Origin Private Office’s Strategic Entry into the UAE’s Booming Real Estate Market
Summary: The UAE real estate sector is experiencing significant growth, attracting regional and international investors. Key segments, including residential, commercial, retail, and hospitality, are performing strongly. Dubai’s residential transactions increased by 51% from January to November 2022, driven by foreign demand. Office rents and occupancy rates have risen, and the hospitality sector has seen a strong rebound. Retail is also expanding, boosted by online shopping. Origin Private Office plans to capitalize on these opportunities, while policy reforms and a focus on sustainability, such as LEED-certified projects, are expected to further enhance the market’s appeal and growth potential.
The real estate sector in the UAE is experiencing a significant surge, drawing considerable interest from regional and international investors. The sector’s strength and resilience are evident across residential, commercial, retail, and hospitality segments, despite global economic challenges.
Recent data highlights the robust growth in the UAE real estate market. Dubai’s residential sector, for instance, saw a 51% increase in transaction volumes from January to November 2022, with the total value of transactions rising by 55% during the same period. This growth is primarily driven by foreign demand, positioning Dubai as a safe haven amidst global geopolitical and economic uncertainties. In 2022, Dubai added 38,000 residential units, bringing the total supply to 680,000 units, while Abu Dhabi delivered 6,000 new units, increasing its total stock to 279,000 units.
The office space segment also showed a remarkable turnaround in 2022. In Dubai, rents for Grade A offices in the Central Business District (CBD) grew by 21% year-on-year, reaching AED 2,100 per square meter per annum. Abu Dhabi saw an 8% annual increase in Grade A rents, averaging AED 1,790 per square meter per annum. These increases were driven by robust business conditions and limited prime office space, reducing vacancy rates to 11% in Dubai and 23% in Abu Dhabi.
The hospitality sector has rebounded strongly, with average occupancy levels reaching 72% in Dubai and 69% in Abu Dhabi during the first 11 months of 2022. Major events like the FIFA World Cup in Qatar and the Abu Dhabi F1 Grand Prix contributed to record hotel occupancy rates towards the year’s end.
Retail also saw growth, with over 6,000 new contracts in Q3 2022 in Dubai and a robust pipeline of new retail spaces. The rise of online shopping has driven retailers to enhance their digital presence, boosting revenues in a competitive market.
Amid this growing landscape, Origin Private Office plans to make a significant impact on the UAE real estate sector. The firm’s strategic entry focuses on high-demand areas like luxury residential and commercial developments, aiming to leverage the UAE’s favorable economic policies, excellent infrastructure, and global connectivity.
Recent policy reforms in the UAE, such as removing the AED 1 million minimum down payment requirement for obtaining a Golden Visa through real estate investment, are expected to further boost the market. This reform is likely to attract a broader range of investors and increase demand for high-quality real estate offerings.
Sustainability is another critical focus area. Developers like ZāZEN Properties are setting benchmarks with projects like ZāZEN Gardens in Al Furjan, aspiring to be the region’s first LEED Gold-certified residential development. These initiatives align with national goals such as UAE Net Zero 2050 and the Dubai 2040 Urban Master Plan, demonstrating a commitment to sustainable development.
The UAE real estate industry is booming, driven by strong demand across all segments: residential, commercial, hospitality, and retail. Origin Private Office’s interest in this market underscores the confidence in the region’s real estate landscape. With strategic reforms and a focus on sustainability, the UAE is poised for continued growth and is likely to attract significant global investment in real estate.
