Dubai, United Arab Emirates – Building on the strong growth momentum and high levels of buyer demand experienced in 2023, the UAE’s real estate sector is expected to continue its upward trajectory in 2024 despite a softening global outlook, highlighted a panel of experts at JLL’s Navigating the Growth Spectrum: Exploring Strategies for Sustained Success event in Dubai. Robust economic fundamentals, government initiatives, and increased investor confidence are driving new opportunities for sustained growth across asset classes in the UAE’s rapidly evolving market, especially in the short and medium term, said the industry analysts.

With the rise of private and sovereign wealth as well as increased infrastructural spending, JLL also outlined promising prospects for the real estate sector in the wider GCC, a region less sensitive to the global challenges of inflation and hikes in interest rates. The positive sentiment and performance of various macroeconomic indicators reflect trust and resilience both in the UAE and GCC markets, even as Dubai continues its run as a dominant force in the region’s property sector, said the JLL experts.

The UAE’s position as a financial and business hub has strengthened demand across the major asset classes and global institutions are actively eyeing investment opportunities in the country. Buoyed by its high desirability index, residential, hospitality, and office remain the top-performing segments in the UAE. Commercial real estate represents a competitive landscape with supply-demand gaps for high-quality spaces. Core asset classes continue to generate interest in the UAE’s capital market and the aggressive pricing strategy pursued by asset managers witnessing prime office and hospitality yields about to break the 7% threshold.

An increased focus on sustainability and tech innovations are further reshaping the real estate landscape where green building practices and energy-efficient designs are gaining prominence and becoming a must-have. Financial institutions too have expanded their competitive lending offerings for green projects.

Although in the UAE, Dubai has experienced an uptick in luxury off-plan property launches, the residential segment most in demand is below AED 3 million, expanding the scope of opportunities for developers to meet the growing desire for affordable housing options.

James Allan, CEO, Middle East and Africa (MEA), JLL, said: “A robust and resilient real estate industry has established itself as a firm pillar of the UAE’s diversification agenda and is expected to deliver a strong performance in 2024 even under inflationary pressures. The positive outlook for growth and upward trends in the investment climate offer stability in a time of global uncertainty, reinforcing the UAE’s position as an attractive choice for regional and international real estate investors.”

During JLL’s Navigating the Growth Spectrum: Exploring Strategies for Sustained Success event, the stalwarts estimated that despite the annual increases in both value and volume of transactions in the residential segment, the pace of increase is likely to slow down in the year ahead. Even as luxury remains a niche segment, branded residences, wellness, and lifestyle oriented real estate projects enjoy solid growth alongside co-living spaces that deliver affordable, convenient, and inclusive living solutions for young and single professionals. Despite escalating land prices and construction costs, the positive momentum of the UAE’s residential market is expected to continue in 2024 with Dubai and Abu Dhabi anticipated to deliver approximately 34,000 units and 8,000 units, respectively.

In the office market, strong demand for office space was observed in both cities. The market remained firmly in favour of landlords, as rents continued to increase due to the limited availability of quality space and rising inquiries from occupiers. Despite a growing preference for quality over quantity, Grade A offices were limited in supply while changing work patterns and remote working opportunities led to a surge in demand for flex offices.

Strong demand for high-quality logistics and warehousing solutions is stimulating the industrial sector where the UAE holds a leadership position in GCC and is ranked 7th globally on the Logistics Performance Index. Government-led initiatives such as Operation 300 billion, UAE Industrial Strategy 2030, and Made in the UAE, for instance, are expanding the scope for manufacturing and logistics with 3PLs and e-commerce estimated to drive growth.

In retail, shopping malls are transforming inactive areas into vibrant hubs and introducing clinics, fitness facilities, and other services to align with technology and e-commerce trends while homegrown concepts including F&B and convenience are performing well in community malls. Luxury and new entrants are flocking to Dubai while Abu Dhabi establishes itself as a hub for family and cultural entertainment. Meanwhile, sustained growth in the hospitality sector is driven by a well-balanced calendar of events as increasing tourist volumes, for leisure and business, remain a key driver of this segment.      

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com

About JLL MEA

Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 1650 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Johannesburg and Nairobi. For further information, visit jll-mena.com

Media Contact:
Medha Sandrasagara
JLL MEA | +971 4 426 6999
Medha.Sandrasagara@jll.com

Nisha Celina | Atrayee Roy Choudhury
ASDA’A BCW | +9714 4507 600 
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