Editorials

Global real estate investment is entering a phase of sharp divergence, defined by new regional capital hubs, specialised asset classes and the strategic repositioning of private investors. Over the past month, headlines have shifted from broad recovery narratives to focused plays on regional strength, technological advancement and disciplined capital deployment.

Three forces shaped global activity:

1. Massive capital flows driving Middle Eastern giga-projects.

2. The rise of technology-led asset classes such as quantum computing facilities.

3. A pivot by private investors toward niche, value-driven sectors outside traditional institutional markets.

Middle East’s Capital Wave

As debt costs and valuation pressures persist, investors are concentrating on high-growth geographies and specialised opportunities with clear operational upside. The region remains the global epicentre for large-scale real estate development and sovereign-backed investment.

• Saudi Arabia’s Vision 2030 in Motion

The Public Investment Fund (PIF) continues to anchor national development, signing an MoU with Jones Lang LaSalle Saudi Arabia Company Limited (JLL) to enhance collaboration and innovation. Red Sea Global (RSG), developer of Saudi Arabia’s flagship regenerative tourism destinations, secured a SAR6.5 Bn credit facility to advance its AMAALA project – reinforcing sustained confidence and liquidity in giga-project financing.

• Dubai’s Move Toward Maturity

Dubai’s residential sector is stabilising but remains highly active. Off-plan sales represented around 70% of transactions as buyers pursued flexible payment plans and long-term residency incentives. While new supply is tempering rent escalation, strong demand persists, driven by golden visa policies and continued inflows of global high-net-worth investors.

The Next Frontier: Quantum and AI Real Estate

Technology is no longer just influencing property—it is defining entirely new asset categories.

• Quantum Computing Facilities

Following the AI infrastructure boom, attention is turning to “quantum real estate.” These facilities require vibration-free, electromagnetically shielded environments with extreme cooling systems. These developments are the latest rarefied niche for developers and infrastructure investors targeting next-generation tech demand.

• AI-Powered Data and Design

Soaring AI workloads are transforming logistics and industrial assets with developers converting underutilised sites into data-heavy “AI factories.” Meanwhile, AI is increasingly embedded in design itself, exemplified by Sharjah’s District 11, the UAE’s first property development designed using artificial intelligence to optimise efficiency and transparency.

Shifting Investment Strategies

Capital deployment is becoming increasingly selective as investors adapt to tenant-led markets and seek overlooked value.

• Private Capital Goes Small and Strategic

Declaration Partners, founded by Carlyle Group’s David Rubenstein, raised $303 million for a US real estate fund focused on smaller, under-the-radar deals in multifamily, industrial, and affordable housing sectors. The move underscores growing private interest in mid-market, value-add opportunities outside institutional competition.

• US Rental Concessions Reach Record Highs

Landlords across the U.S. are offering unprecedented incentives—such as free rent periods and parking—to attract tenants without cutting asking prices. These concessions highlight rising vacancy pressure and a more competitive rental environment.

October’s investment landscape underscored a decisive shift from cyclical recovery to strategic precision. The Middle East continues to deploy vast capital into transformative national projects, while AI and quantum technologies are defining the next era of physical infrastructure. The strongest gains will accrue to agile investors capable of reading regional nuances and building long-term value through specialisation, innovation and disciplined execution.

To stay ahead of the curve and all the trends impacting the global real estate investment sector, join RISE Expo & Summit from 13 – 15 January 2026 at Dubai Expo City.