Outlook for UAE Real Estate Sector in 2024: Experts Optimistic Despite Global Challenges
The UAE’s real estate sector is primed for continued growth in 2024, with experts predicting a strong performance despite global uncertainties. The experts at a recent event hosted by JLL highlighted key factors driving this upward trajectory, including robust economic fundamentals, government initiatives, and increased investor confidence.
With private and sovereign wealth on the rise and increased infrastructural spending, opportunities for growth across asset classes in the UAE and wider GCC are promising. Dubai continues to lead the region’s property sector, supported by its reputation as a financial and business hub attracting global institutions seeking investment opportunities.
The residential, hospitality, and office segments remain top performers in the UAE, with an increasing focus on sustainability and tech innovations shaping the market. Green building practices and energy-efficient designs are gaining importance, while financial institutions are expanding lending offerings for green projects.
While luxury off-plan property launches have seen an uptick in Dubai, the demand for affordable housing options below AED 3 million is on the rise, providing opportunities for developers to meet this need. The residential market is expected to continue its positive momentum, with Dubai and Abu Dhabi projected to deliver thousands of new units in 2024.
Demand for office space remains strong in both cities, favoring landlords as rents continue to increase. Grade A offices are limited in supply, while flex offices are in demand due to changing work patterns and remote working opportunities. The industrial sector is also seeing growth, with the UAE leading in GCC and globally in logistics performance.
In the retail sector, shopping malls are evolving to include more services and amenities to align with technology trends, while homegrown concepts like F&B and convenience stores are thriving in community malls. The hospitality sector is driven by a growing calendar of events and increasing tourist volumes, making it a key driver of growth.
Overall, the outlook for the UAE’s real estate sector in 2024 is positive, with experts emphasizing the industry’s resilience and potential for sustained success amidst global challenges. The UAE’s attractiveness to regional and international investors remains strong, solidifying its position as a top choice for real estate investment.
