UAE Real Estate Market Sees Record Growth in 2024, Led by Dubai and Abu Dhabi
Dubai’s residential sales soar by 30 percent, driving growth across key sectors including commercial, residential, retail, and industrial.
The UAE's real estate market concluded 2024 with robust growth, marking a record year driven by rising demand, limited supply, and increasing prices across various sectors, including residential, commercial, retail, and industrial.
According to CBRE Middle East’s latest market review, Dubai's residential sales surged by 30 percent year-on-year in the fourth quarter, reaching 119 billion dirhams ($32.4 billion).
Property transactions spiked, and rental prices climbed across key sectors, spurred by strong economic expansion and heightened investor demand.
Matthew Green, head of research MENA at CBRE, highlighted the increasing foreign investor interest in the UAE market, which supported strong transactional volumes in both Dubai and Abu Dhabi.
In Abu Dhabi, residential transactions rose by 19 percent in Q4, while office occupancy rates in both cities hit 94 percent, leading to a 15-20 percent rise in rental prices.
The UAE government implemented several new regulations in 2024 to ensure long-term market sustainability, including the Dubai Smart Rental Index and changes to designated Freehold areas.
The Central Bank of the UAE also amended lending regulations to cool the off-plan market.
In addition, the country’s commercial real estate market was buoyed by economic growth, with Abu Dhabi's GDP expanding by 4.5 percent in Q3 2024, fueled by a 6.6 percent rise in non-oil sectors.
The increase in new business licenses and corporate expansions drove strong demand for premium office spaces.
In Dubai’s residential sector, apartment prices rose by 18 percent and villa prices by 20 percent, pushing average prices to 1,647 dirhams per sq.
foot for apartments and 2,024 dirhams per sq.
foot for villas.
In total, Dubai’s residential sales reached 434 billion dirhams in 2024, a 33 percent increase from the previous year.
Abu Dhabi also saw price increases, with apartment prices rising by 11 percent and villa prices climbing by 12 percent.
Despite rising costs, rental contract registrations in Dubai increased by 7 percent year-on-year, with renewal contracts rising by 9 percent and new registrations up by 5 percent, as tenants sought to avoid steep rent hikes.
According to CBRE Middle East’s latest market review, Dubai's residential sales surged by 30 percent year-on-year in the fourth quarter, reaching 119 billion dirhams ($32.4 billion).
Property transactions spiked, and rental prices climbed across key sectors, spurred by strong economic expansion and heightened investor demand.
Matthew Green, head of research MENA at CBRE, highlighted the increasing foreign investor interest in the UAE market, which supported strong transactional volumes in both Dubai and Abu Dhabi.
In Abu Dhabi, residential transactions rose by 19 percent in Q4, while office occupancy rates in both cities hit 94 percent, leading to a 15-20 percent rise in rental prices.
The UAE government implemented several new regulations in 2024 to ensure long-term market sustainability, including the Dubai Smart Rental Index and changes to designated Freehold areas.
The Central Bank of the UAE also amended lending regulations to cool the off-plan market.
In addition, the country’s commercial real estate market was buoyed by economic growth, with Abu Dhabi's GDP expanding by 4.5 percent in Q3 2024, fueled by a 6.6 percent rise in non-oil sectors.
The increase in new business licenses and corporate expansions drove strong demand for premium office spaces.
In Dubai’s residential sector, apartment prices rose by 18 percent and villa prices by 20 percent, pushing average prices to 1,647 dirhams per sq.
foot for apartments and 2,024 dirhams per sq.
foot for villas.
In total, Dubai’s residential sales reached 434 billion dirhams in 2024, a 33 percent increase from the previous year.
Abu Dhabi also saw price increases, with apartment prices rising by 11 percent and villa prices climbing by 12 percent.
Despite rising costs, rental contract registrations in Dubai increased by 7 percent year-on-year, with renewal contracts rising by 9 percent and new registrations up by 5 percent, as tenants sought to avoid steep rent hikes.
