Latest news with #PrathyushaGurrapu
Khaleej Times
25-03-2025
- Business
- Khaleej Times
UAE: Over 38,000 new residential units to come up in Abu Dhabi by 2028
Abu Dhabi property market pipeline looks strong as 38,700 new units are set to come to market by 2028, easing pressure on rising prices in the UAE capital, according to property consultant, Cavendish Maxwell. The residential real estate sector in the UAE capital is poised for further growth this year and beyond, fuelled by increased demand and strategic Government initiatives as around 10,800 new units are due to be delivered this year, with another 6,000 in 2026. By the end of 2028, Abu Dhabi's total residential inventory will be around 313,700, Cavendish Maxwell said. 'The residential sector in Abu Dhabi is experiencing steady growth, driven by increased demand from local and international investors as well as strategic government initiatives such as residency incentives. Sustainable development and innovative housing solutions will be key in shaping the future of capital's residential property market, with rising demand and price appreciation further boosted by infrastructure expansion and enhanced community offerings,' said Andrew Laver, associate partner, Cavendish Maxwell, Abu Dhabi. 2024 performance Abu Dhabi's real estate market recorded a strong performance in 2024, with 9,700 sales transactions worth a total of Dh26 billion. Around 5,200 new homes were delivered in 2024 — mostly at Al Raha Berach, Yas Island, Masdar City and Saadiyat Island. Last year, average sales prices for apartments rose by nearly 11.5 per cent, with villa prices up by just over 12.5 per cent. Yas Island commanded the biggest rises at more than 20 per cent for apartments and 13 per cent for villas. According to Cushman & Wakefield Core, 3,004 residential units were delivered in 2024, 46 per cent below forecasts. 'Supply struggled to keep up with demand in 2024, driving sharp price increases. While new supply in 2025 is expected to help, demand remains high, putting continued pressure on rents and sales prices,' said Prathyusha Gurrapu, head of research and consultancy at Cushman & Wakefield Core. Cushman & Wakefield Core noted that housing demand in the capital far exceeded supply in 2024. Cavendish Maxwell data showed that almost 40 residential projects were launched in Abu Dhabi last year, bringing 11,000 new units to the market. Al Reem Island saw the highest number of new units (2,000), followed by Saadiyat Island (1,800) and Al Bahyah (1,700). Aldar Properties dominated the market, launching around 4,000 units across 12 projects, reinforcing its position as a leading player in the capital's real estate sector. The performance of this year's off-plan market will hinge on the number of new launches: a decrease in new projects could lead to a decline in the volume and value of off-plan transactions.
Zawya
13-03-2025
- Business
- Zawya
Abu Dhabi real estate hits record highs as demand outpaces supply
Abu Dhabi: Abu Dhabi's real estate market saw unprecedented growth in 2024, with residential rents up 20%, sales prices climbing 11%, and prime office occupancy reaching 95%, as tight supply fuelled competition and pushed prices higher. The Abu Dhabi Rental Index, launched in 2024, aims to bring greater transparency to pricing and lease negotiations, while new developments are expected to ease shortages in the coming years. Despite a wave of new supply expected in 2025, demand remains strong, driven by economic growth, foreign investment, and government-backed initiatives. As part of the UAE's Vision 2030, expansion across finance, technology, and tourism is accelerating job creation, further increasing real estate demand and reinforcing Abu Dhabi's position as a key global investment hub. Key takeaways: Residential: Limited new supply: Only 3,004 residential units delivered in 2024, 46% below forecasts. Prices climb: Sales prices rose 11% year-on-year, with villas leading growth. Rents spike: Residential rents jumped 20%, with Saadiyat Island apartment rents up 31%. Secondary market thrives: Transactions increased by 54% in 2024 as buyers favored ready-to-move-in homes. Office: Record occupancy: Prime office spaces reached 95% occupancy, citywide average at 89%. Rents climb: City-wide office rents rose 11%, Financial sector drives demand: Banking and finance accounted for 24% of all office space inquiries. Residential demand stays high as prices rise Housing demand far exceeded supply in 2024, pushing both sales and rents to new highs. Limited new deliveries drove an 11% jump in prices, with villas seeing the strongest appreciation. Khalifa City prices surged 30%, reflecting the growing appeal of suburban communities. Rental markets tightened, especially in premium locations. Saadiyat Island saw rents rise 31%, while Reem Island and Al Raha Beach increased by 24% and 21%, respectively. As central areas grow more expensive, demand is shifting toward suburban and mid-market neighborhoods. In 2025, the Emirate will see 8,500 new homes delivered - almost triple the 2024 figure - but demand is expected to remain strong, keeping pressure on prices. 'Supply struggled to keep up with demand in 2024, driving sharp price increases,' said Prathyusha Gurrapu, Head of Research & Consultancy at Cushman & Wakefield Core. 'While new supply in 2025 is expected to help, demand remains high, putting continued pressure on rents and sales prices.' Rents climb amid record office occupancy Abu Dhabi's office sector had one of its strongest years on record. Prime offices were nearly full, with citywide occupancy reaching 89%. Limited availability fueled an 11% jump in rents, with most new developments already pre-leased. Although 2025 will see 104,000 sq. m. of office space come to market, most will be pre-leased. 'Office space is in short supply, especially in ADGM and Reem Island,' said David Short, Head of Abu Dhabi at Cushman & Wakefield Core. 'Companies are acting fast to secure space, while others are looking at newer districts or maximizing their current offices.' Looking Ahead New supply will provide some relief, but Abu Dhabi's real estate market remains competitive. The Abu Dhabi Rental Index is expected to help create a more transparent pricing structure, while freehold ownership expansions will open new investment opportunities. "Abu Dhabi's real estate market is set for continued growth in 2025. The residential sector will see a wave of new supply in key investment zones, helping to create a more balanced market. Meanwhile, office space remains in high demand, with Prime and Grade A segments nearing full occupancy, says Prathyusha Gurrapu, Head of Research & Consultancy at Cushman & Wakefield Core. 'The city's push for economic diversification—particularly in finance and technology—along with major infrastructure upgrades and strategic government initiatives, will keep attracting residents, businesses, and investors." -Ends- For further information contact: Rachel Smylie, Head of Marketing & Communications, Prathyusha Gurrapu, Head of Research & Consultancy, About Cushman & Wakefield Core Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. Cushman & Wakefield Core is an independently owned and operated affiliate of Cushman & Wakefield, with over 17 years' experience operating in the UAE. For additional information, visit
Zawya
31-01-2025
- Business
- Zawya
Record demand-supply gap in Dubai real estate
Dubai: Dubai's real estate market experienced a landmark year in 2024, driven by unprecedented demand in both residential and office sector. As supply struggles to keep pace, the market is seeing record-breaking growth in rents, prices, and transaction volumes according to data from Cushman & Wakefield Core's Dubai Annual Report 2024-2025. With no sign of slowing demand, 2025 will see further increases, despite more stock coming to market, particularly in the residential market. Looking ahead to 2026/2027, major project completions, and regulatory adjustments will help address the imbalance, bringing more stability to the market and reinforcing Dubai's position as a global real estate investment hub. Key takeaways: Supply struggles to keep pace Just 30,200 residential units handed over in 2024, 11% down on 2024 forecasts and 30% lower than 2023. Dubai holds second-highest global office occupancy levels at 92% and expected to exceed 94% by end-2025. Record-breaking price and rental increases Citywide residential rents and sales prices increased by 16% and 18% year-on-year, respectively. Office rents surged by 22% year-on-year in 2024, with further increases of 10-12% forecast for 2025. Accessing large office space is a particular challenge for major occupiers, forcing them to act quickly on transactions or consider emerging locations. Ultra-prime residential sales hit record highs as Dubai sees the largest influx of millionaires globally. New waterfront districts present investment opportunities but questions remain around long-term value in comparison to iconic Palm Jumeirah 'With off-plan transactions now more than double those in the secondary market, Dubai's residential market is becoming increasingly investor-driven,' says Prathyusha Gurrapu, Head of Research & Consulting at Cushman & Wakefield Core. This trend is pricing a segment of end-users out of the market, as off-plan activity becomes skewed toward investors. Rising inflation and growing affordability challenges, particularly in the rental market, are driving a shift toward suburban areas and the Northern Emirates - in turn, creating opportunities for investors and developers as local neighbourhood infrastructure grows.' 'We saw significant transactions within the commercial real estate space in 2024, including the highest ever single-buyer commercial development transaction at AED 2.3 Billion - Aldar's acquisition of one of the largest commercial towers in DIFC. This institutional level of interest has been replicated in the strata market with successful launches of off-plan commercial projects and further announcements on the horizon,' says Robert Thomas, Head of Agency at Cushman & Wakefield Core. Surge in new supply still won't fully meet demand in 2025; Moderation expected in 3-5 years 2025 will see a forecasted 41% y-o-y surge in residential handover volumes with over 42,000 units, bringing some relief to the market; moderate increase in rent and sales prices of less than 10% expected as supply pipeline builds. There was the equivalent of one residential project launch every 15 hours in 2024, providing strong future supply. Double the amount of new office supply expected in 2025 compared to 2024 (1.66 million sq. ft.) but the market is expected to remain undersupplied until 2027/2028. DIFC responsible for a third of the total city-wide office supply over the next 3 years – most of which is expected to be pre-leased due to unrelenting demand. " We're seeing an incredible surge in demand for office space in Dubai, with more companies entering the market and existing tenants looking to expand,' says Robert Thomas, Head of Agency at Cushman & Wakefield Core. ' While the supply pipeline is stronger this year, much of it is pre-leased or focused in specific freezones, which is adding to the pressure. Many of our clients are now taking a strategic approach - maximizing the use of their existing spaces or exploring newer zones like Dubai CommerCity and Expo City Dubai to meet their needs." Regulatory updates to help address imbalances By reflecting real-time trends, the updated RERA index will support regulatory clarity and reinforce confidence across Dubai's residential and commercial real estate market, helping stabilise the rental increases while also encouraging landlords to upgrade assets to maximise benefits. While the January 2025 UAE Central Bank directive - introducing a 6% additional down payment for mortgage buyers from February 1st - will influence some segments of the market. ' While the most recent regulatory updates will vary in impact, we will start to see them help address market imbalances, encouraging asset upgrades, and strengthening Dubai's position as a global real estate leader,' says Prathyusha Gurrapu, Head of Research & Consulting at Cushman & Wakefield Core. 'The recent DLD freehold ownership expansion along Sheikh Zayed Road and Al Jaddaf is a significant development and could soon extend to other established leasehold areas, driving up asset values and diversifying the owner-occupier mix. That said, the question remains: will GCC landlords sell, especially for developed properties with high rental yields and little to no debt?' 'This month's announcement on additional mortgage downpayments may slow down mortgage transactions, particularly for mid-market end-users but the overall impact on Dubai's residential market is expected to be minimal, as off-plan and cash transactions continue to dominate activity.'
