JLL confirmed the continued influx of large numbers of international investors
Strong demand for premium residential properties in Dubai
The strong demand for new villa and townhouse projects in Dubai continues.
archival
A report by Jones Lang LaSalle (JLL) for real estate research and consultancy confirmed that the sale and rental prices of residential units in Dubai continued to rise at the end of last May 2022 by 11% and 19%, respectively, compared to the same period in 2021.
influx of investors
The report, a copy of which was seen by Emirates Today, indicated a strong demand for distinctive residential properties in Dubai, especially in projects overlooking the waterfront.
The report revealed 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.
Rising prices
According to the report, the second quarter of this year 2022 witnessed the delivery of about 6,500 housing units in Dubai, bringing the total inventory to 664,000 housing units, while 35,000 housing units are expected to be delivered in the second half of this year.
He pointed to the continued strong demand for new villas and townhouses projects, at a time when 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%.
The report pointed out that about 1,300 housing units were delivered in Abu Dhabi during the past quarter, bringing the total inventory to 276,000 housing units, while 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, and the limited availability of this category of spaces, led to a double 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 per square meter annually during the second quarter of this year, while it increased by 8% in Abu Dhabi to reach 1,700 dirhams per square meter.
The report indicated that although no new projects were delivered in the office space sector during the second quarter of this year, the good levels of leasing activity helped reduce the availability of vacant units in business districts, which reached 14% in the second quarter.
He attributed this to the increased demand from tenants for quality, with their tendency to rent space in well-managed office space buildings owned by a sole proprietor, and this trend led to the owners of office buildings regaining their bargaining power.
In its report, JLL 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 2022.
Hotel sector
The report stated that the hospitality and hotel sector in the UAE benefited from the influx of visitors from a variety of markets that source tourists, as the sector witnessed a noticeable increase in occupancy rates during the past five months.
The report showed that the hotel stock in Dubai rose to more than 144,000 hotel rooms, after the delivery of about 500 rooms during the second quarter of 2022, while 10,000 rooms are scheduled to be completed in the second half of the year.
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