According to the latest market research study published by P&S Intelligence, the U.A.E. construction & renovation market is experiencing significant growth, with an estimated revenue of USD 32.4 billion in 2024. This market is projected to expand at a compound annual growth rate (CAGR) of 4.7%, reaching approximately USD 42.6 billion by 2030. This growth is driven by several factors, including the evolving preferences of consumers, particularly the expatriate population, a large number of aging structures, and the arrival of advanced building technologies.
Renovation activities in the UAE encompass various aspects
of a building, such as design, exteriors, and finishing, aiming to upgrade,
improve, and restore existing properties. The increasing demand for renovation
is attributed to rising property prices, improving lifestyles, and the adoption
of new technologies. Notably, in Q1 2024, Dubai witnessed a 21% annual rise in
both rental and sale prices, while Abu Dhabi experienced a 7% increase in sale
prices and a 4% rise in rental prices compared to Q1 2023.
Key Insights
- The
UAE construction renovation market is projected to grow from USD 32.4
billion in 2024 to USD 42.6 billion by 2030, with a CAGR of 4.7% during
the forecast period.
- The
market is highly fragmented due to the presence of numerous local,
regional, and international players, with low barriers to entry
encouraging diverse participation.
- Dubai
is the largest and fastest-growing emirate in the renovation market,
driven by its dynamic real estate sector and increasing demand for
property upgrades.
- The
residential sector holds the largest application share, with a growing
emphasis on enhancing living spaces to meet evolving consumer
expectations.
- Integration
of advanced technologies, such as smart home appliances and building
management systems, is a key trend in the market, enhancing convenience,
security, and energy efficiency.
- The
expatriate population's interest in luxury and modern living solutions is
driving the acceptance and demand for high-end renovation services.
- The
adoption of sustainable and energy-efficient building practices is gaining
momentum, aligning with global trends towards environmental
responsibility.
- Government
initiatives and infrastructure projects are contributing to the growth of
the renovation market, providing opportunities for modernization and
development.
- The increasing cost of new properties is prompting property owners to invest in renovations as a cost-effective alternative to purchasing new homes.
- The market's growth is also supported by the availability of skilled labor and advanced construction materials, facilitating efficient and high-quality renovation projects.
