The UAE real estate market is poised for another strong year in 2024, following record-high performance and activity levels in 2023, according to top real estate analysts. CBRE’s UAE Real Estate Market Review Q4 2023 highlighted stable activity levels driving performance throughout the last quarter of 2023, setting a positive tone for the year ahead.
Taimur Khan, head of Research – Mena at CBRE in Dubai, expressed optimism about the resilience of the real estate sector despite global economic headwinds. Average residential prices in Dubai surged by 20.1% in the year ending December 2023, with significant growth observed in both apartment and villa prices. Similarly, Swapnil Pillai, associate director of Research at Savills Middle East, emphasized the favorable macroeconomic conditions supporting the UAE’s non-oil sectors, with the potential for continued growth in the real estate sector.
The office real estate market in Dubai experienced heightened demand in 2023, leading to substantial yearly rental increases, while residential transaction activity reached an all-time high. However, Abu Dhabi’s rental market saw a slowdown in the final quarter of 2023, with a decline in rental registrations. Looking ahead, analysts anticipate the completion of approximately 4,438 new residential units in Abu Dhabi, with significant delivery expected in Yas Island and Al Maryah Island. In Dubai, the residential rental market witnessed moderated growth throughout the year, with expectations for additional unit deliveries in 2024.
In conclusion, the UAE real estate market is poised for continued growth and resilience in 2024, supported by favorable macroeconomic conditions and strong demand across various sectors. As we look ahead, both buyers and investors can expect opportunities for diverse property types, including luxury residences, in prime locations. With record-high performance levels observed in 2023 and optimistic projections for the future, now is an opportune time to engage in the UAE real estate market. Whether seeking upscale properties or investment opportunities, Luxehaven Real Estate remains committed to providing exceptional service and expertise to meet the evolving needs of clients in the dynamic UAE real estate landscape.
