GCC real estate's new capital map: European and Latin American managers enter Gulf markets

The GCC real estate market reached USD 141.2 billion in 2025, with the UAE commanding a dominant 61.1% share, according to IMARC Group. Behind these headline figures, a quieter but structurally significant shift is underway: European, Latin American, and other Western alternative asset managers are building positions across Gulf property markets, moving beyond the Indian-GCC and Chinese state enterprise corridors that have dominated cross-border capital flows in recent years.

Names such as Azora, Atlas Mena Capital, Turnbridge Equities, and institutional allocators like the Abu Dhabi Pension Fund now form part of a broader map of international capital targeting operationally intensive asset classes, particularly hospitality, logistics, and experiential mixed-use developments. The trajectory points toward a market that is diversifying its investor base at the same moment it is scaling supply across every major property segment.

A USD 260.3 billion market by 2034

The growth runway is substantial. IMARC Group estimates the GCC real estate market will reach USD 260.3 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 7.03% over the 2026-2034 period. This expansion is supported by pipeline data across every core asset class.

According to Alpen Capital, GCC residential supply is expected to increase from approximately 6.26 million units in 2025 to 7.28 million units by 2030. Office supply across the region is estimated to expand from 33.3 million square metres in 2025 to 42.4 million square metres by 2030. Hotel room supply is anticipated to grow from 345,400 rooms in 2025 to 409,900 rooms by 2030.

These projections collectively signal a market that requires not only development capital but also sophisticated operational and asset management capabilities, precisely the competencies that European and international alternative managers bring to the table.

Who are the European and Latin American managers entering GCC real estate?

The entry of non-traditional international capital into the GCC follows distinct patterns depending on origin, strategy, and asset class preference.

Azora is a major European real estate investment manager actively deploying capital in hospitality, according to Zawya. The firm represents the broader wave of international alternative managers exploring cross-border opportunities in the Gulf, where the hospitality sector's expansion creates natural entry points for managers with deep experience in tourism-linked real estate across Southern Europe.

The Gulf's hospitality pipeline alone, with 64,500 new hotel rooms expected by 2030 according to Alpen Capital projections, offers a scale of deployment opportunity that is increasingly difficult to find in mature European markets. For managers like Azora, the GCC provides access to yield-generating, operationally intensive assets in economies with strong tourism growth fundamentals.

Amine Bouchentouf serves as Chief Investment Officer of Atlas Mena Capital, focusing on experiential real estate and cross-border partnerships across MENA, Europe, and Latin America, according to GRI Institute. Atlas Mena Capital's strategy exemplifies the triangular capital flows now connecting European asset management expertise, Latin American investor networks, and Gulf deployment opportunities. The firm's focus on experiential real estate, a segment that blends hospitality, leisure, and lifestyle components, positions it at the intersection of two of the GCC's strongest growth themes: tourism infrastructure and branded residential development.

Experiential real estate represents one of the most capital-intensive and management-intensive segments within Gulf property markets, making it a natural fit for alternative managers with operational track records.

Andrew Joblon is the Founder and Managing Principal of Turnbridge Equities, which manages a multi-billion dollar portfolio including large-scale logistics centres, according to Turnbridge Equities. While Turnbridge's primary portfolio is US-focused, the firm's expertise in logistics and industrial real estate aligns with a GCC sector that is expanding rapidly as Gulf states invest in supply chain infrastructure, e-commerce fulfilment, and trade corridor assets.

Logistics real estate has emerged as one of the highest-conviction sectors for institutional capital globally, and the GCC's geographic position as a trade hub between Asia, Europe, and Africa makes it a logical target for managers seeking to replicate strategies that have generated strong risk-adjusted returns in Western markets.

Jorge Cantonnet serves as Director of the Real Estate and Infrastructure Division at the Abu Dhabi Pension Fund, overseeing strategic investments in these sectors, according to GRI Institute. The Abu Dhabi Pension Fund's role highlights how Gulf institutional allocators are themselves facilitating cross-border capital entry by co-investing alongside international managers, providing local market access and regulatory navigation in exchange for operational expertise and deal flow from global platforms.

This co-investment model is becoming a defining structural feature of GCC real estate capital formation, creating alignment between sovereign and institutional Gulf capital and international alternative managers.

How are regulatory reforms reshaping foreign access to GCC real estate?

The regulatory environment is evolving in ways that directly enable international capital deployment. Saudi Arabia's Law of Real Estate Ownership by Non-Saudis, enacted under Royal Decree M/14, permits non-Saudi individuals, companies, and investment funds to own residential and commercial property within designated zones. The law replaces the previous 2000 framework and becomes effective in January 2026.

This reform is structurally significant for international alternative managers. Previously, foreign ownership restrictions in Saudi Arabia channelled cross-border capital primarily through joint ventures with local partners or through indirect fund structures. The new framework allows direct property ownership within designated zones, reducing structural complexity and improving the risk-return profile for foreign deployers.

Combined with the UAE's established freehold framework, which has been the primary gateway for international real estate investment in the Gulf for over two decades, the Saudi reform creates a second major market where European and Latin American managers can deploy directly. The regulatory convergence between the two largest GCC economies is accelerating the diversification of the region's investor base.

Foreign ownership reform in Saudi Arabia, combined with the kingdom's Vision 2030 development programme, is creating the conditions for a structural increase in cross-border real estate investment that extends well beyond traditional Gulf capital sources.

What asset classes are attracting cross-border alternative capital?

Three asset classes are emerging as the primary entry points for European and Latin American alternative managers in the GCC.

Hospitality and experiential real estate represents the most active deployment category. The GCC's hotel room pipeline, growing from 345,400 rooms to an anticipated 409,900 rooms by 2030 according to Alpen Capital, is creating opportunities across the full spectrum from luxury branded residences to mid-market extended-stay formats. European managers with hospitality track records, such as Azora, find a natural strategic fit in markets where tourism arrivals are growing and where government-backed mega-projects require experienced operators.

Logistics and industrial real estate is attracting managers with expertise in supply chain infrastructure. The GCC's position as a global trade node, combined with domestic e-commerce growth and government investment in free zones and port infrastructure, creates demand for institutional-grade logistics facilities that international managers are well positioned to develop and operate.

Mixed-use and branded residential developments represent a convergence of residential supply growth and lifestyle branding. With GCC residential supply expected to reach 7.28 million units by 2030 according to Alpen Capital, the market's appetite for differentiated, branded product creates partnership opportunities between Gulf developers and international managers with lifestyle and hospitality platforms.

The common thread across all three categories is operational intensity. International alternative managers are entering the GCC through asset classes that require active management, brand affiliation, and cross-border operational expertise, rather than through passive capital allocation to core stabilised assets.

The structural shift from development to yield

The entry of European and Latin American alternative managers into the GCC reflects a maturation of Gulf real estate markets. As the region transitions from a development-led growth model toward yield-generating, operationally intensive asset strategies, the capabilities that international alternative managers bring, including institutional asset management, hospitality operations, logistics platform development, and structured co-investment frameworks, become increasingly valuable.

GRI Institute's engagement with senior leaders across these capital corridors, through dedicated events and strategic forums, continues to map the evolving relationships between Gulf institutional capital and international alternative managers. The cross-border capital flows now forming between Europe, Latin America, and the GCC are reshaping the investor composition of one of the world's fastest-growing real estate markets.

For the GCC, the diversification of capital sources beyond traditional corridors strengthens market resilience. For international alternative managers, the Gulf offers a combination of scale, regulatory modernisation, and yield potential that is increasingly scarce in mature Western markets. The convergence of these two forces is defining the next chapter of GCC real estate investment.