Portfolio monetization strategy and operating model refinement
A GCC sovereign investor with a multi-billion dollar portfolio of local and international real estate and infrastructure assets was seeking to balance its portfolio.
Mall asset management and performance improvement plan
A large regional mall operator was looking to improve the performance of one of its flagship super-regional malls, with a GLA upward of 100,000 square meters.
Portfolio assessment and optimization, with implementation plan
A large European retail bank with a vast portfolio of real estate assets in several countries had become fragmented in a number of ways.
Fund design and setup
Flagship project fund structure
The real estate development arm of a GCC family group with leasehold land was looking to develop the mega-plot into a flagship mixed-use city.
Operating model evolution
End-to-end operating model evolution
A nascent Qatari developer was looking to cut cost overruns on its only mega-project, and to evolve from a one-project developer into a full-fledged developer and operator.
IPO readiness and fully fledged business transformation
One of the largest mall developers and operators in the GCC intended to file for an IPO. The client requested Strategy&’s assistance in assessing its IPO readiness, as well as our support in undergoing.
Mega-project feasibilities and development management office
Concept definition and feasibility study
A government-controlled developer was seeking to develop the new downtown area in the capital city, on a large tract of government-owned land. The proposed town center would provide a focal point for ...
Strategic plot feasibility and investor packaging
A large GCC family conglomerate with a real estate business was looking to develop two land plots in the capital city of its home nation. The client wanted to ensure the viability and feasibility of the projects,...
Destination revitalization strategy and master plan development
A leading developer acquired the rights to revitalize an island in a prime site in Malta. Although the developer has a 99-year lease, the government requires the site to be developed within the next eight years ...
Explore further
Creating value and differentiation for real estate developers - Interview with Zahi Awad
Residential real estate developers across the Middle East need to focus on customer experience, which will boost the value of their products and services so they can differentiate themselves further from their competitors in a maturing market.
Watch this Dubai One interview with Zahi Awad, Principal at Strategy& Middle East, where he shares key learnings on how developers can use innovative technologies and data insights to generate value.
4:19
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
Contact us
Connect with us
Menu