A report by Jones Lang LaSalle (JLL) revealed a 4% increase in the sales prices of residential units in Dubai and Abu Dhabi during the third quarter of this year, compared to the same period in 2020. Meanwhile, rental prices in Dubai dropped by 3%, while prices remained stable in Abu Dhabi. According to the "Real Estate Market Overview in the UAE for the Third Quarter of 2021" report by JLL, around 11,000 residential units were delivered in Dubai during the third quarter, increasing the total inventory to 629,000 units, with an expected delivery of 23,000 units by the end of this year.
In Abu Dhabi, the report indicated that approximately 2,900 residential units were delivered during the third quarter, raising the total inventory to 270,000 units, with an expected delivery of 2,000 units by the end of the year. The sector saw a revival in off-plan sales attracting investors once again, with developers launching projects with attractive payment plans to benefit from the rising activity. JLL anticipated that demand for high-quality villa supply in the remaining period of this year would enhance the recovery in sales prices.
**Office Sector:** JLL reported that 40,000 square meters of office space were delivered in Dubai during the third quarter of this year, bringing the total inventory to about 9 million square meters, while 15,000 square meters were delivered in Abu Dhabi, increasing the inventory to 3.8 million square meters. It added that office rental prices in Dubai decreased by 1% in the third quarter compared to the same period last year, while remaining stable in Abu Dhabi.
The report noted that technology and e-commerce companies recorded the highest demand rates as they sought to expand their premises to accommodate their growing workforce, expecting further growth in new demand as business activity continues to recover. JLL highlighted the return of consumer confidence with the easing of COVID-19 restrictions and the anticipated increase in international visitors, indicating that this would provide the retail sector an opportunity to enter a recovery phase. The performance of local shopping centers in the country improved during the third quarter, driven by consumer demand from nearby residents, while some retail companies in the food and beverage and household goods sectors managed to cope with the pandemic's effects better than their peers in other sectors.
Additionally, in Dubai, nearly 40,000 square meters of retail space were added, raising the inventory to 4.4 million square meters, while 6,100 square meters were added in Abu Dhabi, bringing the inventory to 2.9 million square meters. JLL predicted the delivery of 75,000 square meters in Dubai and 11,000 square meters in Abu Dhabi during the fourth quarter of this year. The average rental prices in shopping centers during the third quarter in Dubai decreased by 1% year-on-year, while in Abu Dhabi, they fell by 7%.
