UAE
Real Estate Market Review Q4 2022
The UAE's exceptional real estate market performance in 2022 defies global market trends.
Key Highlights:
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The UAE’s GDP is forecast to have grown by 7.9% in 2022, where its hydrocarbon sector grew by 11.4% and its non-hydrocarbon sector by 6.6% over the same period.
• Average prices in Abu Dhabi’s residential market increased by 1.5% in the year through December 2022; however, average rents dropped by 1.0%.
• In the year through December 2022, Dubai’s average residential prices increased by 9.5%, with average apartment and villa prices rising by 9.0% and 12.8%, respectively.
• In December 2022, 8,662 residential transactions were registered in Dubai; this is an increase of 63.0% compared to the year prior. Over this period, off-plan transactions increased by 92.5%, and secondary market transactions increased by 35.4%.
• In 2022, activity levels in Dubai’s residential market reached record highs, with the overall volume of transactions breaking the 2009 level of 81,182 transactions to reach a total of 90,881.
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Inflation forecasts stand at 5.6% for the year.
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UAE Hospitality Market
UAE Office Market
• In the fourth quarter of 2022, the total number of office Ejari contracts registered amounted to 35,076, up 56.2% from the same quarter a year earlier.
• Given a marked increase in demand, rental performance in Abu Dhabi’s occupier market has substantially improved, where in the year to Q4 2022, average Prime, Grade A, and Grade B rents have increased by 11.8%, 8.8%, and 13.2%, respectively.
• Year-on-year in 2022, the average occupancy rate increased by 5.4 percentage points.
• Over the same period, the ADR increased by 18.2%, and as a result, we have seen the average RevPAR increase by 27.8%.
UAE Retail & Industrial Market
• In the retail segment of the market, rental rates in both Abu Dhabi and Dubai have increased in 2022 by 5.6% and 51.5%, respectively.
• In the year to Q4 2022, average industrial rents in Abu Dhabi and Dubai increased by 4.7% and 17.4%, respectively.
Download the full CBRE report to learn more about the UAE real estate market.
Macroeconomics
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UAE Residential Market
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