Report Overview

The government's significant investments in transportation networks, logistics, and distribution and development of sustainable and smart homes are expected to boost the growth of UAE Real Estate Market during the forecast period between 2024 and 2030.

UAE Real Estate Market - Industry Trends & Forecast Report, 2030

The UAE Real Estate Market size was estimated to be worth USD 704.25 billion in 2023. During the forecast period between 2024 and 2030, the UAE Real Estate Market size is projected to grow at a CAGR of 7.04%, reaching a value of USD 1,082.51 billion by 2030. Major growth factors for the UAE Real Estate Market include rising housing demand owing to the increasing population and the expanding construction of residential and commercial spaces. In addition, the high purchasing power of UAE consumers also influences the growth of the UAE Real Estate Market.

Real Estate – Overview

Real estate is the land plus any improvements, whether natural or man-made, permanently affixed to the property, such as homes. It is suitable for commercial, industrial, and domestic applications. The five primary categories of real estate are raw land, commercial, industrial, residential, and special use. Real estate professionals, such as realtors or real estate agents, frequently assist in the purchasing, selling, and leasing properties within the real estate market. These experts guide people and organizations through the intricacies of the real estate transaction process.

UAE Real Estate Market

Growth Drivers

Increasing Foreign Direct Investments

The UAE real estate market is attracting foreign direct investment (FDI), which is emerging as the major driving factor for market growth. According to the data by the Abu Dhabi Real Estate Centre (ADREC), the UAE's capital, Abu Dhabi, alone attracted USD 493 million in FDI in the real estate sector in the first quarter of 2024. The major investments came from India, China, Jordan, Canada, and Russia. The rising demand for residential as well as commercial spaces, such as office property, is witnessing lucrative demand in the market, which is anticipated to drive the UAE Real Estate Market during the forecast period.

Challenges

High Capital Investments

A significant drawback of real estate investing is the substantial initial investment. To begin the business, customers and industry participants must supply funds for down payments, EMIs, insurance, property taxes, stamp duty, and other expenses. The high cost of transactions makes it difficult to identify buyers and sellers quickly, which limits the expansion of the UAE Real Estate Market.

UAE Real Estate Market

Segmental Coverage

UAE Real Estate Market – By Property Type

Based on property type, the UAE Real Estate Market is segmented into Residential, Commercial, and others. The residential segment is further divided into apartments, condominiums, villas, and landed houses. The commercial segment is further segmented into office spaces, retail outlets, and industrial real estate. The other property types segment includes industrial, hospitality, and others. The residential segment holds the largest share of the UAE Real Estate Market. The segment's growth is mainly attributed to rising housing demand, particularly among millennials. However, the commercial segment also covers a substantial market share owing to the increase in the tourism sector.

UAE Real Estate Market – By Service

Based on service, the UAE Real Estate Market is segmented into property management, valuation services, and other services (advisory services and leasing). The property management segment dominates the UAE Real Estate Market. They serve as liaisons between the landlord and the tenant and take care of several duties, including bookkeeping, tax preparation, upkeep of the property, legal compliance, and tenant screening. The growing demand for housing in the country is driving market expansion, necessitating the need for property management to oversee these operations.

Competitive Landscape

Major players operating in the UAE Real Estate Market include Emaar Properties, Nakheel, Dubai Holding Real Estate (Meraas/Dubai Properties), Sobha Group, Nshama, DAMAC Properties, Al Futtaim Group Real Estate, Azizi Developments, Ellington Properties, and Danube Properties.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2024 – Vision Developments, a building construction company based in Dubai, launched two new projects, Karma and Platinum, in Liwan to boost the UAE Real Estate Market.

Scope of the Report

By Property Type

• Residential

1. Apartments

2. Condominiums

3. Villas

4. Landed Houses

• Commercial

1. Office Spaces

2. Retail Outlets

3. Industrial Real Estate

• Other Property Types

1. Industrial

2. Hospitality

3. Others

By Service

• Property Management

• Valuation Services

• Other Services (Advisory Services and Leasing)