Real Estate - United Arab Emirates

The Real Estate market market in the United Arab Emirates is anticipated to reach a staggering value of US$677.00bn by the year 2024.
Within this market, the Residential Real Estate segment reigns supreme, projected to hold a market volume of US$386.90bn in the same year.
Furthermore, a steady annual growth rate of 2.31% is expected between 2024 and 2029, resulting in a market volume of US$759.00bn by the latter year.
It is worth noting that, in a global comparison, United States is set to generate the highest value in the Real Estate market sector, with an estimated worth of US$132.0tn in 2024.
The United Arab Emirates real estate market is experiencing a surge in demand for luxury properties due to a growing number of high-net-worth individuals seeking investment opportunities.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in United Arab Emirates has been experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this positive trajectory. Customer preferences in the United Arab Emirates real estate market have shifted towards luxury properties and high-end developments. With a strong economy and a growing population, there is a demand for upscale living spaces and amenities. Expatriates and wealthy individuals from around the world are attracted to the luxurious lifestyle that the UAE has to offer. This has led to an increase in the construction of high-rise residential towers, luxury villas, and exclusive gated communities. Trends in the market reflect the growing demand for luxury properties. Developers are focusing on creating unique and extravagant projects to cater to the preferences of the affluent clientele. These projects often include state-of-the-art facilities such as private beaches, golf courses, and marinas. Additionally, there is a growing interest in sustainable and eco-friendly developments, with a focus on energy efficiency and green spaces. Local special circumstances also contribute to the development of the real estate market in the UAE. The country's strategic location between Europe, Asia, and Africa makes it a hub for international business and tourism. The UAE government has implemented policies to attract foreign investment, including offering incentives and tax breaks to developers. The introduction of long-term visas for investors and retirees has also encouraged individuals to invest in the real estate market. Underlying macroeconomic factors have played a significant role in the growth of the real estate market in the UAE. The country has a strong and stable economy, driven by sectors such as oil and gas, tourism, and finance. This has created a favorable environment for real estate investment, both domestically and internationally. Additionally, low interest rates and easy access to financing have made it easier for individuals to purchase properties. In conclusion, the Real Estate market in United Arab Emirates is experiencing growth and development due to customer preferences for luxury properties, trends in the market towards high-end developments, local special circumstances such as government incentives and strategic location, and underlying macroeconomic factors such as a strong economy and low interest rates. These factors have all contributed to the positive trajectory of the real estate market in the UAE.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - United Arab Emirates

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