Abu Dhabi & Dubai Real Estate Market Report Q1 2024: Trends and Insights

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The UAE real estate market continues to thrive, driven by robust economic growth and significant developments in Abu Dhabi and Dubai. Here’s an overview of the latest trends and performance metrics from the first quarter of 2024, providing valuable insights for investors and stakeholders in the real estate sector.

Abu Dhabi Market Overview

Economic Growth and Sector Performance

Abu Dhabi’s economy has shown remarkable resilience, with the non-oil sector expanding by 9.1% in 2023, spurred by policies aimed at doubling the manufacturing sector by 2031. The real estate and construction sectors have significantly contributed to this growth, with the construction sector expanding by approximately 14% and the real estate activities sector increasing by 5.5% year-over-year.

Sales and Rental Market Trends
  • Total Sales Transactions: The first quarter of 2024 saw a slight decrease in total sales transactions, reaching 2,145 compared to 2,286 in Q1 2023, reflecting a 6.2% drop. The total transaction value amounted to AED 6.02 billion, a decrease of 18% from AED 7.34 billion in Q1 2023.
  • Off-Plan Sales: The off-plan market registered 1,331 residential sales transactions, a 20% decline from Q1 2023. The transaction value also decreased by 20%, reaching AED 4.28 billion.
  • Ready Sales: The existing/ready market saw an increase in transactions, with 814 transactions in Q1 2024, up by 30% from Q1 2023. However, the transaction value decreased by 13.4%, falling to AED 1.74 billion.
Top Areas in Demand
  • For Sale: Al Reem Island, Yas Island, Al Raha Beach, Saadiyat Island, and Masdar City are the most sought-after locations for apartments. Yas Island and Saadiyat Island showed substantial price gains.
  • For Rent: The top areas include Al Reem Island, Al Raha Beach, Khalifa City, Corniche Road, and Al Khalidiya. Rental prices have generally increased, with notable demand for one and two-bedroom apartments.

Dubai Market Overview

Economic Growth and Sector Performance

Dubai’s GDP grew by 3.53% in 2023, with significant contributions from the wholesale and retail trade, transportation, and financial services sectors. The real estate and construction sectors also showed robust growth, contributing nearly 14.5% to Dubai’s total GDP.

Sales and Rental Market Trends
  • Total Sales Transactions: Dubai witnessed a record-breaking quarter with 37,154 registered sales transactions, a 20% increase from Q1 2023. The total sales transaction value reached AED 109.85 billion, marking a 23.3% year-over-year increase.
  • Off-Plan Sales: Off-plan transactions reached 20,565, a 28.6% increase from Q1 2023, contributing 40.6% to the total transaction value.
  • Ready Sales: Existing/ready transactions totaled 16,589, up by 10.38% from Q1 2023, with a total value of AED 65.3 billion.
Top Areas in Demand
  • For Sale: Dubai Marina, Downtown Dubai, Jumeirah Village Circle (JVC), Business Bay, and Palm Jumeirah remain the most popular areas for apartment sales. Palm Jumeirah saw the highest return on capital gains for both apartments and villas.
  • For Rent: The most searched rental areas include Dubai Marina, Palm Jumeirah, and Downtown Dubai. Rental prices for apartments and villas have shown significant increases, driven by demand for premium locations and larger living spaces.

Investment Opportunities

The UAE’s real estate market continues to offer lucrative opportunities for investors. The ongoing economic diversification, government initiatives, and rising foreign direct investment are key factors driving growth. With significant developments in infrastructure and a thriving tourism sector, both Abu Dhabi and Dubai are set to maintain their positions as prime real estate markets in the region.

Conclusion

The first quarter of 2024 highlights a dynamic and growing real estate market in the UAE, with Abu Dhabi and Dubai leading the charge. Investors and stakeholders can look forward to continued growth and profitability in the coming quarters, supported by strong economic fundamentals and strategic initiatives aimed at fostering a robust real estate sector.

For more detailed insights and the latest updates on the UAE real estate market, visit VIP Brokerage.

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