Sign in
JLL is the latest to report resilience in the UAE’s real estate market in 3Q 2024, with strong activity across all sectors, according to a press release referencing JLL’s latest UAE Market Dynamics report. Investor confidence in Dubai and Abu Dhabi remained steady, driven by government policies and demand for high-quality developments.
RESIDENTIAL-
Off-plan sales drive Dubai’s residential market: Off-plan property sales in Dubai rose by 50.3% y-o-y, contributing to a 35.6% increase in total residential transactions y-o-y, mostly due to limited secondary offerings. Apartment rents climbed 19.1%, while villa rents increased by 12.5%, reflecting high demand in well-serviced areas and pushing more tenants to renew existing contracts instead of finding new places.
Rents are expected to moderate slightly due to the increase of contract renewals and increased supply, the report said.
In Abu Dhabi, secondary market sales grew by 44.3%, but off-plan sales fell sharply by 67.2%, resulting in a 40.8% decline in overall transactions. Rents in Abu Dhabi also rose, with apartment rents up 9.3% and villa rents up 3.9%. Prime properties in both cities continued to attract buyers, sustaining upward price trends.
HOSPITALITY-
Tourism supports hospitality growth: Abu Dhabi’s hospitality sector saw a 23.6% YTD increase in revenue per available room (RevPAR), fueled by rising tourism and government support. Meanwhile, Dubai’s hospitality market experienced a 2.7% increase in RevPAR, supported by steady tourism, and existing hotels adjusting rates to stay competitive.
COMMERCIAL-
Demand drives up office space rents: Limited availability of Grade A office space pushed rents up in both emirates. In Abu Dhabi, vacancy rates dropped to 4.1%, contributing to a 10.8% y-o-y increase in average rents. Dubai’s vacancy rate fell to 5.2%, with prime rents rising 14.7% y-o-y. Occupiers faced tight conditions, with many renewing leases as expansion options became scarce.
RETAIL + INDUSTRIAL-
Retail expansion: Dubai’s retail sector thrived, with a 14.9% y-o-y rent increase for super-regional malls. In Abu Dhabi, community malls led rental growth at 9% y-o-y.
Industrial market: Dubai’s industrial and logistics market posted strong performance in 3Q, with rental registrations up 7.9% y-o-y and rents rising 12.9% YTD through September. Abu Dhabi also saw healthy demand, especially for premium assets in key areas like Kezad, which boasts a 92% occupancy rate. Rental registrations in the emirate rose 32.9%, while warehouse rents increased 8.6% y-o-y.
