UAE november | Dm Management LTD

UAE Real Estate Market Report - November 2024

Prepared for: Real Estate Professionals & Investors

Date: November 06, 2024

DM Management LTD

Executive Summary:

The UAE real estate market maintains its upward trajectory this month, fueled by economic stability and strategic government initiatives. Dubai and Abu Dhabi continue to lead the market, with strong demand for luxury properties and sustainable developments. Sharjah and Ajman offer attractive opportunities for investors seeking affordability and high rental yields. Ras Al Khaimah is emerging as a hotspot for tourism-driven real estate investment. While rising interest rates may pose a challenge, the overall outlook remains positive.

I. Market Pulse

Market Sentiment: Strong buyer activity persists across major cities, with high demand outpacing supply in certain segments.

Price Growth: Average property prices show consistent year-on-year growth:
- Abu Dhabi: +6%
- Sharjah: +2%
- Ajman: +3%
- Ras Al Khaimah: +12% (significant growth fuelled by tourism)
- Dubai: +8%

Rental Dynamics: Healthy rental yields continue to attract investors:
- Dubai: Average gross yield of 5-7%
- Abu Dhabi: Average gross yield of 6-8%
- Sharjah & Ajman: Competitive rental rates with yields of 7-9%
- Ras Al Khaimah: Rising rental demand, yields of 6-8% and growing.

Key Drivers: Expo City Dubai's success, anticipation for COP28, new visa regulations, and infrastructure development contribute to market momentum.

II. City Spotlights

Dubai:

Luxury Reigns: High-net-worth individuals drive demand for premium villas and penthouses in Palm Jumeirah, Emirates Hills, and Dubai Hills Estate.

Sustainability Focus: "Green" buildings and eco-friendly developments gain traction, attracting environmentally conscious buyers and tenants.

Hot Areas: MBR City (Mohammed Bin Rashid City) emerges as a prime investment destination with upscale projects and strategic location.

Investor Tip: Consider off-plan projects in Jumeirah Village Circle and Dubai South for potential high returns.

Abu Dhabi:

Government-Led Growth: Yas Island and Saadiyat Island flourish with cultural attractions and entertainment venues, driving residential demand.

Island Living: Al Reem Island gains popularity as a vibrant hub with a mix of luxury apartments, waterfront properties, and commercial spaces.

Cultural Investment: Properties near the Louvre Abu Dhabi and the Guggenheim Abu Dhabi offer strong appreciation potential.

Sharjah:

Affordability Advantage: Family-friendly communities and affordable housing options attract residents and investors to Al Nahda and Muwaileh.

Waterfront Living: Al Majaz waterfront development thrives with recreational facilities, attracting families and driving property values.

Rental Strategy: Properties near universities and schools offer excellent rental yields due to consistent demand.

Ajman:

Value Proposition: Ajman's affordability and proximity to Dubai make it an attractive alternative for budget-conscious buyers and renters.

Coastal Development: Ajman Corniche undergoes transformation with new hotels, restaurants, and residential towers, boosting investment potential.

Beachfront Focus: Affordable apartments and villas near the beach are highly sought-after.

Ras Al Khaimah:

Adventure & Eco-Tourism: Jebel Jais mountain activities and Al Marjan Island's luxury resorts drive demand for unique properties.

Upscale Retreat: Mina Al Arab attracts investors with its high-end resorts, marinas, and waterfront living.

High-Yield Potential: Properties offering stunning views and access to outdoor activities are primed for strong rental income.

III. Market Data & Insights

(Please note that due to the constantly changing nature of the real estate market, the data below represents approximate figures and trends based on available information as of November 30, 2024. For the most up-to-date and precise data, it's recommended to consult with local real estate agencies and property portals.)

Dubai Apartment Price Index (YoY & MoM)

(Source: Property Finder, REIDIN)

Key Takeaways:

Dubai apartment prices continue to show strong year-on-year growth, albeit at a slightly slower pace compared to previous months.
Month-on-month growth remains positive, indicating continued upward pressure on prices.

Abu Dhabi Villa Rental Yield by Area

(Source: Bayut, CBRE)

Key Takeaways:

Villas in prime locations like Saadiyat Island and Al Reem Island offer attractive rental yields.
Khalifa City offers the highest rental yields due to its affordability and growing popularity among families.

Sharjah vs. Ajman: Average Property Prices

(Source: Property Finder, Dubizzle)

Key Takeaways:

Sharjah and Ajman offer significantly more affordable property prices compared to Dubai and Abu Dhabi.
Ajman generally has lower prices than Sharjah, making it an attractive option for budget-conscious investors.

Ras Al Khaimah: Tourism Growth & Impact on Real Estate

Tourist Arrivals: Ras Al Khaimah has seen a significant increase in tourist arrivals in 2024, driven by its focus on adventure tourism and eco-tourism.

Hotel Occupancy: Hotel occupancy rates have also increased, indicating strong demand for accommodation.

Real Estate Impact: The growth in tourism is driving demand for holiday homes, rental properties, and investment properties in Ras Al Khaimah.

Key Areas: Al Marjan Island and Mina Al Arab are experiencing particularly high demand due to their luxury resorts and waterfront properties. (Source: Ras Al Khaimah Tourism Development Authority, Colliers International)

Key Takeaways:

The growth of tourism in Ras Al Khaimah is creating significant opportunities for real estate investors.
Properties with strong rental potential and those catering to tourists are likely to see high demand and appreciation in value.

IV. Looking Ahead

Monitor Interest Rates: Closely observe interest rate trends and their potential impact on buyer affordability and investment decisions.

COP28 Impact: Anticipate increased real estate activity in Dubai leading up to and following COP28, particularly in the sustainability sector.

Emerging Trends: Stay informed about new technologies, such as PropTech, and their influence on the UAE real estate market.

V. Data Sources

Property Finder
Bayut
Dubai Land Department
Abu Dhabi Department of Municipalities and Transport
JLL
CBRE

Disclaimer:

This report is for informational purposes only and should not be considered financial advice. Consult with a qualified professional before making any investment decisions.