Strong demand and lack of supply will continue to drive growth for the UAE’s real estate market

Strong demand and lack of supply will continue to drive growth for the UAE’s real estate market

Dubai: CBRE anticipates that a strong demand and a lack of supply in key sectors will continue to support a positive outlook for the UAE’s real estate market in 2023, according to the company’s 2023 UAE Real Estate Market Outlook Mid-Year Review.

Global economic headwinds, led by tighter monetary policy regimes and persistently high inflation in major economies, have led to downgrades in both global and the UAE’s GDP growth forecasts. At the start of the year, the UAE’s economy was expected to grow by 3.5% and the latest forecast now puts this number at 2.2%. However, the downgrade has been down to the expected contraction in the UAE’s hydrocarbon sector, which is forecast to contract by 3.3% (compared to the 2.7% growth expected in January 2023). The non-hydrocarbon sector, on the other hand, is now estimated to register 4.2% growth in 2023, up from the previously estimated growth of 3.9%.

Despite a weaker than expected hydrocarbon sector and even amidst what we now expect will be a prolonged rates cycle, which is likely to impact demand, CBRE continues to maintain many of its forecasts made in early 2023.

Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments: “In large