UAE Real Estate Market Overview: Insights and Projections for 2024
The real estate market in the UAE is set for a major boost as over 30,000 residential units are expected to be delivered by the end of this year, according to the latest report from JLL.
The report highlights the robust investor sentiment driving significant activity in various sectors across the UAE. In Dubai alone, approximately 10,000 residential units were completed in the first quarter of 2024, pushing the total stock to 729,000 units. Another 25,000 units are set to be delivered by the year’s end, with prime areas such as MBR City and Business Bay leading the way.
Abu Dhabi also witnessed a steady influx of residential units, with 1,600 completed in Q1 and another 6,000 expected by the end of the year. Faraz Ahmed, research director at JLL MENA, noted a 20% increase in residential sales transactions in Dubai and a 17% uptick in Abu Dhabi.
The report also shows substantial annual increases in pricing in both Dubai and Abu Dhabi, with sale prices and rentals soaring, particularly for apartments. Dubai saw a remarkable 22% surge in apartment rentals, while Abu Dhabi experienced a 9% increase in villa sale prices year-on-year.
In the hospitality sector, Dubai welcomed nearly 2,000 new hotel keys in Q1, with upscale properties in areas like Business Bay leading the growth. Abu Dhabi’s hotel supply remained stable, with an additional 500 keys expected. Both emirates saw an increase in visitors and average daily rates, indicating a strong performance in the tourism sector.
The office segment showed steady demand despite limited supply, with rental rates surging in both cities. Grade A rents in Dubai’s CBD jumped by 22% year-on-year, while Abu Dhabi recorded a 14% increase in average city-wide rents.
In the industrial sector, the UAE saw increased demand driven by the new India-UAE trade agreement and growing e-commerce activities. Warehouse rents surged in key areas, with strategic collaborations between developers to tackle supply shortages. Dubai South and Aldar, for example, are developing a Grade A build-to-lease logistics facility in Dubai South’s Logistics District.
Overall, the real estate market in the UAE is poised for growth across various sectors, fueled by strong investor sentiment and demand in key areas.
