A new research report – The UAE Real Estate Market Review – by JLL MENA provides insights into the Dubai’s rental market in 2023.
Throughout the year, Dubai’s residential market experienced a consistent influx of new supply. In 2023, over 36,000 units were delivered – with the majority being apartments. This increases the total stock to over 719,000 units.
In the capital, 2023 saw over 5,000 units delivered – resulting in a total completed stock of over 284,000 units. This year, JLL MENA reveals that approximately an additional 34,000 units are scheduled to be delivered in Dubai, with around 8,000 units anticipated in Abu Dhabi.
A robust year, 2023 saw strong demand in the residential market in both cities. In Abu Dhabi, successful launches in the off-plan segment contributed to a big rise in total transaction values, which surged by 102% annually, and a 77% Y-o-Y increase in volume compared to the same period last year.
In Dubai, there was significant growth in total transactions, with a 51% Y-o-Y increase in value and a 43% Y-o-Y increase in volume for the period of January to November 2023, according to data from Dubai Pulse.
Capital also experienced consistent growth throughout 2023, with a 2% increase in rental rates on an annual basis in Q4 2023. Dubai also saw an increase in rental rates of 19% in November 2023 compared to the same period the year prior.
According to JLL MENA, the positive momentum of the UAE’s residential market is anticipated to continue into 2024.
However, the The UAE Real Estate Market Review highlights a challenge for developers incorporating the rise in land prices and construction costs, thereby perpetuating the trend of smaller unit sizes and launches in secondary areas.
