The UAE’s Real Estate Sector Poised for an Extraordinary Year: CBRE’s Projections and Insights

The United Arab Emirates (UAE) is gearing up for an exceptional year in its real estate sector, with investor interest in mid-range and premium properties hitting record highs. According to CBRE, a leading real estate consultancy, the first half of the year witnessed a remarkable surge in demand in both Abu Dhabi and Dubai.

In Abu Dhabi, real estate transactions saw a staggering 94.1 percent increase year-on-year in the first half of 2023, with off-plan transactions experiencing a massive 160.4 percent surge. This growth has also translated into a rapid increase in average villa prices, indicating a strong market performance.

Similarly, Dubai experienced a 43.3 percent rise in real estate transactions in the same period, leading to an unexpected escalation in property prices. While the rental market in Dubai has seen a moderation in growth, Abu Dhabi has remained steady according to CBRE’s projections.

Looking ahead, CBRE predicts a strong second half of the year for both real estate markets in the UAE. Taimur Khan, Head of Research EMEA at CBRE, expects the total number of transactions to surpass last year’s figures, attributing this growth to increased interest from international investors in both the mid-market and prime real estate segments.

Overall, the UAE’s real estate sector is poised for continued growth and investment opportunities, making it an attractive destination for investors from around the world.