It is anticipated that Dubai will deliver around 34,000 units, and Abu Dhabi will finish about 8,000 units. Strong economic foundations, government efforts, and rising confidence among investors all contribute to this optimistic forecast. Experts discussed the possibility for continuous development across a range of different asset classes in the rapidly evolving UAE market at a panel discussion titled “Navigating the Growth Spectrum: Exploring Strategies for Sustained Success,” which was organized by JLL. It was highlighted that the real estate industry, in particular, is anticipated to continue growing and to build on the robust demand from buyers that was observed in 2023.
According to James Allan, CEO of JLL’s Middle East and Africa (MEA) division, the UAE’s diversification plan now includes the real estate industry as a crucial element because of its strength and durability. Despite difficulties from inflation, he believes that the business will continue to do well in 2024. According to Allan, the UAE’s favorable investment climate and upbeat outlook offer stability in the face of worldwide volatility, which strengthens the country’s appeal as a destination for both domestic and foreign real estate traders.
Although transaction volume and value have been rising annually, experts believe that the residential real estate industry will see a drop in growth in the following year. Since the market for luxury housing is still niche, branded homes, wellness-oriented communities, and lifestyle initiatives are becoming more and more well-liked. Co-living places are becoming more and more well-liked as accessible, practical, and inclusive housing solutions.
The good trend in the UAE’s residential sector is expected to continue in 2024, despite the difficulties created by growing land prices and building expenses. Whereas Abu Dhabi expects to finish about 8,000 units, Dubai hopes to deliver about 34,000.
After around 100,000 new units were introduced in 2023, Property Monitor, a well-known supplier of real estate technology and market analytics, predicts that over 40,000 new units will be completed in Dubai’s booming residential market in 2024. According to a new Property Monitor survey, the housing sector—which had its biggest annual price gain of 16.4% in more than a decade last year—will keep adding to the strong supply pipeline anticipated in the upcoming years.
The JLL panel event speakers expressed confidence about the future of the real estate industry in the global Gulf Cooperation Council (GCC) due to the rise in both sovereign and private investments as well as more infrastructure expenditure. Global issues like rising interest rates and inflation have less of an impact on this region- declared the JLL experts.
The UAE’s booming reputation as a financial and business hub is attracting a surge of investment interest from international players. This is driving demand across all types of properties, with residential, hotels, and offices leading the pack. The UAE’s attractiveness is a major factor in this growth. However, there’s a shortage of high-quality commercial spaces, creating a competitive market for tenants. As a result of aggressive management strategies, prime office and hotel properties are expected to see returns exceeding 7%, making them particularly appealing choices for investors in the UAE’s capital markets.
The real estate industry is changing, with technology developments and sustainability taking center stage. Energy-efficient designs and green building methods are evolving more famous, which is drawing more funding for environmentally friendly initiatives.
Dubai luxury market is witnessing a surge in off-plan property launches. Developers can now meet the rising demand for inexpensive housing alternatives as the sweet spot for residential houses appears to be below Dh3 million.
The need for office space has significantly increased in both cities. Rents are rising, but landlords are still in a good market position since there is a shortage of premium office space and a rise in demand from prospective tenants. Even while premium office spaces are preferred, Grade A solutions are still hard to come by. In addition, the need for flexible office solutions has increased due to changing work habits and the development of remote work.
The UAE’s industrial sector is booming as a result of the increased need for top-notch storage and logistics services. According to the Logistics Performance Index, this puts the UAE in the top 10 internationally and establishes it as a leader in the GCC. In addition, government programs like Made in the UAE, the UAE Industrial Strategy 2030, and Operation 300 billion are creating development prospects in the logistics and manufacturing industries. Experts in the field believe that the e-commerce industry and third-party logistics providers (3PLs) will be the main drivers of this ongoing development.
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