Over 30,000 residential units to be delivered in the UAE by the end of the year: JLL
The first quarter of 2024 showcased robust growth in the UAE's real estate sector, driven by innovative product offerings, attractive payment options, and updates to the Golden Visa requirements, according to the UAE Real Estate Market Overview by JLL.
Dubai's residential market experienced a dynamic start to the year, with approximately 10,000 units completed, raising the total stock to 729,000 units. An additional 25,000 units are scheduled for delivery in the emirate over the next nine months, primarily in areas like MBR City, Business Bay, Jumeirah Village, and Dubai Land. Abu Dhabi witnessed a steady delivery of 1,600 units, with a further 6,000 units expected by year-end.
Faraz Ahmed, Research Director at JLL MENA, noted a 20% increase in residential sales transactions in Dubai and a 17% increase in Abu Dhabi compared to the same period last year. Developers are shifting focus to secondary locations and properties within the AED 2 million price range to meet Golden Visa eligibility criteria.
In Dubai, both sale prices and rentals registered around 21% annual increases, while Abu Dhabi saw sales prices rise by 7% and rental rates by 4%. The hospitality sector also thrived, with Dubai welcoming 3.67 million visitors in January and February, reflecting an 18% increase from the previous year. Abu Dhabi's hotel performance was similarly strong, with city-wide occupancy at 81% and significant growth in average daily rates.
In the office market, Dubai saw limited new supply, resulting in increased rental rates. Average Grade A rents in Dubai's CBD rose by 22%, while in Abu Dhabi, they increased by 14%. Landlords are prioritizing long-term occupancy and integrating flexible spaces to accommodate diverse office needs.
Community malls are driving the retail sector's performance, with local brands focusing on smaller concepts. Approximately 12,000 sq. m. of retail GLA was completed in Dubai, and around 17,000 sq. m. is expected in Abu Dhabi.
The industrial market saw strong demand, particularly in Jebel Ali Free Zone and Abu Dhabi's industrial areas, driven by growth in the non-oil sector and expanding e-commerce market. Warehouse rents in JAFZA increased by 26%, and in Abu Dhabi's industrial areas, they rose by 6-7%.
Overall, the UAE's real estate market in Q1 2024 demonstrated resilience and growth across residential, hospitality, office, retail, and industrial sectors, fueled by innovation, investor demand, and evolving market dynamics.
