UAE Real Estate Market Report - December 2024
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Key Takeaways
Market Growth: The UAE real estate market witnessed a 12% YoY growth in December 2024, with total transaction values surpassing AED 2.6 trillion.
Dubai: Residential property prices surged 21% YoY, fueled by increased interest in luxury and affordable housing segments.
Abu Dhabi: A steady 6.2% YoY growth in apartment prices and 9.3% in villa prices, with AED 55.5 billion worth of transactions recorded.
Sharjah: Transaction values grew 28% YoY, with a 34% increase in volume, showcasing a rise in investor activity.
Northern Emirates: Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain experienced 2%-5% growth in transactions, supported by infrastructure and affordable housing projects.
Comparative Analysis: December 2023 vs December 2024
Investor Interest: Strong demand for properties below AED 1 million and premium assets above AED 30 million across Dubai and Abu Dhabi.
Trends: Sustainability-focused developments and digital innovation are reshaping the real estate landscape, enhancing investor confidence and operational efficiency.
Market Overview
The UAE real estate market continued to grow robustly in 2024, supported by economic diversification, infrastructure development, and government reforms. Property transactions and prices have shown significant improvement compared to 2023, making the UAE one of the most dynamic real estate markets globally.
Market Pulse: Price Growth & Rental Dynamics
The UAE real estate market in December 2024 exhibited a balanced growth trajectory, with notable increases in property values and rental rates reflecting strong demand in across all emirates.
Factors Driving Market Pulse
1. Economic Recovery: Post-pandemic economic growth and diversification efforts have boosted investor confidence.
2. Population Growth: A growing expatriate population has increased rental demand across all emirates.
3. Tourism & Infrastructure: Tourism-driven development in Ras Al Khaimah and Fujairah is creating demand for rental properties and new developments.
4. Government Policies: Incentives like the Golden Visa and 100% foreign ownership continue to attract investors and residents, influencing both property prices and rental yields.
City-Wide Analysis
Dubai
Residential Market:
Dubai recorded a 21% YoY increase in residential property prices, with a significant rise in high-value transactions.
Luxury Segment: 24 transactions exceeding AED 30 million were completed in November 2024 alone, reflecting strong demand from high-net-worth individuals.
Affordable Housing: Sales of properties below AED 1 million increased by 8% YoY, appealing to middle-income investors and end-users.
Key Areas: Palm Jumeirah, Downtown Dubai, and Business Bay led the growth in both price and rental rates.
Rental Market:
Rental prices increased by 15% YoY, with popular areas like Dubai Marina witnessing a sharp 18% increase in rents.
Commercial Real Estate:
Occupancy rates for office spaces remain high, with Abu Dhabi at 94% and Dubai at 93% in Q3 2024, driven by strong tenant demand for quality spaces.
Prime office rents grew 7% YoY, with DIFC and Downtown Dubai leading the market.
New Developments:
Approximately 28,700 residential units ( 9000 Villas and 19700 Apartments) were delivered in 2024, focusing on integrated communities like Dubai Hills Estate and Jumeirah Village Circle.
Abu Dhabi
Residential Market:
The capital saw consistent growth, with apartment prices increased by 6.2% YoY, while villa prices grew by 9.3% YoY, driven by demand for family-friendly properties.
Luxury developments in Saadiyat Island and Yas Island continued to attract both local and international buyers.
Key Areas: key locations include Yas Island, Al Reem Island, and Saadiyat Island.
Rental Market:
High rental yields of 7.2% make Abu Dhabi attractive for long-term investors.
Commercial Market:
Office occupancy reached 94%, supported by government initiatives to attract foreign businesses.
New free zones and incentives further boosted demand for commercial properties.
Market Performance:
Real estate transactions totaled AED 55.5 billion, marking a 10% YoY increase.
Transaction Volume:
Real estate transactions reached AED 55.5 billion in 2024, marking a 10% increase YoY.
Sharjah
Market Activity:
Sharjah’s real estate market saw a 28% increase in transaction value and a 34% rise in transaction volume YoY.
Popular areas: Al Majaz, Al Nahda, and Muwailih, known for their affordability and connectivity.
Rental Market:
Average rents rose by 5% YoY, reflecting consistent demand from expatriates and families.
Ajman
Residential Market:
Property transactions grew by 5% YoY, with demand centered on affordable apartments and villas.
Popular areas: Al Rashidiya and Al Nuaimiya.
Infrastructure Developments:
Recent infrastructure projects, such as road network expansions, have boosted investor confidence.
Fujairah
Market Stability:
Fujairah’s real estate market remained stable, with property prices rising by 4% YoY.
Popular areas: Dibba and Al Faseel.
Investment Appeal:
The development of eco-tourism projects has enhanced Fujairah’s attractiveness to investors seeking long-term opportunities.
Ras Al Khaimah
Market Activity:
Real estate transactions increased by 5% YoY, supported by the emirate’s free zones and tourism sector.
The emirate’s focus on eco-tourism and industrial development has bolstered investor confidence.
Popular developments: Al Hamra Village and Mina Al Arab.
Umm Al Quwain
Affordable Market:
Property transactions rose 2% YoY, with affordable housing developments attracting interest from middle-income buyers.
Development Projects:
Proximity to Dubai and Sharjah continues to drive growth, supported by ongoing infrastructure enhancements.
Comparative Analysis: December 2023 vs. December 2024
Investment Opportunities
1. Luxury Properties:
High demand and rising prices in Dubai and Abu Dhabi.
Areas of interest: Palm Jumeirah, Saadiyat Island.
2. Affordable Housing:
Consistent demand in Sharjah, Ajman, and Ras Al Khaimah.
Units priced below AED 1 million are seeing growing interest.
3. Eco-Friendly Developments:
Sustainable projects in Fujairah and Ras Al Khaimah attract eco-conscious investors.
Emerging Trends
PropTech Adoption: Digital tools are enhancing market transparency and efficiency.
Sustainability Focus: Green building certifications and energy-efficient developments are in demand.
Government Reforms: Policies such as the Golden Visa and 100% foreign ownership continue to attract global investors.
Conclusion
The UAE real estate market demonstrated strong growth in December 2024, with significant gains across all seven emirates. Dubai and Abu Dhabi lead the market in luxury and commercial real estate, while Sharjah and the northern emirates continue to attract buyers with affordable options. With government reforms, infrastructure projects, and a growing focus on sustainability, the market is set to remain an attractive destination for investors and realtors alike.
Sources
JLL MENA Real Estate Insights 2024
Knight Frank Middle East Market Reports
Department of Municipalities and Transport, Abu Dhabi
Disclaimer:
This report is for research and educational purposes only and does not constitute investment advice. Readers should conduct their own due diligence before making any investment decisions.
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