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UAE’s real estate market witnesses strong growth in Q2 2022
Due to the limited availability of quality stocks, the real estate market will continue to surmount, according to CBRE report
The UAE’s real estate sector continues to see a hot market even in Q2 of 2022. According to CBRE’s UAE Real Estate Market Review Q2 2022 report, Dubai’s office market has witnessed soaring rental growth for the first time after 2016 Q1.
Dubai-based commercial Ejari contracts swelled by 28.1% on a year-on-year basis. Although average Prime and Grade A rents in Abu Dhabi plummeted by 6.9% and 1.1%, respectively, average rents for the Grade B segment swelled by 4.5%.
In Q2, all Prime Grade A, Grade B, and Grade C rents for the UAE real estate sector increased by 7%, 7.9%, 3.2%, and 3%, respectively. Due to the limited availability of quality stocks, according to the report, the real estate market will continue to surmount.
Retail footfall exceeded in both Abu Dabhi and Dubai when compared to the pre-pandemic era by 13% and 12.3%, respectively. In Q2, over 6,500 new retail Ejari contracts were registered.
The average retail rent in Dubai exceeded by 22%, while it remained flat for Abu Dhabi.
Speaking about the residential sector, Abu Dhabi’s property prices saw a rise of 2.2% in the year to June 2022, while it soared by 10% for Dubai. Over this period, a total of 39,269 transactions were recorded, the highest since 2009.
The hospitality industry showed a significant improvement in 2022. As of June 2022, the average occupancy rate soared by 10.3% on a year-on-year basis. Revenue per available room across UAE stands at 16.9%, which is up when compared to 2019.
However, the report predicted a steep decline in performance than usual during this summer season. Nevertheless, local events are likely to boost performance in the months ahead.
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