Abu Dhabi real estate is becoming a destination for family entertainment and culture, while real estate in Dubai is still home to “luxury and new entrants.”
Experts at JLL’s recent event, “Navigating the Growth Spectrum: Exploring Strategies for Sustained Success,” in real estate Dubai, predicted that the UAE real estate market would continue to grow in 2024 despite a weakening global outlook.
As a result of strong economic fundamentals, government efforts, and growing investor confidence in the UAE economy, even with inflationary pressures in the world, the real estate sector is expected to perform well in 2024 thanks to its strong and resilient nature, reinforcing its position as the foundation of the UAE’s diversification agenda. In a period of global unpredictability, the UAE’s development prospects and improved investment climate provide stability, enhancing its attractiveness to local and foreign real estate investors, according to James Allan, CEO of JLL’s Middle East and Africa division.
Branded homes, health centers, and lifestyle-focused properties in Dubai and Abu Dhabi attract investors. The market for homes worth less than AED 3 million will increase developers’ chances of providing affordable homes. According to the statement, despite the increase in the number of luxury residences and cities, the most sought-after area remains an option for those wishing to own an affordable unit and the residential sector is expected to produce 34,000 units in real estate in Dubai and 8, 000 units in Abu Dhabi real estate next year.
There is a “strong demand” for office space in real estate in Dubai and Abu Dhabi. This year’s office rent increases were largely caused by a shortage of Grade A space and a rise in inquiries.
The popularity of flexible office spaces increased as work patterns changed. Initiatives to expand logistics and manufacturing boosted the industrial sector Strong demand was seen for warehouse and logistics solutions.
Malls are adding new features and coordinating with e-commerce as retail transforms. F&B concepts and luxury companies are doing well.
According to the statement real estate in Dubai is still seeing “luxury and new entrants,” and Abu Dhabi is becoming a hotspot for family-friendly entertainment and culture. A balanced event calendar and an increase in visitors will fuel the growth of hospitality.
Real estate in Dubai is expected to expand by 46% in 2024.
According to Realiste’s most recent research on artificial intelligence technology, the housing and real estate in Dubai is expected to reach a major peak in 2024, with a percentage of approximately 46 percent. This is occurring in contrast to the prior year when the average increase in prices for real estate in Dubai was between 20 and 40 percent. In particular, low-trending districts such as Wadi Al Safa 4, Hessayan First, and al Yalayis are among the most significant districts that will witness this pinnacle of development, according to economic analysts. I’ll go into more detail regarding the causes of this 46% rise as the top investment opportunities for 2024 below.
Which areas of Dubai will expand significantly by 2024?
You may be thinking about which location is the greatest to invest in. Now that you know Dubai is a wonderful city to buy real estate in Dubai 2024, I may bring up the most recent Realiste AI news, which predicts that local real estate values in Dubai will rise by at least 10–15% annually by 2024, with some undervalued locations seeing price increases of up to 46%. Thus, specialists advise buyers to pick their dream home in Dubai.
Highlights of Dubai
- In 2020, the real estate in Dubai and construction industries began to rebound from the COVID-19-related downturn. Their respective decline rates were 4.7% and 7.4%.
- Thankfully, the real estate market began to rebound early in the following year, but the building industry improved more at the start of 2023.
- Based on data from the Dubai Statistics Center, the real estate in Dubai grew by 1.9% and 3.6%, respectively, in the first half of 2023.
- In 2023, both industries will contribute nearly 14.4% of Dubai’s GDP.
Total Sales Transaction Volume in Volume
- Compared to 96,459 in 2022, the number of registered sales transactions increased significantly to 133,134 in 2023.
- Because of the outstanding performance of the off-plan trades, this records a 38% growth, indicating the highest performance for a year ever recorded.
- 178 locations of real estate in Dubai transactions in 2023 Ten areas were where 55.2% of the transactions occurred, with Al Barsha South Fourth ranking highest on the list. It made up 10.7% of all sales transactions.
Abu Dhabi’s Best Features
- Abu Dhabi’s economy performed well in 2023, helped by the expansion of the non-oil industry. The first half of YoY saw around 6% growth in this sector.
- Over 8% of Abu Dhabi’s GDP came from the industrial sector, which expanded by 5.6% in Q1 and 12.4% in Q2.
- The first half of 2023 saw growth in Abu Dhabi’s real estate and construction industries of about 13.4% YoY, or 12% of the country’s GDP.
- With 17% of the sector’s growth in the first half and roughly 8.5% of the GDP overall, the construction industry is thought to be the primary driver of the sector’s expansion.
- However, compared to the first half of 2022, the real estate activities sector increased by 5.7%.
Total Sales Transactions 2023
- Abu Dhabi witnessed a significant increase in the total sales transitions:
- Statistics from the Department of Municipalities and Transport (DMT) indicate that in 2023, both residential and commercial space will be utilized.
- With 13,298 transactions, the number of transactions set a record for the year, up from 7,602 in 2022. This indicates an increase of 75%.
- In residential transactions, it accounts for approximately 85% of the entire value and 97% of the total volume.
- At AED 44 billion, the transaction value demonstrated a noteworthy 120% growth from AED 19.9 billion in 2022.
- Investor confidence in Abu Dhabi’s real estate market is demonstrated by the rise in transactions. This expansion can also be attributed to government efforts to enhance business climate and regulations, rendering the region a more alluring investment destination.
