The UAE’s property market showcased a robust performance across all sectors during the first half of the year, defying global macroeconomic challenges, according to a report. Despite headwinds, the country’s non-oil economy exhibited strong growth, bolstering the real estate industry.
On the residential front, Abu Dhabi’s market witnessed a remarkable 88.6 percent annual increase, recording 4,737 sales transactions in the first six months of the year. Meanwhile, average property prices in Dubai surged by 16.9 percent up to June 2023, as reported by the market consultancy firm, CBRE.
In the hospitality segment, UAE hotels experienced a positive trend with average occupancy rates rising by 4.1 percentage points over the first half of the year, providing further support to the flourishing property market.
The overall outlook remains promising, with the UAE Real Estate Market Review Q2 2023 report expressing optimism despite the apparent easing of global macroeconomic challenges. However, the report also acknowledges some potential risks to watch, including the impact of higher interest rates, the effect of increased housing costs on consumers (especially in Dubai), and the potential implications of a weakening US dollar.
In summary, the UAE property market continues to thrive, driven by strong performance in both the residential and hospitality sectors, and remains resilient amid prevailing economic uncertainties.