The UAE’s exceptional real estate market performance in 2022 defies global market trends, says CBRE

The UAE’s exceptional real estate market performance in 2022 defies global market trends, says CBRE

Dubai – The UAE’s real estate sectors continued to record strong activity levels in the last quarter of 2022, concluding what has been a standout year for the UAE market despite global economic headwinds and uncertainty.

Looking at the UAE’s office sector figures, given a marked increase in demand, rental performance in Abu Dhabi’s occupier market has substantially improved, with average Prime, Grade A and Grade B rents recording growth rates of 11.8%, 8.8%, and 13.2% respectively in the year to Q4 2022. In Dubai, we have seen a significant increase in the total number of new Ejari (lease) registrations, which reached 71,325, up 71.3% from 2021. This increased level of occupier demand has meant that we have seen average occupancy rates reach 88.0% as at Q4 2022, up from 78.9% a year earlier. This increase in take-up, paired with limited stock availability, has underpinned growth in rental rates. In the year to Q4 2022, average Prime, Grade A, Grade B and Grade C office rents in Dubai increased by 25.2%, 12.1%, 14.0%, and 22.0%, respectively. Occupier activity has originated from a range of sectors during the year and Free Zones such as DIFC, DMCC and TECOM have captured a significant