The UAE's real estate market ended 2024 on a high, with Dubai's residential sales surging by 30% year-on-year, reaching 119 billion dirhams (approximately 32.4 billion dollars) in the fourth quarter.

The growth spanned all key sectors, including commercial, residential, retail, and industrial, fueled by strong economic performance, investor demand, and limited supply.

According to CBRE Middle East's market review, this growth aligns with broader regional trends, as reforms in Saudi Arabia, Qatar, and the UAE have made their property markets more attractive to global investors.

Notably, Saudi Arabia's recent policy allowing foreign investments in real estate in Makkah and Madinah adds to the evolving landscape.

In the UAE, residential transactions saw a notable uptick, with sales volumes in Dubai and Abu Dhabi reaching record highs in 2024, with Dubai's residential sector experiencing an 18% increase in apartment prices and a 20% rise in villa prices.

Abu Dhabi also saw growth, with apartment prices climbing by 11% and villa prices by 12%.

Office occupancy in both cities rose, with demand for premium office spaces driving rental price increases of up to 20%.

This surge in real estate activity was also supported by several new regulations in the UAE aimed at improving market transparency, including the Dubai Smart Rental Index and amendments to lending rules by the UAE Central Bank.

Despite rising costs, tenants in Dubai preferred renewing leases, with a 7% increase in rental contract registrations.

Economic growth also supported the market, with Abu Dhabi’s GDP expanding by 4.5% in the third quarter of 2024, driven by a 6.6% rise in non-oil sectors.

As the market continues to evolve, government actions are expected to play a key role in ensuring its long-term sustainability.