United Arab Emirates Real Estate Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Key Highlights

• The UAE real estate services market is estimated to register a CAGR of approximately 5% during the forecast period.
• In 2018, the UAE facility management market was valued at USD 5.4 billion. The facility management sector is currently one of the healthiest sectors in the UAE market, due to the increased demand for services, along with the delivery of mega projects, the approach of Expo 2020, and the inauguration of new destinations in the United Arab Emirates. The Emirate’s real estate sector generated an investment value of more than USD 15.2 billion in 2019. Technologies, such as artificial intelligence, remain to be key ingredients in the United Arab Emirates’ quest to keep up with the international changes. The UAE government announced several initiatives, with the aim of driving economic diversification and stimulating the weakened market demand.
• The government’s new initiative in Dubai for permanent residency called ‘Golden Card’ aims to provide permanent residency for investors and exceptional workers in the fields of health, engineering, science, and art. The new 10-year residency visa in the United Arab Emirates may give eligible residents a stronger feeling of permanence in the country and increase property investments. The five-year retirement visa with the condition of owning a property in the country may also see more residents viewing the United Arab Emirates as a long-term option.
• Dubai Land Department launched the Real Estate Self-Transaction (REST) platform, which is a part of the Dubai 10x initiative. This platform allows the digital management of all property-related transactions, as well as access to other services. RERA (Real Estate Regulatory Agency) has also launched Taqyimee, a smartphone application for real estate valuation services. It connects real estate owners and investors to valuators, reducing the time and cost involved in the process. These digital platforms are likely to increase transparency in the Dubai property market, making it more investor-friendly and improving access to real estate services.

Key Market Trends

Increase in Facility Management Services in the United Arab Emirates

Current trends have shown that some of the key priorities in the sector point to competitiveness being necessary for companies to remain profitable, with a focus on being proactive in creating strategic partnerships, value creation, and leveraging the use of new technologies. Blockchain, for instance, offers a cutting-edge technology that enables real-time visibility, security in contracts, and accountability. Meanwhile, artificial intelligence presents an opportunity to optimize complex processes and segregate tasks between humans and machines, as well as establish predictive models that chart possible solutions. Energy management is another aspect that provides a huge potential for the facility management sector to expand its services, considering the increasing prices of utility and the rising awareness to address the environmental impact of conventional energy resources. In addition, smart facilities deliver new efficient ways to manage buildings with advanced connectivity.

Increase in Infrastructure Activity in the United Arab Emirates

The increasing real estate and infrastructure investments in the country are significantly driving the number of luxurious or premium facilities in the region. Mega development projects in these economies and rising government spending to develop better and smart infrastructure further create huge opportunities for the real estate services market players to expand their businesses in the region. Compared to Dubai, Abu Dhabi has well-organized development projects, all of which offer the long-term potential for real estate services. The government has announced the Higher Real Estate Planning Committee, whose main target is to control this demand between demand and supply. Hence, both the private and public sectors are coming together to control the market, which is quite essential. Real estate accounts for about 15- 20% of Dubai's gross domestic product (GDP).

Competitive Landscape

The report covers the major players operating in the UAE real estate services market. The market is fragmented. The upcoming Dubai Expo 2020, increasing infrastructure activity in the region, and adoption of technology, among other factors, drive the market, which is expected to grow during the forecast period.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support