CBRE stated in a release that this growth is attributed to the UAE's robust economic fundamentals, supportive government policies, and sustained increase in investor confidence, presenting new opportunities across various asset classes.
The UAE real estate market is considered a crucial pillar of the country's diversification agenda, and despite inflationary pressures, it is expected to demonstrate strong performance in 2024.
James Allan, CEO of CBRE Middle East and Africa, noted that positive growth prospects and improvements in the investment environment keep the UAE stable amidst global uncertainties, consolidating its position as the preferred destination for regional and international real estate investors.
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In the UAE, particularly in Dubai and Abu Dhabi, branded residences and health & lifestyle real estate projects are favored by investors. With increasing demand for affordable housing below AED 3 million, developers will have more opportunities in this segment. While the luxury car market is growing rapidly, affordable options remain the consumer's preference.
It is anticipated that in 2024, Dubai will see the delivery of 34,000 residential units, while Abu Dhabi will deliver 8,000 residential units.
In the office market, substantial rent growth is expected this year due to a shortage of Grade A office supply and sustained demand. Flexible office spaces are gaining traction with changing work patterns.
Expansion measures in manufacturing and logistics are stimulating growth in the industrial sector, leading to increased demand for logistics and warehousing solutions. Retail is undergoing transformation, with malls introducing new facilities to meet e-commerce demands. Luxury brands and the dining sector are performing well.
The release also noted that Dubai continues to attract luxury brands and newcomers, while Abu Dhabi is gradually becoming a hub for family entertainment and culture. A balanced events calendar and growing tourist numbers will drive hotel development. Overall, the UAE real estate market is poised to demonstrate strong growth momentum in 2024, offering investors abundant opportunities and a stable investment environment.
