Dubai Housing Delivery Projected to Reach 35,000 Units by 2024

According to a recent study by JLL, the enduring robustness of Dubai's residential market is poised to see the delivery of over 35,000 new units by the year's end. Investor interest is being fuelled by innovative product offerings, attractive payment plans, and recent adjustments to the golden visa criteria.

JLL's UAE Real Estate Market Overview for Q1 2024 reveals that approximately 10,000 units were completed in Dubai and 1,600 in Abu Dhabi during the first quarter, signalling substantial growth in the UAE's residential sector as developers pivot towards secondary locales.

The Dubai market kicked off the year strongly, witnessing the completion of around 10,000 units in the first quarter alone, elevating the total stock to 729,000 units. Over the subsequent nine months, an additional 25,000 units are slated for delivery in Dubai, primarily comprising apartments situated in prominent areas like MBR City, Business Bay, Jumeirah Village, and Dubai Land.

In Abu Dhabi, a steady delivery of 1,600 units was observed, with a projected addition of 6,000 units by year's end, according to the report.

Faraz Ahmed, Research Director at JLL Mena, notes a 20% increase in residential sales transactions in Dubai compared to the previous year, and a 17% uptick in Abu Dhabi, with apartments outselling villas and townhouses. He highlights the shifting developer focus towards secondary locations and properties within the Dh2 million price range to facilitate eligibility for the Golden Visa.

Sale prices and rental rates in the Dubai market have surged by 21% annually, with apartment rentals experiencing a significant yearly increase of 22%, surpassing the growth rate of villa rentals at 14%. Meanwhile, demand for villas remains robust, evident in the notable year-over-year increase of 22% in sale prices. In Abu Dhabi, rental rates increased by an average of 4% , while sales prices rose by an average of 7.0%, with apartment rentals outpacing villa rentals by 5.0%.

The hospitality sector is witnessing growth, driven by a thriving tourism industry, particularly in Dubai, which saw the addition of 2,000 new hotel keys in the first quarter, bringing the total to 155,000. Throughout the year, an additional 5,000 keys are expected to be added, primarily in 4- and 5-star properties. Abu Dhabi's hotel supply remained steady at 32,500 keys, with an anticipated addition of 500 keys by year's end.

Dubai's Department of Tourism reported a significant 18% increase in visitors in January and February, with Western Europe, South Asia, and the GCC emerging as the largest source markets. This positive tourism trend contributed to a 5.0% year-over-year increase in average daily rates (ADR) to $226 and a corresponding 5.0% increase in revenue per available room (RevPar) to $185.

Abu Dhabi's hotel performance also saw growth, with occupancy across the city reaching 81% in YT March 2024, accompanied by an 8.0% year-over-year increase in ADR to $161 and a 17% increase in RevPAR to $130, highlighting significant progress compared to the same period last year.