Dubai’s real estate market is poised for robust growth, with projections indicating the delivery of over 35,000 new residential units by the year-end, as per a recent study by JLL. This surge in housing supply is attributed to buoyant investor demand, driven by innovative product offerings, attractive payment options, and recent adjustments to the golden visa requirements.

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According to JLL’s UAE Real Estate Market Overview for Q1 2024, the first quarter witnessed the delivery of approximately 10,000 units in Dubai and 1,600 units in Abu Dhabi, underscoring substantial growth in the residential sector across the UAE, particularly in secondary locations.

Faraz Ahmed, research director at JLL Mena, highlighted a 20% increase in residential sales transactions in Dubai compared to the same period last year, with a similar trend observed in Abu Dhabi, where apartment sales outpaced villa and townhouse sales. Developers are strategically targeting secondary locations and properties within the Dh2 million price range to align with the Golden Visa eligibility criteria, amidst escalating land prices and construction costs.

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In the Dubai market, sale prices and rental rates surged by 21% annually, with apartment rentals experiencing a notable 22% increase, outperforming villa rentals at 14%. Abu Dhabi witnessed a 4.0% rise in rental rates and a 7.0% increase in sales prices, with apartment rentals registering a 5.0% growth rate compared to villas.

The hospitality sector also witnessed significant growth, with Dubai adding 2,000 new hotel keys in Q1 2024, bringing the total to 155,000 keys. Additionally, Abu Dhabi’s hotel supply remained stable at 32,500 keys, with expectations of 500 more keys added throughout the year.

Dubai’s Department of Tourism reported a noteworthy 18% increase in visitor numbers in January and February, with Western Europe, South Asia, and the GCC emerging as key source markets. This surge in tourism contributed to a 5.0% year-over-year increase in average daily rates (ADR) and revenue per available room (RevPAR).

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Abu Dhabi’s hospitality sector also exhibited strong performance, with an occupancy rate of 81% and notable growth in ADR and RevPAR.

The report emphasized the importance of experience-driven developments in the hospitality industry, with operators investing in enhancing their value propositions through partnerships with lifestyle groups, particularly within the F&B segment.

In summary, Dubai’s real estate market is poised for significant expansion, driven by investor confidence, while the hospitality sector continues to thrive, buoyed by robust tourism demand and strategic investments in experience-enhancing initiatives.

Tags: real estate, Dubai, housing delivery, investor demand, JLL study, residential market, Abu Dhabi, secondary locations, golden visa, rental rates, sale prices, hospitality sector, tourism, hotel supply, F&B segment, experience-driven developments.