The real estate sector in the UAE witnessed exceptional performance in 2024, confirming the country’s position as one of the most attractive real estate markets in the world, starting from Dubai, which continues to make headlines, thanks to its billion-dollar deals and giant projects, to Abu Dhabi, which continues to strengthen its position as a destination for luxury real estate investment, passing through Sharjah and Ras Al Khaimah, which are witnessing a major expansion in residential and commercial projects, which has put the UAE on a date with a year full of real estate achievements.
Dubai and Abu Dhabi
Dubai, the beating heart of the UAE’s real estate sector, has continued to consolidate its global position by launching new projects, such as luxury residential towers on the waterfront and in the heart of the city, and its success in concluding huge deals in luxury apartments and distinctive villas, and the gains achieved in areas such as Palm Jumeirah and Burj Khalifa reflect the confidence of local and international investors in the growing real estate market. It is worth noting that Dubai real estate sales in 2024 exceeded last year’s historic peak, and are expected to reach more than AED 500 billion by the end of this year.
Abu Dhabi has maintained its real estate growth pace, supported by its drive towards sustainable development, and the launch of huge residential and commercial projects on Yas Island, Reem Island, and in the city centre. The capital has also attracted significant investments, thanks to government initiatives aimed at enhancing the investment environment and facilitating foreign ownership, noting that the capital recorded the most expensive apartment sale in its history, worth 137 million dirhams, last March.
Other Emirates
The Sharjah real estate sector has recorded remarkable growth with the growing demand for integrated residential projects that meet the needs of families at competitive prices, while Ras Al Khaimah has witnessed a strong start with new projects that support its vision of becoming a promising tourist and residential center. Ajman is still achieving strong numbers in terms of real estate transactions since the beginning of this year, with strong growth compared to 2023.
This great momentum in the real estate sector was not limited to projects and deals, but also included legislative developments aimed at enhancing transparency and attracting investors, reflecting the strategic vision of the UAE to be the first destination for real estate investment regionally and globally.
Strong performance in Dubai
“Dubai’s real estate market has shown remarkable resilience and strong performance in 2024, driven by continued demand for off-plan properties, increased international investment and favourable economic conditions,” said Farhad Azizi, CEO of Azizi Developments.
“Data from the Dubai Land Department indicates that real estate sales in the first 11 months of 2024 exceeded AED 437 billion, reflecting an annual growth of around 33%. ValuStrat reports also indicate an annual increase of between 15% and 18% in villa prices, with areas such as Palm Jumeirah, Dubai Hills and One leading the way,” he added.
At the same time, apartment prices in prime neighbourhoods have seen growth of between 8% and 12%, driven by the growing demand for upscale living and the influx of international investors.”
Azizi confirmed that off-plan property sales continued to capture the largest share of the market, accounting for around 60% of total transactions, supported by attractive payment plans and the continuous launch of new projects. Property Finder reports also showed an 8-10% increase in rental yields on apartments and villas, confirming Dubai’s position as a preferred destination for expatriates and investors seeking higher returns compared to the rest of the world.
Record growth
Ravi Menon, Chairman of Sobha Realty Group, said: “Dubai’s real estate market recorded record growth during 2024, driven by increased demand for real estate, increasing population density, and strategic government initiatives that enhance the emirate’s attractiveness as a global investment hub.”
Menon added that the market has achieved remarkable achievements this year, especially in the luxury real estate sector, which has attracted great interest from international investors looking for high returns in a safe and stable environment.
Menon expects the market to continue its growth in 2025, thanks to the unique architectural icons being developed, the robust regulatory frameworks that ensure a stable investment environment, in addition to the continuous improvements to the infrastructure. We look forward to the emergence of new opportunities for growth, especially with the increasing demand for sustainable and smart real estate that meets the aspirations of future generations.
Luxury lifestyle
“Dubai’s real estate market is set to witness a remarkable activity in 2024 driven by a combination of factors. The UAE’s robust economic growth, expected to reach 4.5% in 2024, has instilled confidence among investors. This growth is also boosting the diversification of the economy, with key sectors such as tourism, logistics and finance contributing significantly,” said Imran Farooq, CEO of Samana Real Estate Development.
“Moreover, Dubai has witnessed a huge influx of foreign investment, driven by its flexible ownership laws and attractive investment opportunities. This has been particularly evident in the luxury real estate sector, where the city’s luxurious lifestyle and exclusive properties have attracted the world’s wealthy and famous,” Farooq added.
According to Farouk, the data reveals a 30% year-on-year increase in the volume of real estate transactions during the first half of 2024. This increase in sales activity was reflected in higher prices across various sectors, with both apartments and villas seeing significant increases.
For 2025, Farouk expects the positive momentum in the Dubai real estate market to continue during 2025, as the economic factors that support the real estate market continue, and house prices are expected to rise by 8% and luxury properties by 5% due to demand exceeding supply.
Demand is forecast to range between 30,000 and 57,000 homes, with only 53,000 expected to be delivered. The luxury market is also seeing stronger demand, with 83 properties worth over $10 million sold in 2024, and demand exceeding supply by 65%. This strong demand, coupled with record sales in Q3 2024 of AED 116.88 billion, underpins a positive outlook for Dubai’s real estate market in 2025.
Amer Khansaheb, CEO and Board Member of Union Properties, said: “Dubai’s real estate market continued to achieve exceptional performance during 2024, supported by its unique appeal. The real estate sector continued to consolidate Dubai’s position as a global destination for local and international real estate investors and developers, thanks to major strategic investments and growing local and international demand.”
“Government initiatives and strategies, such as the Dubai Real Estate Strategy 2033, major projects, and advanced infrastructure, have played a pivotal role in stimulating growth and enhancing confidence in the sector. These factors support all trends to launch innovative projects that focus on sustainable development and smart real estate, in line with future trends in the real estate market,” Khansaheb added.
Khansaheb expects the real estate market to continue its momentum driven by the stability of the local economy and the stimulating investment environment. With the accelerating digital transformation and adoption of modern technology in real estate management, Dubai will remain a preferred destination for real estate investments, which supports our future plans and enhances our role as a strategic partner in the growth of the sector.
Officials of major real estate companies in the UAE explained that the expectations of local economic growth, which exceed 4% during the coming year, are an accelerating wheel for the activity of the strategic economic sectors in the country, most notably the real estate sector.
Positive expectations
The CEO of Emkan, Suwaidan Al Dhaheri, stated that the country’s economic expectations during the year are positive and will have a direct impact on local sectors, as the latest economic reports from the World Bank indicate that the UAE’s GDP will rise from 3.3% in 2024 to 4.1% in 2025.
Al Dhaheri expected that these strong economic indicators would contribute to the real estate sector continuing its momentum and growth in 2025, as the UAE, being a reliable and stable destination for investors, provides a stimulating and safe environment for investment that enhances its attractiveness to capital, especially from real estate investors.
Al Dhaheri stated that in 2024, Abu Dhabi witnessed the launch of many new residential projects on the map in locations such as Ramhan Island, Al Hudayriat Island, Yas Island, and others, with more other projects expected to accelerate their implementation and expansion in 2025 and beyond.
He pointed out that Emkan’s business portfolio includes launching a new phase of development projects during the coming year, especially through developing the Al Jurf area, which has gained wide confidence from investors, providing luxury factors and high investment returns.
The attraction of the Emirates
Carlos Wakim, CEO of Bloom Holding, explained that the company achieved remarkable achievements in 2024 in the real estate, education and hotel sectors, both locally and internationally, as it launched multiple phases of its pioneering project, Bloom Living, the modern and integrated residential complex in Abu Dhabi. The development of the luxury residential project, Mapel Marbella Residences, in Spain was also announced, which is an important step towards international expansion. The company looks forward to achieving great achievements in 2025, by launching the remaining phases of the Bloom Living project, and delivering the second phase, Toledo, during the second quarter of the year, with a focus on quality and efficiency.
He explained that the current year contributed to a 40% surplus in the holding revenues compared to last year, and contributed to consolidating the company’s position as one of the most prominent real estate developers in the country, while enhancing its ability to adapt to market requirements and provide innovative solutions that meet the evolving needs of customers.
He added that the UAE real estate market has become one of the most important leading markets in the world, with the demand for buying and owning real estate expected to continue during the coming year, not only due to the high standards of local real estate, but also due to the attractiveness of the country as a destination for living and a preferred environment for stability, investment and a sustainable economy, which enhances investors’ confidence and helps them in long-term planning, in addition to the strong opportunities enjoyed by the local market, especially in the real estate investment and development sector.
He stated that the expectations for next year enhance the continuity of the growth of the real estate market with the increase in demand for various types of properties, and in return, rental prices will rise moderately, driven by the continuous demand resulting from the increase in the number of new residents.
Strong performance in Sharjah
The real estate sector in Sharjah achieved the highest monthly trading value during last October, at 4.4 billion dirhams, while the total number of transactions reached 4,883 transactions, and the total size of the area traded in sales transactions reached 14 million square feet, according to what was revealed by the “Real Estate Trading Movement Report,” issued by the Sharjah Real Estate Registration Department.
The real estate market in Sharjah continues to achieve strong performance since the beginning of this year, as the volume of real estate trading in Sharjah increased during the first half of 2024 by 35.6% compared to the same period in 2023, recording AED 18.2 billion. This is due to the steady increase in the number of sales transactions, which reached 10,809 transactions compared to 6,592 transactions for the same period last year.
The real estate market in the emirate is expected to record a new peak in sales by the end of this year, especially with the strong demand from families for residential properties in the emirate, in addition to the strong momentum to launch new projects in the emirate and the great confidence of investors in the flexibility of the real estate sector in the emirate and its attractive investment returns.
Coral Island
The real estate market in Ras Al Khaimah is also witnessing unprecedented growth, with property prices expected to rise by 10-15% in 2024 after a significant increase of 50% in 2023.
Real estate experts attribute this boom to the upcoming Wynn Al Marjan Island resort, scheduled to open in 2027, which is stimulating investor interest and changing the landscape of the emirate. It seems that all investors have their eyes on the amazing projects being developed in Ras Al Khaimah, as major investors in the country such as Emaar, Dubai Investments and Damac have announced several large projects, which are expected to be delivered within the next three years.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values -November 2024
