Dubai is set to add another 25,000 housing units by the year’s end, bringing the total housing stock in the city to approximately 754,000 units. In contrast, Abu Dhabi delivered about 1,600 units in the first quarter and is expected to deliver another 6,000 units for the rest of 2024. JLL remains positive about the future outlook for the UAE, emphasizing the significant progress made in 2023 nearly tripling the value of projects awarded compared to the previous year.
The latest report from JLL Real Estate on the construction market in the UAE during Q1 of 2024 revealed that despite ongoing global challenges such as inflation, high interest rates, and geopolitical tensions, high-value projects worth $590 billion are currently in the market. Among these projects, residential projects represent about $125 billion (21%), while mixed-use projects make up $232 billion (39%). The report also highlights that despite rising construction costs and price fluctuations in shipping and transportation impacting local construction prices due to increased reliance on imported materials. However, it suggests that construction material availability is stable with prospects of improvement in local manufacturing capabilities.
Despite external challenges such as rising costs and geopolitical tensions affecting global markets, Dubai continues to show promise with strong demand for new projects expected to help sustain growth. To tackle rising costs and maintain growth momentum, developers may consider developing smaller units and projects in secondary areas. The World Steel Association expects global steel production to grow by 1.9% in 2024 with demand in Middle East and North Africa region set to rebound significantly.
