Recent reports predict prime residential real estate in the United Arab Emirates to yield between 6.25% and 7%. CBRE Research’s 2024 Market Outlook forecasts residential properties to yield 7% to 7.5%.
In offices, prime ones are expected to yield 6.5% to 7.25%, while grade A offices may yield 7% to 7.5%.
The report highlights $409 billion worth of real estate projects in the UAE, representing 24.4% of all GCC projects.
The UAE is the only market recording growth in both price and transaction volume, especially in Abu Dhabi.
In Dubai, while transaction volumes may decrease slightly, price growth in apartments and villas is expected to continue.
CBRE forecasts continued strong occupier activity in UAE offices, with prime and grade A assets outperforming due to supply scarcity.
Retail rents surged in Abu Dhabi and Dubai last year, with expectations of strong demand continuing. However, the lack of quality stock, particularly in Dubai, may moderate rental growth.