The UAE’s real estate sector remains strong in the first half of 2023, despite some signs of moderation, says CBRE

The UAE’s real estate sector remains strong in the first half of 2023, despite some signs of moderation, says CBRE

Dubai – The UAE’s real estate market maintained its strong momentum into the second quarter of the year, recording high activity levels across sectors, despite some signs of moderation in few market segments.

Looking at the UAE’s office sector figures, rental performance in Abu Dhabi’s occupier market showed substantial improvement with average Prime, Grade A and Grade B rents recording growth rates of 11.0%, 5.7%, and 7.8% respectively in the year to Q2 2023. Given the scarcity of available supply and the lack of upcoming new stock, we expect to see strong performance continue in the second half of 2023. In Dubai, the total number of new Ejari (lease) registrations in Q1 reached 20,953, up 58.5% from the previous year. The average occupancy rate reached 92.7% as of Q2 2023, up from 84.8% a year earlier on the back of increased demand and limited availability of quality supply. These elevated occupancy rates continue to drive the increase in average rents in Dubai’s office market, where in Q2 2023, average Prime, Grade A, Grade B, and Grade C rents have grown by 17.2%, 11.0%, 16.4%, and 30.0%, respectively. Given the lack of available quality stock and the very limited amount of imminent