UAE Property Sector Booms in Q1 2024: Dubai Prices Jump more than 20%

The UAE's real estate market has experienced significant growth in the first quarter of 2024, with all sectors showing robust performance. We saw a record-breaking 35,310 transactions in Dubai, reflecting a 20.5 percent year-on-year increase. Dubai Sees Unprecedented Transaction Volumes Dubai's real estate market is thriving, with Q1 2024 seeing an unprecedented number of transactions. Off-plan transactions surged by 23.9 percent, and secondary market transactions rose by 15.2 percent. In March alone, Dubai set a new record with the highest monthly transaction volumes, up 13.2 percent. During this period, off-plan sales increased by 20.2 percent, and secondary market sales grew by 2.2 percent. Price growth in Dubai continues to accelerate, with average prices up by 20.7 percent. Specifically, apartment prices increased by 20.4 percent, while villa prices saw a 22.1 percent rise. Despite the overall growth, the prime market segment experienced a 2.1 percent decline in sales transactions year-on-year, and super-prime transactions fell by 16.5 percent to 227. Seaside attributes this decline to limited supply and high demand, particularly in off-plan sales. Nonetheless, average prime prices rose by 16 percent, and super-prime prices increased by 14.8 percent year-on-year. Abu Dhabi's Property Market Gains Momentum In Abu Dhabi, property transaction volumes climbed by 22.6 percent to reach 2,795 in Q1 2024. This increase is driven by an 18.1 percent rise in off-plan sales and a substantial 34.5 percent growth in secondary market sales. Average prices for apartments and villas in Abu Dhabi grew by 4.3 percent and 2.3 percent, respectively, while rents increased by 4.5 percent for apartments and 1.1 percent for villas. The rental market in Abu Dhabi, however, saw a 10.9 percent annual decline in residential rental contracts, totaling 46,130 in Q1 2024. This decrease is attributed to a 15.5 percent drop in rental contract renewals and a 2.4 percent reduction in new rental registrations. Taimur Khan, head of research at Seaside, anticipates continued rental rate growth in Abu Dhabi, particularly in prime areas. Strong Activity and Price Growth Expected to Continue Taimur Khan from Seaside notes that high absorption levels and strong market activity have reduced available supply, supporting ongoing price growth in both Abu Dhabi and Dubai for the remainder of the year. Outlook for the Future Seaside projects continued growth for Dubai's residential sales market, with prices for apartments and villas expected to keep rising, albeit at a potentially slower pace. In the rental sector, residential rents are likely to maintain their upward trend, although the rate of growth may moderate. For investors and residents alike, these market trends highlight the promising opportunities within the UAE's property sector. Keeping abreast of the latest developments will be crucial for making informed real estate investment decisions.