Investor Demand and Market Strength Driving Growth
Dubai’s housing market is poised for significant expansion, with over 35,000 new units slated for delivery by the year’s end, reveals a JLL study. Investor enthusiasm, fueled by innovative product offerings, attractive payment options, and recent adjustments to golden visa requirements, is propelling this growth.
During Q1 2024, Dubai saw the completion of approximately 10,000 units, with an additional 25,000 units expected in the next nine months, primarily in key areas like MBR City, Business Bay, Jumeirah Village, and Dubai Land. Similarly, Abu Dhabi witnessed a steady delivery of 1,600 units, with 6,000 more anticipated by year-end.
Faraz Ahmed, JLL Mena’s research director, notes a 20% increase in Dubai’s residential sales transactions compared to last year, driven by a focus on secondary locations and properties within the Dh2 million price range, aligning with Golden Visa eligibility criteria.
In both Dubai and Abu Dhabi, sale prices and rental rates have surged, with Dubai’s apartment rentals notably soaring by 22%. Meanwhile, Abu Dhabi’s hospitality sector is thriving, with 2,000 new hotel keys added in Q1 2024, contributing to a total of 155,000 keys. Abu Dhabi’s occupancy rates reached 81% in March 2024, with a notable increase in average daily rates (ADR) and revenue per available room (RevPar).
The competitive landscape in the hospitality sector is evolving, with operators investing in experience-driven developments and partnerships to enhance their value propositions, particularly in the lucrative F&B segment.