UAE Property Market Facing Sluggish Growth

By Goldstein Market Intelligence || 2018-11-27 10:46:07 AM

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According to Goldstein Research, “Rapid growth in UAEs commercial, residential, retail and hospitality sector is the major factor for the growth of the UAE property market.”Moreover, real estate developers are taking more aggressive and imaginative approach to seizing the deals and getting important presales off the ground amid intense competition and fear of a downturn in the UAE property market.

“UAE Property Market Outlook 2024”

UAE Property Market is segmented based on property type, by ownership and by investor type. Based on ownership type, buyers segment accounted for the largest market share of more than 62% in 2016, but the UAE real estate market has witnessed slowdown as average property prices in UAE have dropped by +1% in the same year.

Browse Full Report: UAE Property Market

Goldstein Research’s analyst forecasts the UAE property market to grow gradually at a CAGR of around 7.4% to reach USD 132.5 billion by the end of forecast period owing to Dubai’s continued heavy investments in its tourism infrastructure

Abu Dhabi region have so far largely been affected by job and budget cuts, which has led to an upsurge in vacancies in the leasehold market, putting rental rates under pressure. On the other hand, real estate developers in Dubai have slowed down the delivery of new properties, which has led to a relative steadiness in rental rates, although there has been a substantial movement of tenants. Moreover, new road connections, improved quality housing supply, additional facilities, and retail, as well as tourism elements, which are making the Northern Emirates more attractive to residents.

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Hospitality Sector: Major Boost

Declining visitor numbers from Russia & neighbouring CIS countries which dropped 23% Y-o-Y in 2015 and sluggish economic growth in China and the Eurozone are predictable to continue during 2016, which will consistently impact demand levels – and in turn profitability. However, during the forecast period outlook for the hospitality real estate sector remains encouraging for UAE and will be rooted in the delivery of major demand producers that will help propel tourism demand – particularly from the leisure segment. The predictable delivery of the theme park complex, Bluewaters Island, the Opera District and major retail destinations in Dubai, along with Abu Dhabi’s promise to developing entertainment and cultural districts.

“UAE Property Market Outlook 2024” contains a detailed overview of the UAE property market in terms of market segmentation by property type, by ownership and by investor type.

Further, for the in-depth analysis, the report encompasses the industry growth drivers, market challenges, risk analysis, market attractiveness, BPS (Base Point Scale) analysis, Porter’s five force model and SWOT analysis.

UAE Property Market Report also provides a competitive outlook of some of the major players which includes profiling of companies such as: Emaar, Damac Properties, Nakheel Properties, Deyaar, Union Properties, Ras Al-Khaimah Properties (RAK Properties), Meeras Development etc. The company profiles include business strategy, geographical revenue distribution, major information of the companies which encompasses business outlook, products, services, and industries catered, financial analysis of the company and recent developments.

Overall, the report represents comprehensive synopsis on the UAE Property market that will help industry consultants, equipment manufacturers, existing players searching for expansion opportunities, new players searching possibilities and other stakeholders to align their market-centric strategies according to the ongoing and expected trends in the future.

Browse more region-specific report published by "Goldstein Research" to accumulate more facts and figures of Real Estate Industry

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