According to DHG Properties, the UAE’s residential real estate market is being boosted by the commercial property market as tax advantages, high rental yields, and Golden Visas lure international investors.
The renowned Swiss real estate developer said the UAE’s high commercial property demand translates to tremendous residential real estate success for the country.
DHG cites a 45 percent increase in demand for industrial, retail, and office space through Q1 2024. According to Miloš Antić, Vice Chairman of DHG Holding and Founder of DHG Properties, this surge is pivotal in facilitating sales transactions in the country’s real estate sector.
UAE Real Estate Demand
The UAE’s industrial and retail sectors grew by 34 percent and 41 percent, while the office sector demonstrated the most significant growth at 61 percent.
Antić said: “The country’s future-oriented, flexible remote work system was born out of necessity during COVID-19, but the pandemic is now a thing of the past, and business has resumed as usual.
“Hybrid and work-from-home systems remain intact in the UAE, but employees have returned to offices in more significant numbers.
“With an increased demand for commercial spaces, residential demand has followed in parallel; homes that serve as a separator between professional and personal life and provide easy access to workplaces are being highly sought after.“
The UAE’s growing demand for commercial infrastructure is to accommodate existing residents and future ones.
Dubai, in particular, has witnessed tremendous population growth. In the first quarter of 2024, over 25,700 individuals arrived in the emirate, as opposed to only 25,489 over the entire 2023.
With this, DHG has observed an uptick in German, Indian, and British investment, with these nationalities contributing to 43 percent of the 50 percent of sales that have already been logged for the company’s Helvetia Residences project in JVC.
Many of these investors live overseas but are migrating to the emirate and funding in its real estate sector due to tax benefits and high rental yields, among other elements.
The UAE’s rank as the most popular destination for global workers reinforces the fact that commercial real estate growth is fueling the country’s residential property success.
A recent survey illustrates this: 82 percent of professionals in the UAE and KSA said they prefer working in the GCC region rather than moving to Europe or the US. Approximately 46 percent of respondents credit the region’s standard of living, and 35 percent cite its attractive lifestyle.
Antić said: “It’s easy to forget that the real estate sector is affected by other dynamics, and vice versa. With that said, the UAE’s wise leadership is implementing several initiatives, from Golden Visa reforms to D33 and now the Quality of Life Strategy 2033, which is positively impacting the country as a whole and, in relation, its real estate market.
“As the nation continues its growth journey, developers must not only commit to present-day market dynamics but also to future-proof the nation for years to come.“
DHG is carrying its signature European glimmer to the UAE via Helvetia Residences. With this JVC-situated project, the company caters to the country’s various nationalities and strengthens its portfolio.
