Real estate sector thrives with strong growth in the first half of 2024
The second half of 2024 is predicted to see continued robust demand and performance.
tracts registered fell by 8.4%.
In Abu Dhabi, the manufacturing industry continues to be the main source of o
- UAE, Dubai: The world’s foremost provider of commercial real estate, CBRE Middle East, has published its most recent version of the UAE Real Estate Market Review, covering the second quarter of 2024.
- With a 15.9% rise in rental registrations over the prior year, Abu Dhabi’s office sector leasing market held steady in the second quarter of the year.
- Additionally, rental rates increased: in the Prime, Grade A, and Grade B categories, they increased by 9.1%, 7.4%, and 14.5%, respectively.
- The second half of 2024 is predicted to see continued robust demand and performance.
- In Dubai, the occupier market saw a 38.4% increase in rental registrations in the second quarter of this year compared to the same period last year, when 95.3% of transactions involved less than 2,000 square feet of space.
- During this time, rental growth remained strong, with gains in the Prime, Grade A, Grade B, and Grade C segments of 4.7%, 19.9%, 20.9%, and 15.0% year over year.
- In the second quarter of 2024, there were 2,108 sales transactions in the residential market in Abu Dhabi, a 22.8% decrease from the same period the previous year.
- The average price of an apartment or a villa increased annually by 3.9% and 6.2%, respectively, as compared to Q2 2023.
- With 41,368 rental registrations in the second quarter of 2024, the rental market in Abu Dhabi recorded a 9.5% decline in overall rental registrations from the same period the year before.
- The residential market in Dubai is still performing very well; average prices increased by 21.3% over the previous year, up from a 20.1% increase just one month earlie
- The average price of an apartment has increased by 20.7%, while the average price of a villa has increased by 24.3%, supporting this growth.
Real Estate Meaning, Real Estate Business Real Estate Investment.
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Regarding supply, 12,249 units have been supplied in Dubai as of Q2 2024; Meydan One, Al Furjan, and Jumeirah Village Circle accounted for 44.4% of these units’ completion.
As of June 2024, there have been 73,618 residential sales registered in Dubai, making it the biggest on record for the first half of a year and representing a 27.6% year-over-year growth.
During the same time period, secondary market sales jumped by 8.2% while off-plan sales increased by 41.0%. For the foreseeable future, Dubai’s residential market is anticipated to continue performing well.
The UAE’s hospitality industry is still seeing high visitor numbers, which contributes to solid performance.
As of June 2024, the average national occupancy rate has increased by 1.7 percentage points year over year, with the majority of locations surpassing their occupancy levels from 2023.
The rising ADR levels in Abu Dhabi, Ras Al Khaimah, Dubai, Sharjah, Ajman, and Fujairah—which had growth rates of 12.3%, 10.7%, 4.6%, 3.9%, 1.7%, and 0.6%, respectively—were the main factor behind the UAE’s 5.8% gain in ADR during this time.
Consequently, over the same period, we have observed that the RevPARs at these locations have increased by 24.0%, 10.5%, 4.7%, 11.5%, 2.9%, and 15.0%, respectively.
Even though it was anticipated that performance would decline over the summer, the market kept exhibiting key performance indicators (KPIs) for the industry, led by significant upcoming events that should keep visitor numbers high.
It is predicted that the second half of the year will see notable development in important
In the retail sector, there were 17,509 retail rental registrations in Dubai as of the second quarter of this year, a 0.1% increase over the same period last year.
Renewals of rental agreements had a 4.4% increase over this time, whereas new registrations fell by 8.6%.
The second quarter of 2024 saw modest activity levels in Abu Dhabi’s retail industry, with 7,048 rental contracts registered overall—a 10.2% decrease from the same period the previous year.
During this time, the number of newly registered rental contracts increased by 13.8% year over year, while the number of renewed rental registrations decreased by 20.5%. During the second quarter of 2024, rental performance in both cities held steady.
The average retail rent in Dubai rose 6.0% year over year, while the average rent in Abu Dhabi grew by 3.6%. Additional rises in rental rates are anticipated going forward, given the current state of the market fundamentals.
Activity levels in the industrial and logistics sector of the United Arab Emirates in Q2 2024 remained quite low.
The overall number of rental registrations in Abu Dhabi decreased by 4.1% from the previous year. New registrations rose by 3.1% over this time, while the number of renewal con
occupation activity.
Labor prices and competitive power remain the primary drivers of demand in the capital. In Q2 2024, there were 2,394 rental registrations in Dubai, 2.5% more than the same period the year before.
A 2.3% increase in renewed rental contracts and a 3.0% increase in new registrations during the same period have supported this growth.
In Q2 2024, there were 2,394 rental registrations in Dubai, 2.5% more than the same period the year before.
A 2.3% increase in renewed rental contracts and a 3.0% increase in new registrations during the same period have supported this growth.
While average rentals in Dubai grew by 10.6% annually in Q2 2024, rents in Abu Dhabi’s industrial and logistics industry rose by 4.7% over the same period the previous year.
Performance in the second half of the year is anticipated to be driven by the fundamentals that underpin both markets.
Rents are predicted to climb further over the coming years, albeit not as quickly, as demand continues to exceed supply and prospective supply deliveries remain relatively limited.
New institutional-grade assets are also anticipated to reach previously unheard-of levels.
“The UAE’s real estate sector continues to showcase robust performance midway through 2024, with strong price, rental, and transactional activity levels continuing to defy trends seen in many key global markets,” says Timor Khan, Head of Research MENA in Dubai.
Though this is probably going to support price and rental growth into the second half of the year, we are also seeing that supply restrictions may now be beginning to impair activity levels across a range of sectors.
The current level of demand is causing developers to advance their development plans more and more in an effort to prevent potential activity in the medium and long term from being hampered by a shortage of stock.
Concerning CBRE Group, Inc.
Based on revenue for 2023, CBRE Group, Inc.
(NYSE:CBRE), a Fortune 500 and S&P 500 corporation with its headquarters located in Dallas, is the largest commercial real estate services and investment organization globally.
With over 130,000 workers, including those from Turner & Townsend, the corporation serves customers in over 100 nations.
Facilities, transaction and project management, property management, investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services, and development services are just a few of the integrated services that CBRE provides to a wide range of clients.
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