Dubai Property Market Poised for Robust Growth in 2024
Around 35,000 new residential units are expected to be delivered in Dubai by the end of 2024.
In Q1 2024, around 10,000 units were delivered in Dubai and 1,600 in Abu Dhabi.
Dubai's residential sales transactions saw a 20% increase in volume compared to Q1 2023.
Sale prices and rentals in Dubai recorded a 21% annual increase in Q1 2024.
Apartment rentals in Dubai experienced a 22% annual surge, surpassing villa rental growth of 14%.
Villa sale prices in Dubai saw a notable 22% year-on-year uplift.
In Abu Dhabi, sales prices increased by an average of 7%, while rental rates rose by 4%.
Dubai welcomed 3.67 million visitors in January and February 2024, reflecting an 18% increase year-on-year.
Average daily rates (ADR) in Dubai's hospitality sector grew by 5%, reaching $226 in Q1 2024
Abu Dhabi's hotel occupancy rate was 81% for YT March 2024, with ADR increasing by 8% year-on-year to $161.
Dubai's real estate market is poised for a robust year in 2024, with the delivery of around 35,000 new residential units expected by the end of the year. The continued buoyancy in investor demand is driving this surge in housing supply, fueled by innovative product offerings, attractive payment options, and recent updates to the golden visa requirements.
The first quarter of 2024 saw a strong start, with approximately 10,000 units delivered in Dubai and 1,600 in Abu Dhabi, demonstrating the UAE's robust residential sector growth. Developers are shifting their focus towards secondary locations and properties within the Dh2 million price range, enabling buyers to meet the threshold for Golden Visa eligibility.
Dubai's residential sales transactions recorded a 20% increase in volume compared to last year's period, reflecting the market's continued strength. Sale prices and rentals in the emirate saw a remarkable 21% annual increase, with apartment rentals experiencing a considerable 22% surge, surpassing the growth rate of villa rentals at 14%. Demand for villas remained robust, with sale prices witnessing a 22% year-on-year uplift.
In Abu Dhabi, sales prices increased by an average of 7%, while rental rates rose by 4% during the same period. Similar to Dubai, apartments in Abu Dhabi recorded higher rental hikes of 5% compared to villas. However, in terms of sale prices, villas in Abu Dhabi grew by 9% year-on-year.
The UAE's hospitality sector is also witnessing strong growth, driven by healthy tourism activity. Dubai added 2,000 new hotel keys in the first quarter, resulting in a total stock of 155,000. The city welcomed 3.67 million visitors in January and February, reflecting an 18% increase compared to the previous year. This robust tourism demand helped sustain a 5% growth in average daily rates (ADR), reaching $226, resulting in a 5% increase in revenue per available room (RevPAR).
Abu Dhabi's hotel performance has been influenced by robust tourism demand, a diverse calendar of events, and improved connectivity. For YT March 2024, the city's occupancy rate was recorded at 81%, and ADR increased by 8% year-on-year to $161, leading to a significant 17% growth in RevPAR compared to the same period last year.