The UAE’s diverse business sector has driven significant growth in the real estate market, contributing approximately 5.5 percent of the country’s overall gross domestic product (GDP), according to data from global platform Statista.

Booming industries such as hospitality, industrial sectors, and food and beverage, along with high demand for premium office space, have created a strong demand in the real estate sector. Limited supply, particularly in key areas, has led to a notable rise in sector revenues.

Dubai’s hospitality market continues to perform well, with a 2.7 percent year-on-year increase in revenue per available room (RevPAR) as of September 2024, fueled by rising tourism, reports the Khaleej Times. Similarly, Abu Dhabi’s hospitality sector saw strong growth, with 2.4 million guests visiting the capital’s hotels from January to May 2024.

In the food and beverage (F&B) sector, competition continues to rise, driving lease renewals in prime locations across the UAE.

Real Estate Sector Growth

According to JLL’s latest UAE Market Dynamics report, Dubai’s residential market saw a 35.6 percent year-to-date increase in sales transactions. Off-plan properties, in particular, have driven this growth, with a 50.3 percent year-on-year rise in transaction volumes in the third quarter of 2024, Khaleej Times reported.

One major factor driving demand for property in Dubai is the eligibility for the Golden Visa, introduced in 2019. This visa offers long-term residency for up to 10 years to individuals investing at least AED 2 million in real estate. The Golden Visa is particularly attractive to expats, allowing them to secure their residency while benefiting from property appreciation and rental income.

In 2024, rental yields in popular areas such as Jumeirah Village Circle and Dubai Hills Estate reached as high as 8.5 percent, making property ownership increasingly appealing.

Impact on the Job Market

LinkedIn research reveals that 82 percent of professionals in the UAE and Saudi Arabia prefer staying in the region rather than relocating to Europe or the U.S., citing a high standard of living (46%), appealing lifestyle (35%), and professional growth opportunities (31%), according to Zawya.

Furthermore, the UAE has emerged as one of the most resilient job markets globally, with a 0.3 percent annual increase in employment, up 30 percent compared to pre-pandemic levels, Zawya reported. In 2024, 62 percent of professionals indicated they were either actively seeking new opportunities or planning to do so soon, with better salaries (42%) and improved work-life balance (33%) being the primary reasons for career moves.

In conclusion, the UAE’s dynamic business environment continues to bolster its real estate and job markets, supported by strong growth in sectors such as hospitality, industrials, and food and beverage. 

The demand for premium office and residential spaces, coupled with attractive initiatives like the Golden Visa, has positioned the UAE as a prime destination for investment and long-term residency. This growth is further reflected in increased employment opportunities and the nation’s resilience in retaining top talent, solidifying the UAE’s status as a thriving economic hub.