Real Estate Market Report: UAE Market Set for Continued Growth in 2024
UAE Real Estate Market Booming in 2023, Asteco Report Shows
The real estate market in the UAE experienced tremendous growth in 2023 despite global challenges, according to a recent report by Asteco, a leading real estate services company in the region. The report predicts a positive trajectory for the market in 2024, driven by key strategic initiatives such as the UAE Tourism Strategy 2031 and ‘We the UAE 2031’.
Record-breaking figures were observed in terms of individual unit sales values, transactional volumes, and project launches in 2023, with the luxury market attracting significant attention. The report also highlighted a surge in transitioning annual leases into short-term rental properties, leading to heightened rental pressure in the market.
While Dubai remained a focal point of attention, other emirates like Abu Dhabi, Sharjah, and Ras Al Khaimah saw a substantial surge in new project launches. Aldar’s entry into the Dubai market with Haven and its expansion into Ras Al Khaimah were cited as examples of the vibrant market conditions prevailing in the UAE.
In Abu Dhabi, approximately 6,500 residential units were delivered in key investment zones, with notable projects launched on Yas Island, Al Reem Island, and Saadiyat Island. The market also witnessed dynamic shifts in rental rates, driven by a surge in new residential supply and increasing demand for high-quality properties.
Office rental rates in Abu Dhabi saw a notable surge, driven by a scarcity of prime office space and increased demand from expanding businesses. Sales prices for high-end properties also experienced increases, with prime villa communities showing high demand and notable sales price growth.
In Dubai, a flurry of new project launches led to a significant increase in residential supply. While residential rental rates continued to rise, rental growth slowed towards the end of the year. The commercial sector, however, saw a strong rebound with a notable surge in demand and pricing for Grade A office space.
Asteco anticipates the delivery of over 45,000 residential dwellings and approximately 500,000 sq. ft. of office space in Dubai in 2024. The report also highlighted positive market sentiment in Al Ain and the Northern Emirates, with stable-positive trajectories expected to continue into 2024.
Overall, the real estate market in the UAE is poised for continued growth in 2024, with new projects in the pipeline and sustained investor confidence in the region. Stay tuned for more updates on the UAE real estate market.
