Market Overview: A Dynamic UAE Property Landscape

Asteco’s Q3 2024 report presents a thriving UAE real estate market with sustained growth across Abu Dhabi, robust performance in Dubai, and increasing activity in the Northern Emirates. Abu Dhabi remains on a growth trajectory, buoyed by new developers entering the market and a strong pipeline of planned developments. Dubai’s real estate sector thrives due to its government’s proactive efforts to enhance physical, social, technological, and legal infrastructure, ensuring market resilience and stability amid global challenges.

Abu Dhabi Real Estate Performance

During Q3, approximately 950 residential units were delivered across Abu Dhabi, notably in Noya on Yas Island, Jubail Island, and Al Raha Beach. This quarter also witnessed announcements for over 2,560 new units as developers pushed forward ambitious projects. A partnership between Aldar Properties and Mubadala Investment Company aims to bring four new joint ventures focused on owning, managing, and developing assets, bolstering future supply. Asteco expects further project announcements throughout 2024, reflecting strong investor confidence and strategic planning.

The residential rental market in Abu Dhabi maintained positive momentum, supported by strong demand. Landlords enjoyed higher leverage, with apartment rental rates increasing by an average of 1% quarterly and 4% annually, with premium properties experiencing 2% to 5% growth. The villa segment also performed well, with Saadiyat Island, Khalifa City, and MBZ City leading with up to 5% quarterly rent hikes. Villa rents rose by an average of 2% quarterly and 4% annually, while office rents saw increases of 3% and 8%, respectively.

Q3 2024 recorded approximately 1,850 residential transactions, with a marked preference for ready properties, contributing to 1,070 sales. Apartment sales prices maintained their upward trajectory, showing 4% quarterly and 8% annual growth. Key areas recorded price hikes of over 10% year-on-year. Villa sales prices also rose, posting quarterly and annual increases of 2% and 4%, respectively, while prime communities on Saadiyat Island achieved over 25% growth year-on-year. High absorption rates in recently launched off-plan projects underline their enduring appeal and strong demand.

Dubai Real Estate Highlights

Q3 saw a surge in Dubai’s residential market, with around 8,100 units entering the market, predominantly apartments. Anticipated handovers in Q4 include 14,900 residential units (11,800 apartments and 3,100 villas), though some completions may extend into 2025. New office completions were limited, yet large-scale Grade A projects were launched, emphasizing the sector’s growth potential.

Dubai’s rental market witnessed continued upward trends, with apartment rents increasing by 3% and villa rents by 2% quarterly, partly due to RERA’s revised rental index. Apartment and villa sale prices rose 3% and 4% quarter-on-quarter, driven by a surge in off-plan activity fueled by attractive developer payment plans. Innovative schemes, including 80/20 and 75/25 payment structures, cater to varying market segments, although they may challenge lower-income buyers seeking larger homes.

Dubai’s office sector exhibited substantial growth, with prices increasing by 5% quarterly and 21% annually, propelled by robust economic conditions and limited Grade A and B+ property supply.

Al Ain and Northern Emirates Market Trends

In Q3, many Dubai residents moved to the Northern Emirates, drawn by larger unit sizes and affordability, though rental rates there also rose. Northern Emirates’ sales markets maintained strong momentum, with rising prices across various property types. Al Ain also experienced a positive quarter, with rental rate increases of 2% to 5% for residential renewals and steady 2% quarterly growth in key villa communities. Mature apartment buildings recorded modest rental increases, while office rental rates rose by an average of 4% quarter-on-quarter and year-on-year.

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About Asteco
Founded in 1985, Asteco is a leading full-service real estate company renowned for its expertise, transparency, and value-driven approach. Leveraging deep regional insight and global best practices, Asteco has shaped the UAE’s property market with major real estate milestones. The company offers a range of services, including Valuation Advisory, Building Consultancy, Property Management, and Sales & Leasing, all driven by innovation, technology, and a strong commitment to client satisfaction.