A report issued by JLL Real Estate Consulting and Investments revealed that Dubai intends to deliver 25,000 units by the end of this year, bringing the total housing stock in the emirate to 754,000 units.
The report stated that Dubai witnessed the addition of 2,000 hotel rooms to its current portfolio in the first quarter of this year, with the focus mainly on the 5-star category. With another 5,000 rooms expected to be added in 2024, Dubai’s total hotel rooms will reach 160,000, while Abu Dhabi will add 500 rooms this year, bringing its inventory to 34,000 hotel rooms.
Positive Outlook
JLL maintained a positive future outlook for the UAE, which achieved a remarkable achievement in 2023 and nearly tripled the value of projects awarded, compared to the previous year.
According to “MEED Projects” magazine, which tracks and monitors regional projects, the value of these projects reached $87 billion, compared to $31 billion in 2022, which reflects the distinguished progress made by the country in line with its endeavors to achieve its goals in economic diversification and investment.
The company’s report indicated that despite the continuing global challenges such as ongoing inflation, high interest rates, and geopolitical tensions, the total value of construction projects that have not been awarded in the Middle East and North Africa region is expected to reach $3.9 trillion, pointing out that the UAE owns a large share of it. By 15%.
The report revealed that the construction sector in the UAE continues to grow with high-value projects amounting to $590 billion in the project market in the region, with residential projects accounting for about $125 billion (21%), while mixed-use projects represent $232 billion (39%).
Upward Trend
Laura Morgan, Head of Market Intelligence for the Middle East and Africa at JLL, said: Based on the strong resilience and promising growth prospects enjoyed by all sectors in the UAE, the construction market is showing a steady upward trend. Last year, under buoyant market conditions, the sector contributed $42.9 billion, representing about half of the total projects awarded.
Although the upward trajectory of land and construction costs remains a major challenge in 2024, the strong appetite for new projects will ease the pressure and maintain the sector’s growth momentum during the year.
According to Oxford Economics, the UAE is preparing to achieve GDP growth of 3.8% in 2024, up from 3% in 2023, and is scheduled to witness growth of 3.9% in 2025.
Although the Purchasing Managers’ Index issued by Standard & Poor’s Global recorded 56.9, a slight decrease from the February index of 57.1, the sector is still in a strong growth zone, according to Emirates NBD research.