The UAE’s real estate market continues to showcase resilience and growth, driven by strong demand, strategic development, and government-backed initiatives. Asteco’s Q3 2024 report highlights impressive momentum across Dubai, Abu Dhabi, and the Northern Emirates, reflecting a dynamic property market with opportunities in both residential and commercial sectors.
Dubai Market: A Surge in Deliveries and Price Growth
Dubai recorded a remarkable 50% increase in apartment completions during Q3 2024, with 8,100 new units delivered. Looking ahead, an additional 14,900 units—comprising 11,800 apartments and 3,100 villas—are expected in Q4.
Rental rates for apartments and villas grew by 3% and 2%, respectively, fueled in part by updates to the RERA rental index. Sales prices mirrored this growth, with apartments rising 3% and villas 4% quarterly. The off-plan market remains robust, supported by competitive developer payment plans.
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The office sector demonstrated significant growth, with quarterly and annual rent increases of 5% and 21%, respectively. Limited supply and continued demand for Grade A office spaces underscore the sector’s strength, while new projects aim to meet the rising needs of high-net-worth buyers.
Abu Dhabi Market: Luxury Properties Lead the Way
Abu Dhabi remains a key growth market, with 950 residential units completed in Q3 2024 in prime areas like Yas Island, Jubail Island, and Al Raha Beach. Additionally, a pipeline of 2,560 units, bolstered by partnerships like the one between Aldar Properties and Mubadala Investment Company, reinforces confidence in the emirate’s real estate potential.
Rental rates for apartments rose by 1% quarterly and 4% annually, with premium properties recording up to 5% growth. Villa rental rates climbed 2% quarterly and 4% year-on-year, with Saadiyat Island and Khalifa City seeing the highest demand.
In the sales market, over 1,850 transactions took place in Q3, with ready properties preferred over off-plan purchases. Apartments saw a 4% quarterly and 8% annual price increase, while villas posted a 2% quarterly and 4% annual growth. Saadiyat Island villas stood out, achieving over 25% year-on-year growth as luxury off-plan properties maintain high demand.
Northern Emirates and Al Ain: Affordable Alternatives
The Northern Emirates experienced steady growth, attracting tenants seeking affordability and larger living spaces compared to Dubai. Rental rates increased slightly but remained significantly lower, while the sales market displayed consistent demand and price appreciation.
In Al Ain, demand for residential units drove rental rates up by 2% quarterly and 1% annually. Office rents also increased by 4%, reflecting sustained demand in this developing market.
A Promising Outlook
The UAE’s real estate market remains buoyant, with strategic development, government initiatives, and robust demand contributing to its growth. Whether in Dubai’s fast-paced residential sector, Abu Dhabi’s luxury-focused market, or the affordability of the Northern Emirates, opportunities abound for investors and residents alike.
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