UAE’s Property Market Boom Continues: Record Home Sales and Strong Performance Expected in 2024

The property market in the UAE continues to soar with record-breaking sales and prices on the rise. According to a recent report by property research firm CBRE, the average residential prices in Dubai surged by 20.1% in the year to December 2023, with apartment and villa prices seeing significant increases.

In 2023, a total of 39,190 residential units were delivered in the UAE, with a large portion of the new stock being completed in prime locations such as Meydan One, Downtown Dubai, and Business Bay. Looking ahead, CBRE predicts that 68,880 units will be handed over in 2024, with a focus on areas like Business Bay, District Seven, and Damac Lagoons.

On the hospitality front, Abu Dhabi and Dubai both saw a significant increase in international visitors in 2023. Abu Dhabi hotels welcomed 4.94 million visitors, a 29% year-on-year increase, while Dubai registered a 19.4% increase in international visitors compared to the previous year, totaling 17.2 million visitors.

The UAE’s hospitality sector saw a boost in key performance indicators (KPIs) such as average occupancy rate, average daily room rate (ADR), and revenue per available room (RevPAR). With the UAE’s status as a global tourism and business hub, coupled with relaxed visa regulations, the hospitality sector is expected to continue its growth trajectory.

Additionally, the industrial and logistics market in the UAE remained strong in 2023, despite limited stock availability. Rental contracts in Abu Dhabi and Dubai saw increases, indicating a positive outlook for the sector.

Overall, the UAE’s real estate market concluded a stellar year in 2023, with record-high performance and activity levels. With continued growth expected in key sectors such as hospitality, industrial, and logistics, the UAE’s property market shows no sign of slowing down in 2024.