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UAE Real Estate Market Review Q3 2024
The UAE continues to benefit from solid underlying macro fundamentals, specifically from the non-oil sectors, supporting continued growth across the country's buoyant real estate market.
October 22, 2024 14 Minute Read
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Key Takeaways:
- The UAE economy is set to grow further in 2025, with GDP forecast to rise 5.0% on the back of continued non-oil strength, sustaining growth in real estate markets.
- The UAE office market continues to see strong occupier demand, but a lack of available good quality supply for immediate and short-term occupation remains a key challenge for tenants, in what is an increasingly landlord friendly market.
- Dubai’s residential sector continues to hit new highs with record transaction volumes through Q3, driving further price growth. The off-plan market in particular has been buoyant, accounting for an increasingly large share of the overall sales value.
- Abu Dhabi’s residential market has seen demand for ready residential units increase notably, but there was a slowdown in off-plan sales volumes during the quarter, partly due to a lag in registration timings.
- Retail performance across the Emirate remained positive through Q3, driving rents higher by 3% and 8% respectively in Dubai and Abu Dhabi. This was supported by sustained demand from existing and new to market tenants, but lack of immediately occupiable retail space is constraining leasing activity.
- The UAE’s tourism and hospitality markets continue to benefit from rising visitor numbers across Dubai and Abu Dhabi, driving higher average room rates and supporting occupancy growth across most key markets.
- Demand for industrial facilities continues to rise, leading to widespread rental growth of the past 12 months, and a rise in speculative development starts.
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