Dubai Realty Set to Deliver 34,000 Units in 2024 Despite Global Softening
Dubai, UAE – According to experts at a recent panel discussion, the UAE’s real estate sector is poised for continued growth in 2024, with Dubai and Abu Dhabi expected to deliver approximately 34,000 and 8,000 units, respectively. The sector’s resilience and positive outlook stem from robust economic fundamentals, government initiatives, and increased investor confidence.
At JLL’s “Navigating the growth spectrum: Exploring Strategies for sustained success” event, panellists highlighted the real estate sector’s pivotal role in the UAE’s diversification agenda. Despite global uncertainties, the UAE remains attractive for regional and international real estate investors, offering stability and growth opportunities.
James Allan, CEO of JLL MEA, stated, “The positive outlook for growth and upward trends in the investment climate offer stability in a time of global uncertainty, reinforcing the UAE’s position as an attractive choice for regional and international real estate investors.”
While the residential segment continues to see annual increases in both value and volume of transactions, the pace of growth is expected to moderate. Luxury remains a niche segment, but wellness, lifestyle-oriented projects, and co-living spaces are gaining popularity among young professionals.
Property Monitor forecasts that Dubai’s residential market will see more than 40,000 units handover in 2024, driven by the launch of close to 100,000 new units in 2023. Despite escalating land prices and construction costs, the residential market is expected to remain buoyant.
In the wider GCC region, increased infrastructural spending and the rise of private and sovereign wealth offer brighter prospects for the real estate sector. Dubai continues to lead the region’s property sector, which is supported by positive sentiment and various macroeconomic indicators.
The UAE’s financial and business hub position has attracted global institutions seeking investment opportunities across asset classes. Residential, hospitality, and office segments remain top performers, with commercial real estate also showing promise.
Sustainability and technological innovations are reshaping the real estate landscape, with green building practices and energy-efficient designs gaining prominence. Financial institutions are expanding their lending offerings for green projects, reflecting the industry’s shift towards sustainability.
Dubai’s luxury off-plan property launches have seen an uptick, particularly in the below Dh3 million segment, catering to the growing demand for affordable housing. In the office market, strong demand for high-quality office space has increased rent, driven by limited availability and rising inquiries from occupiers.
The industrial sector is also experiencing growth, driven by strong demand for logistics and warehousing solutions. Government-led initiatives such as Operation 300 Billion and UAE Industrial Strategy 2030 are expanding the scope for manufacturing and logistics, with e-commerce expected to drive further growth.