The UAE’s residential market appeared robust in the first quarter of 2024, with prices, transaction volumes, and rents all on the rise. In Dubai, prices increased by an average of 20.7% in the year leading up to March 2024, with apartment prices increasing by 20.4% and villa prices by 22.1%. Transaction volumes in Dubai reached record highs in March 2024, with off-plan sales and secondary market sales both increasing significantly. The total transaction volumes for the first quarter in Dubai were also the highest ever recorded, with off-plan transactions increasing by 23.9% and secondary market transactions rising by 15.2%.
Abu Dhabi also saw an increase in transaction volumes during the first quarter, with a 22.6% rise compared to the previous year. Average apartment and villa prices in Abu Dhabi increased by 4.3% and 2.3% respectively. According to CBRE Middle East, the strong demand in both Abu Dhabi and Dubai is expected to continue to drive price growth throughout the rest of the year. Rental rates are also expected to continue to rise in prime areas of Abu Dhabi, while rental rates in Dubai are expected to increase at a slower rate than before.
In Dubai, average apartment prices were Dh1,486 per square foot, while average villa prices were Dh1,776 per square foot. Average villa sales rates are currently 22.9% higher than they were in 2014. Rental growth has gained momentum in 2024, with average residential rents in Dubai increasing by 21.2% year-on-year. Data from the Dubai Land Department shows an increase in rental registrations, with the delivery of 6,526 units in the first quarter of the year. However, it is expected that only a limited portion of the upcoming stock will be delivered as planned.
Abu Dhabi’s rental market experienced a decline in residential rental contracts in the first quarter of 2024, with a 10.9% decrease compared to the previous year. Average apartment and villa rents in Abu Dhabi increased by 4.5% and 1.1% respectively. Overall, the residential market in the UAE started the year off strong and is expected to continue to perform well throughout the year. Both Dubai and Abu Dhabi are projected to see continued price growth, with rental rates increasing in prime areas.
