_The demand for Middle Eastern healthcare real estate

With the growth in medical tourism and the focus on domestic Arab Health issues, Knight Frank is witnessing an increase in inquiries for real estate to accommodate incoming providers in this sector. With local and international practices expanding across the G.C.C, the importance of gaining the right real estate advice is paramount to the feasibility of a project.

October 08, 2018

Over the years, the Healthcare sector within the GCC has witnessed exponential growth and has been a major component of all GCC government’s immediate and long-term plans. Government led initiatives and encouragement has led to significant amount of private sector investment, which in some markets is showing signs of maturity and is resulting in consolidation.

‘Rising life expectancies, rapidly growing populations and per capita incomes, a high incidence of lifestyle-related diseases, and ambitious medical infrastructure projects are driving health care industry growth in the Middle East’s,’’ says Shehzad Jamal, Partner at Knight Frank. ‘‘Real estate typically represents 40% of a hospital’s balance sheet—the third largest expense on the income statement and all too often, healthcare real estate is an untapped asset.’’

There are numerous medical ‘clusters’ in the Gulf such as DHCC, Dubai and Dilmunia, Bahrain (u/c), as well as Mubadala Healthcare’s venture with the Cleveland Clinic in Abu Dhabi. The region has great potential and growth opportunities for the resident population as well as for medical tourism.

An important trend is the single destination for multiple types of medical care. Multi-speciality locations will often include medical, office and lifestyle solutions. The purpose of which is to make it more appropriate and enjoyable for customers.

It is not just large scale projects and global brands looking at entering the Middle Eastern markets, but from smaller clinics, dentists to physiotherapists and specialist diagnostic centres.

Arab Health Week will be hosted at the Dubai World Trade Centre, 28 - 31 January 2018. Join Knight Frank’s Healthcare Development and Consultancy team who can advise on a full spectrum of services including market entry analysis, valuation, transaction support, operator search and selection.

Contact Shehzad Jamal for more information on how Knight Frank can assist with your real estate requirements.