UAE Real Estate Market Review Q2 2024

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UAE Real Estate Market Review Q2 2024

The UAE real estate market continues to demonstrate resilience and dynamism in Q2 2024, supported by robust economic growth, a thriving residential market, and increased leasing and transactional activity. As your trusted partner in Dubai real estate, Bait Al Hayat Properties brings you an in-depth analysis of these market trends and how they can guide your next investment decision.

1. Economic Growth Supporting Real Estate Development

The UAE’s GDP is forecasted to grow by 3.8% in 2024, ensuring a stable backdrop for real estate investment and development. This steady growth reinforces the UAE's position as a hub for international investors and high-net-worth individuals seeking luxury and high-yield properties.

2. Booming Rental Market in Dubai and Abu Dhabi

  • Dubai Leasing Market: Leasing activity surged in Dubai during Q2 2024, with rental registrations increasing by 38.4% year-on-year, reaching 41,495.
  • Abu Dhabi Office Market: Office rentals in Abu Dhabi saw year-on-year rent growth across segments: Prime (+9.1%), Grade A (+7.4%), and Grade B (+14.5%).
  • Retail Sector Growth: Retail rents rose by 6.0% in Dubai and 3.6% in Abu Dhabi, driven by robust consumer spending and growing foot traffic.

3. Exceptional Residential Market Performance

Dubai’s residential market has been a shining star:

  • Price Increases: Average residential prices in Dubai soared by 21.3% year-on-year to June 2024, with apartments up 20.7% and villas witnessing a remarkable 24.3% growth.
  • Record Transactions: The first half of 2024 saw 73,618 residential transactions in Dubai, marking a 27.6% increase compared to last year. Off-plan sales surged by 41.0%, while secondary market sales grew by 8.2%.
  • Abu Dhabi Residential Market: Apartment prices increased by 6.2% year-on-year, and villa prices rose by 3.9%, reflecting steady demand in the capital.

4. Growing Demand for Industrial and Logistics Spaces

The UAE’s strategic location continues to bolster the industrial and logistics sectors. In Q2 2024:

  • Dubai: Average rents grew by 10.6% year-on-year, driven by e-commerce and trade.
  • Abu Dhabi: Average rents rose by 4.7% year-on-year, reflecting growing demand for warehousing and distribution centers.

5. Hospitality Sector: A Pillar of Strength

The UAE’s hospitality segment remains strong, with the average occupancy rate increasing by 1.7 percentage points year-on-year to June 2024. This growth underscores the nation’s appeal as a global tourism destination.

Why Invest Now?

The UAE’s real estate market offers unparalleled opportunities for investors:

  • High ROI in Dubai’s residential properties.
  • Diverse options from luxury apartments to spacious villas.
  • Strong performance in rental, retail, and industrial sectors.
  • Robust infrastructure and an investor-friendly environment.
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