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CBRE - UAE Real Estate Market Review Q4 2022

January 26, 2023

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  • The UAE’s GDP is forecast to have grown by 7.9% in 2022, where its hydrocarbon sector grew by 11.4% and its non-hydrocarbon sector by 6.6% over the same period.
  • In the fourth quarter of 2022, the total number of office Ejari contracts registered in Dubai amounted to 35,076, up 56.2% from the same quarter a year earlier.
  • In the year to Q4 2022, average Prime, Grade A, Grade B, and Grade C office rents in Dubai increased by 25.2%, 12.1%, 14.0%, and 22.0%, respectively, while average occupancy rates reach 88.0% as at Q4 2022, up from 78.9% a year earlier.
  • Given a marked increase in demand, rental performance in Abu Dhabi’s occupier market has substantially improved, where in the year to Q4 2022, average Prime, Grade A, and Grade B rents have increased by 11.8%, 8.8%, and 13.2%, respectively.
  • Average prices in Abu Dhabi’s residential market increased by 1.5% in the year through December 2022; however, average rents dropped by 1.0%.
  • In the year through December 2022, Dubai’s average residential prices increased by 9.5%, with average apartment and villa prices rising by 9.0% and 12.8%, respectively.
  • In December 2022, 8,662 residential transactions were registered in Dubai; this is an increase of 63.0% compared to the year prior. Over this period, off-plan transactions increased by 92.5%, and secondary market transactions increased by 35.4%.
  • In 2022, activity levels in Dubai’s residential market reached record highs, with the overall volume of transactions breaking the 2009 level of 81,182 transactions to reach a total of 90,881.
  • Year-on-year in 2022, the average occupancy rate increased by 5.4 percentage points.
  • Over the same period, the ADR increased by 18.2%, and as a result, we have seen the average RevPAR increase by 27.8%.
  • In the retail segment of the market, rental rates in both Abu Dhabi and Dubai have increased in 2022 by 5.6% and 51.5%, respectively.
  • In the year to Q4 2022, average industrial rents in Abu Dhabi and Dubai increased by 4.7% and  17.4%, respectively.