The UAE’s real estate sector continues to record strong growth despite global headwinds, says CBRE
- Date: 10-Nov-2022
- Source: Zawya
- Sector:Real Estate
- Country:UAE
The UAE’s real estate sector continues to record strong growth despite global headwinds, says CBRE
Dubai – Activity levels across the UAE’s real estate sectors have continued to record strong performance in Q3 despite a backdrop marked by rising global headwinds.
Looking at the UAE’s office sector figures, as demand has increased market-wide, we have seen performance in Abu Dhabi’s office rents also improve, with average Prime, Grade A and Grade B rents recording growth rates of 1.4%, 2.9% and 5.5% respectively in the year to Q3 2022. In Dubai, the total number of commercial Ejari contracts (lease contracts) registered in Q3 2022 increased by 47.6% year-on-year. As a result, average rents in all segments of Dubai’s office market have recorded rental growth, with Prime, Grade A, Grade B and Grade C rents increasing by 16.5%, 10.5%, 9.9% and 10.2% respectively. Given the lack of availability of stock and heightened demand levels, we expect rental growth to remain relatively strong over the remainder of the year, with the Prime and Grade A segments of the market expected to outperform.
In the residential sector, average property prices in Abu Dhabi increased by 3.2% in the year to September 2022, with average apartment prices rising by 3.3% and average villa prices increasing by 2.7%. Rents in the capital’s residential