WAM News Agency, Dubai, February 28, 2024 – Despite expectations of a decline in global market demand, the UAE’s real estate market demonstrated strong growth momentum and increasing purchasing demand throughout 2023, with a positive growth trend projected to continue into 2024.
At the “Capitalizing on Growth Trends” real estate seminar held in Dubai, real estate experts from JLL highlighted that thanks to a solid economic foundation, proactive government policies, and increased investor confidence, new opportunities have been opened for the rapid development of the UAE’s market and the sustained growth of various assets, especially in the short to medium term.
The seminar also emphasized the significant potential of the Gulf Cooperation Council (GCC) region’s real estate market, which is better positioned to withstand challenges such as inflation and interest rate increases, due to the growth of private and governmental wealth and an expansion in infrastructure investment, compared to other regions worldwide.
JLL analysts stated that the confidence and resilience shown by the UAE and GCC markets are reflected in the positive trends of various macroeconomic indicators, with Dubai remaining the leader in the region’s real estate market.
As a leading global financial and business hub, the UAE has driven increased demand for major asset types, with global investors actively seeking investment opportunities in the UAE. The attractiveness of residential, hotel, and office sectors is significant, marking the UAE’s best-performing industries, while the commercial real estate market faces fierce competition with a high demand for quality properties.
James Allan, JLL’s CEO for the Middle East and Africa region, remarked, “A resilient and stable real estate market has become a crucial support for the UAE’s economic diversification strategy. Despite inflationary pressures, the market is expected to maintain strong performance in 2024. Faced with global uncertainties, the positive growth outlook and stable investment environment have enhanced the UAE’s position in attracting regional and international real estate investors.”
During the seminar, experts also discussed the situation where, despite the annual increase in transaction volumes and amounts in the residential market, the growth rate might slow down next year. Although the luxury residential market remains a niche, the rapid growth of high-end residential, health and wellness-focused development projects, and affordable, comfortable, and inclusive co-living spaces for young professionals and singles is evident. The positive momentum of the UAE’s residential market is expected to continue into 2024, with Dubai and Abu Dhabi performing particularly well, despite rising land and construction costs.
