The UAE’s real estate sector is projected to maintain its upward trajectory in 2024, despite a subdued global economic outlook. This positive forecast is attributed to several factors, including robust economic fundamentals, government initiatives, and growing investor confidence. These factors are creating new opportunities across various asset classes in the short to medium term, as highlighted by JLL at their recent event, “Navigating the Growth Spectrum: Exploring Strategies for Sustained Success.”
Dubai Retains its Allure for Luxury and Newcomers, While Abu Dhabi Carves a Niche in Family Entertainment and Culture
The two largest emirates within the UAE, Dubai and Abu Dhabi, are witnessing distinct market developments. Dubai remains a magnet for luxury brands and new market entrants, while Abu Dhabi is strategically positioning itself as a family entertainment and cultural hub. This diversification strengthens the overall appeal of the UAE real estate sector, catering to a broader range of investors and residents.
Sustained Growth and Investment Opportunities Across Diverse Sectors
The UAE’s real estate sector continues to demonstrate resilience and act as a cornerstone of the nation’s economic diversification strategy. Experts anticipate a strong performance in 2024, even amidst inflationary pressures. This positive outlook, coupled with an upward trend in investor sentiment, fosters stability within a global environment marked by uncertainty, solidifying the UAE’s position as a prime choice for regional and international investors.
Residential Market: Balancing Luxury Appeal with Affordability
While the launch of luxury properties has shown an increase, there remains a significant demand for affordable housing options, particularly in the segment below AED 3 million. This presents developers with an opportunity to cater to this growing segment of the market. The residential sector is projected to deliver approximately 34,000 units in Dubai and 8,000 units in Abu Dhabi by the end of 2024.
Thriving Office and Industrial Sectors
The office segment has witnessed a surge in demand, driven by limited supply of Grade A office space and a rise in inquiries. Flexible workspace solutions are gaining traction in response to evolving work patterns. The industrial sector is experiencing positive momentum due to initiatives aimed at expanding manufacturing and logistics capabilities. This has resulted in strong demand for logistics and warehousing solutions.
Retail Transformation: Embracing E-commerce and New Experiences
The retail landscape is undergoing a transformation, with shopping malls introducing new amenities and aligning their strategies with the growing trend of e-commerce. This adaptation, coupled with the continued success of luxury brands and F&B concepts, ensures the continued vibrancy of the retail sector.
Hospitality Sector: Leveraging Balanced Events and Rising Visitor Numbers
The hospitality sector is expected to witness further growth, fueled by a well-balanced calendar of events and an anticipated rise in visitor numbers. This growth presents promising opportunities for investors in the hospitality segment.
Publish Mar 03, 2024
Source: https://www.arabianbusiness.com/industries/real-estate/uae-real-estate-dubai-abu-dhabi-property-markets-to-keep-rising-in-2024-amid-global-economic-slowdown
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