Executive Summary
The record growth witnessed in the UAE real estate market in 2023 is expected to continue in 2024, albeit with a slight moderation supported by steady economic growth and strong demand. The residential sector recorded strong growth driven by demand due to the flight-to-quality trend. Similarly, the retail sector experienced stable growth owing to higher demand from international players and a supply-demand mismatch, especially for high quality assets. With the increasing attraction of Dubai as an international travel destination, the hospitality sector has performed well, supported by the increase in tourist footfalls in the UAE, as indicated by growth in occupancy rates and average number of flights.
Based on assessment of various macroeconomic factors that would impact UAE property market, such as non-oil sector GDP growth, fiscal surplus and investments, the real estate sector in UAE is expected to accelerate at a stable pace in the second half of 2024.
