Unstoppable Surge: Dubai & Abu Dhabi's Off-Plan Transactions Reach New Heights

Dubai And Abu Dhabi: Off-Plan Residential Boom

In Dubai, off-plan residential sales saw a significant increase in value and volume during Q2, with investors focusing on studios and 1BR units in areas like JVC, Dubailand, and MBR City. Similarly, the off-plan market in Abu Dhabi also performed well, driven by villa transactions on Al Reem Island and Yas Island. The residential stock in both cities increased, with more units set to be delivered in the coming months. The residential market in Dubai saw an uptick in sale prices and rentals, particularly in established mixed-use communities, while in Abu Dhabi, sale prices and rentals remained stable. Overall, both cities are attracting investors and experiencing sustained growth in the real estate sector.

Abu Dhabi's Office Revolution: Grade A Space In High Demand

In terms of the office market, Dubai faced a low availability of good-quality office space, leading to an increase in co-working and serviced offices. Grade A rents in the Central Business District rose, and there was a 10% office vacancy rate. In Abu Dhabi, there was an increase in office inquiries and demand for Grade A space due to limited availability. Co-working and serviced offices also remained popular. Rising rents and limited availability forced occupiers to reassess their space strategy, with some settling for what was available and others exploring secondary locations or built-to-suit opportunities.

Faraz Ahmed, Associate, Research at JLL MENA, said, “In the second quarter, all sectors demonstrated strength and adaptability propelled by new and emerging trends. The continued growth in off-plan transactions, rising demand for quality office spaces, evolving retail offerings, and transformative renovations in the hotel sector, collectively indicate the dynamism of Dubai and Abu Dhabi as vibrant investment destinations. With strong investor confidence, robust absorption of new projects, and innovative developments, there is no doubt that these cities are paving the way for sustained growth and transformation across the entire real estate landscape in the UAE.”

The retail sector saw the addition of new food halls and the expansion of malls in Dubai. Well-located retail developments benefited from an increase in tourists, while community malls and retail developments in secondary locations saw a slight decrease in activity. Rental values in primary and secondary malls fell slightly. In Abu Dhabi, the retail market remained stable, with certain landlords facing pressure from new retail developments. However, landlords were accommodating and offered incentives to established international brands.

Overall, Dubai and Abu Dhabi are vibrant investment destinations, with strong investor confidence, robust absorption of new projects, and innovative developments. The real estate landscape in both cities is experiencing sustained growth and transformation.