The UAE real estate market showed remarkable resilience in the third quarter of 2024, defying global economic challenges and maintaining robust activity across all sectors, according to a recent report.
JLL’s latest UAE Market Dynamics report highlighted a significant surge in transaction volumes for off-plan properties, which recorded a 50.3 per cent year-on-year growth in Q3. This surge was a key driver for the upward trend in Dubai’s residential market, where sales transactions increased by 35.6 per cent year-to-date. Meanwhile, Abu Dhabi’s residential market experienced a 44.3 per cent rise in secondary market sales in Q3, with apartment and villa prices rising by 8.5 per cent and 8.1 per cent, respectively.
In Dubai, 7,400 residential units were delivered in Q3, with an additional 13,500 units expected in Q4. Rent increases for apartments (19.1 per cent) and villas (12.5 per cent) indicate strong demand for quality accommodation in well-serviced communities. As demand continues to outpace supply, lease renewals rose by 14.1 per cent, accounting for 62.0 per cent of rental registrations.
Abu Dhabi’s hospitality market is also performing strongly, driven by a surge in visitor numbers. From January to May 2024, the capital’s hotels welcomed 2.4 million guests, particularly at key destinations like Yas and Saadiyat Islands. The hospitality sector in Dubai continues to trend higher, with a 2.7 per cent year-on-year increase in RevPAR for YTD September, driven by rising tourism.
The commercial sector in Abu Dhabi saw a 10.8 per cent year-on-year increase in average rents for Prime and Grade A assets in Q3 2024. Rental registrations surged by 44.4 per cent, fueled by a 65.9 per cent rise in new registrations and a 7.7 per cent increase in renewals. In Dubai, limited availability of Grade A office space is pushing rents higher, particularly within the CBD where vacancy rates dropped to 5.2 per cent.
Dubai’s retail sector performed strongly in Q3, driven by tourism and population growth. This set the stage for continued growth of prime and Grade A retail space in Q4. High demand for retail space drove a 14.9 per cent year-on-year increase in rents for super-regional malls. In Abu Dhabi, the retail market is defined by strong demand and limited quality stock, with F&B remaining dominant.
Dubai’s industrial and logistics market saw buoyant Q3 leasing activity, with rental registrations up 7.9 per cent year-on-year and rents up 12.9 per cent YTD September. Abu Dhabi’s industrial and logistics market is experiencing robust demand, particularly for high-quality assets in established locations like KEZAD.
Taimur Khan, Head of Research MEA at JLL, noted: “The UAE real estate market demonstrates remarkable resilience, achieving robust growth across all sectors despite a challenging global outlook. Investor confidence remains strong in both Dubai and Abu Dhabi, and this upward trajectory is expected to continue, driven by strategic government initiatives and the ongoing development of world-class destinations.”
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