Forecast: UAE real estate will grow in 2H2022.

In its series of reports on the Saudi Arabia and United Arab Emirates Real Estate Market Outlook 2022, Kuwait's Marmor Financial Center announced its forecasts that the real estate sector in both countries will experience rapid growth in the second half of 2022, supported by their strong economic fundamentals.

The report includes an analysis of sub-sectors such as residential, office, retail and hospitality for the first six months of the year, as well as the impact of various new socio-economic policies, reforms and initiatives on the sector. The report, prepared by Marmore Mena Intelligence, aims to help investors determine the current real estate market conditions in the Gulf Cooperation Council region by examining a number of economic indicators such as oil and oil and gas GDP growth, inflation, job creation, interest rates, population and other indicators. The findings and observations in the report are supported by data from the past seven years and also present forecasts for the remainder of this year and next year.

The UAE real estate market outlook for the second half of 2022 report

The report suggests that the real estate sector in the UAE will generally grow in 2022 and that rental values and property prices will increase. The report also indicates that transaction volume in Dubai in the first quarter of 2022 has reached an all-time high compared to previous years at a region-wide level. Some of the major factors that contributed to the growth of the real estate sector in the UAE include the momentum of the national economy supported by rising oil prices, growth in the oil and gas sector and the positive results of Expo 2020 Dubai. Property prices continue to maintain their upward trend in the UAE in 2022, with average house prices in Dubai and Abu Dhabi rising by 11.3% and 1.5% respectively in the 12 months to March 2022.

Based on the assessment of various macroeconomic factors, the growth rate in the UAE real estate market is expected to accelerate in the second half of 2022. The UAE is expected to encourage investors seeking stable income to enter the real estate market, especially in light of the availability of relatively high rents as well as the ability of tenants to sustain such payments, in addition to incentive policies regarding visas and new work permits aimed at ensuring the sustainability of the skilled labor force in the UAE, and plans for the sustainable development of the city of Dubai as part of the 2040 Major Urban Plan, while the government continues to increase investor confidence in the real estate market.