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UAE Real Estate Market Review Q1 2024
May 14, 2024 15 Minute Read
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Key Takeaways:
- The UAE’s GDP is expected to record a growth of 3.9% in 2024, down from the 4.7% forecast published a quarter earlier.
- Occupier activity in Dubai’s office segment of the market remained robust over the first quarter of the year. Data from the Dubai Land Department revealed that the total number of rental registrations increased by 35.8% compared to the year prior, reaching 46,850.
- Given the increased level of occupier demand, the average occupancy rate in Dubai’s office market increased from 90.1% in Q1 2023 to 91.3% in Q1 2024.
- In Abu Dhabi’s occupier market, the increased occupancy levels have underpinned growth in rental rates, where in the year to Q1 2024, average Prime, Grade A, and Grade B rents registered average growth rates of 6.6%, 3.4%, and 9.7%, respectively.
- Abu Dhabi’s average apartment prices increased by 4.3% in the year to Q1 2024, and average villa prices increased by 2.3%.
- Price growth has continued to accelerate in Dubai’s residential market in the first quarter of 2024, with average prices increasing by 20.7% in the year to March 2024, up from 20.3% in February 2024. Throughout this period, average apartment prices increased by 20.4%, and average villa prices increased by 22.1%.
- In the first quarter of 2024, the total transaction volumes in Dubai’s residential market reached 35,310. This is the highest total ever recorded in the first quarter of the year, marking an increase of 20.5% from the year prior. Over this period, off-plan transactions rose by 23.9%, and secondary market transactions rose by 15.2%.
- The UAE’s hospitality segment continues to register strong performance levels on the back of robust visitation. Year-on-year, in the year to date to March 2024, the average occupancy rate recorded a marginal increase of 0.9 percentage points.
- Given the supply-and-demand imbalance witnessed in the retail market, rents in both Abu Dhabi and Dubai continued to register increases. In the year to the first quarter of 2024, average retail rents in Abu Dhabi grew by 14.7%, and in Dubai, average rents rose by 10.5%.
- Given the marked increase in demand, rental performance in both Abu Dhabi and Dubai’s industrial and logistics markets has significantly improved. In the first quarter of 2024, average rents in Abu Dhabi and Dubai registered year-on-year increases of 5.1% and 14.3%, respectively.
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