A.T. Kearney has estimated the affordable housing market in the MENA region to be worth as much as $125 million annually.
In Saudi Arabia, it is thought there is an annual shortage of 150,000 units and in Egypt of 280,000 units. Many regional developers are revising plans for high-end mixed-use projects to incorporate more affordable residential space, and more can be expected in this area, the firm said.
"To succeed in the middle-income markets in the Gulf region, government agencies and developers must shift their business models and views on, particularly land prices and profitability," Olivier Laroche, principal in the real estate practice, A.T. Kearney Middle East, said.
