It is expected that 35,000 housing units will be delivered in the second half of 2022

A report by Jones Lang LaSalle (JLL) showed that the prices of sales and rents of residential units in Dubai continued to rise at the end of May of this year by 11% and 19%, respectively, compared to the same period in 2021.

The report, a copy of which was seen by "Emirates Today", stated that the demand for distinctive residential properties is strong in Dubai, especially in projects overlooking the waterfront.

The report pointed out that the evidence indicates the continued influx of large numbers of investors from Eastern Europe, and the continued demand of buyers from China, India, Pakistan and Central and Western Europe for these properties.

According to the report, the second quarter of this year witnessed the delivery of about 6,500 housing units in the Emirate of Dubai, bringing the total inventory to 664,000 housing units, and 35,000 housing units are expected to be delivered in the second half of this year.

The report indicated that the strong demand for new villa and townhouse projects continued. Annual sales prices for apartments and villas increased by 5% at the end of last May on an annual basis, while rents increased by 3%.

According to the report, about 1,300 housing units were delivered in Abu Dhabi during the past quarter, bringing the total inventory to 276,000 housing units, and 5,200 housing units are expected to be delivered by the end of this year.

office space

The report showed that the strong demand for first-class offices coupled with the limited availability of this category of space led to a double-digit growth in rents in Dubai.

He pointed out that the average value of rents for the first category increased by 15% in Dubai to reach 1945 dirhams during the second quarter of this year, while it increased by 8% in Abu Dhabi to reach 1,700 dirhams per square meter annually.

Although no new projects were delivered in the office space sector during the second quarter of the year, the good levels of leasing activity helped reduce the availability of vacant units in the business districts, which reached 14% in the second quarter of this year.

This is due to the increase in demand from tenants for quality with their tendency to lease space in well-managed office space buildings that are owned by a sole proprietor.

This quarter also saw a significant rise in inquiries from new companies in the market, especially on flexible office space coupled with demand from existing tenants looking to expand their premises.

In terms of absorption rates, the financial services, technology and e-commerce sectors continued to maintain their leadership.

Retail sector

JLL said that the retail sector did not witness the completion of any new projects, which led to the stability of inventory in Dubai and Abu Dhabi without change, and it expected the completion of about 333,000 square meters of retail outlets in Dubai and the completion of 203,000 square meters in Abu Dhabi during the second half of the year. 2022.

She pointed out that, however, developers have expressed some concern about the delivery of retail outlet projects planned for the next 12 to 18 months, which may lead to fluctuations in the balance of supply and demand.

In order to mitigate the effects of this, it is possible to postpone the completion of projects until the economic conditions recover, allowing the absorption of the areas expected to be added by future development projects to the market.

In contrast to Abu Dhabi, which witnessed stability in the rental prices of retail outlets, the rental prices of retail outlets in Dubai continued to decline in the second quarter, which decreased by about 3% on average compared to last year.

Thanks to strong domestic demand for leisure destinations and a boom in the tourism sector, F&B outlets outperformed the rest of the retail segments, while the fashion and luxury segment continued to recover.

Hotel sector

The report stated that the hospitality and hotel sector in the UAE has benefited from the influx of visitors coming from a variety of tourist-exporting markets, as the sector has witnessed a remarkable increase in occupancy rates during the past five months. Dubai and Abu Dhabi recorded occupancy rates of 75% and 71%, respectively. This is a significant increase compared to the same period last year.

He stated that the rise in the performance of this sector was driven by luxury resorts and seaside destinations, which remained the preferred choice for the guest more than other categories.

With regard to hotel projects, the report showed that the stock of hotels in Dubai rose to more than 144,000 hotel rooms, after the delivery of about 500 rooms during the second quarter of 2022, and 10,000 rooms are scheduled to be completed in the second half of the year.

She added that the supply of hotels in Abu Dhabi did not change during the second quarter of this year, to remain at 32,000 rooms, and 700 rooms are scheduled to be completed during the current year.

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