UAE Real Estate Set to Thrive as Economy Forecasts 4% Growth in 2024
UAE GDP reached AED1.68tn ($436bn) in 2023, growing by 3.6 percent
Non-oil GDP grew by 6.2 percent, reaching AED1.25tn ($408bn)
World Bank forecasts 3.9% GDP growth for UAE in 2024, rising to 4.1% in 2025
IMF expects 4% growth in 2024, driven by tourism, construction, manufacturing, and financial services
UAE ranked 5th globally in real GDP growth index
Foreign direct investment reached a record $23bn in 2022
UAE ranks 14th globally in attracting professional talent
Non-oil sectors contribute over 70% of UAE's GDP
Economic diversification focuses on renewable energy, technology, financial services, tourism, construction, and real estate.
UAE expected to lead Gulf and Arab countries in economic performance in 2024
The UAE's real estate sector is poised for significant growth in 2024, riding on the back of robust economic forecasts and diversification efforts. Property investors and homebuyers can expect a thriving market with ample opportunities as the country's economy expands.
According to recent projections, the International Monetary Fund (IMF) estimates that the UAE's GDP will grow by 4% in 2024. This growth is expected to be driven by strong activity in key sectors, including tourism, construction, manufacturing, and financial services. The World Bank's forecast is similarly optimistic, predicting a 3.9% GDP growth for 2024 and a further increase to 4.1% in 2025.
The UAE's economic resilience is evident in its 2023 performance, with GDP reaching AED1.68tn ($436bn) and growing by 3.6%. Notably, the non-oil GDP grew by an impressive 6.2%, totaling AED1.25tn ($408bn). This performance has positioned the UAE's economy fifth globally in the real GDP growth index, showcasing its strength and stability.
The UAE's strategic focus on diversification is a key factor in its economic success. Sectors such as renewable energy, technology, financial services, tourism, construction, and real estate collectively contribute over 70% to the country's GDP. This shift from oil dependency has created a more balanced and sustainable economic landscape, benefiting the real estate market.
The UAE's attractiveness to global investors and talent is another crucial element driving growth. In 2022, the country achieved a record $23bn in foreign direct investment, reaching an all-time high. Furthermore, the UAE ranks 14th globally in attracting professional talent, according to the Boston Consulting Group. This influx of investment and skilled professionals is expected to fuel demand in the property market, particularly in major urban centers like Dubai.
As we move through 2024, the UAE is anticipated to lead Gulf and Arab countries in economic performance. This leadership position, combined with the government's strategic initiatives and forward-looking policies, creates a favorable environment for real estate investment and development.
For property buyers and investors, these economic indicators signal a robust market with potential for strong returns. As the UAE continues to diversify and grow, the real estate sector is likely to benefit from increased demand, rising property values, and new development opportunities across various market segments.