UAE’s hotel market performed strongly in Q1 2022, driven by the Expo event and returning international visitors.
The uplift in overall performance in the UAE was primarily driven by beachfront and luxury developments, which have been benefitting from solid leisure demand, according to a recent market overview report commissioned by JLL, a consulting firm for real estate services.
Also, both upper-upscale and midscale hotels saw higher average daily rates (ADR).
In the office market, building on the momentum seen in the final quarter of last year, rents in well-managed quality office buildings continued to perform well.
In Dubai, average Grade A rents in the CBD were up 9 percent year-on-year to about 1,840 dirhams per square meter per annum in Q1 2022.
On the same basis, Grade A rents in Abu Dhabi rose by 5 percent to an average of 1,650 dirhams per square meter per annum.
In the residential market, construction activity continued in earnest as improving sentiment and rising demand from investors & end-users alike provided developers with renewed impetus to deliver projects. Over the remainder of this year, an additional 42,000 units are expected to be completed.
Meanwhile, improving tenant demand for residential units in the UAE broadly underpinned the annual increase in rents in February, of 11 percent in Dubai and 3 percent in Abu Dhabi.
