Asteco’s Q3 2024 real estate report showcases a vibrant UAE property market, with growth trends in Abu Dhabi, sustained momentum in Dubai, and increasing activity in the Northern Emirates.
Abu Dhabi: Growth Driven by Development Pipeline
The capital saw the completion of 950 residential units and the launch of projects totaling 2,560 units in areas like Yas Island and Jubail Island. Residential rental rates increased by 1% quarterly and 4% annually, with high-end villas and apartments leading growth. Villa sales surged, with Saadiyat Island witnessing a 25% year-on-year price rise. The market’s strength is bolstered by strategic initiatives such as Aldar Properties’ joint ventures with Mubadala.
Dubai: Continued Demand for Off-Plan and Luxury Properties
Dubai welcomed 8,100 new units in Q3, with 14,900 more expected in Q4. Rents rose by 3% for apartments and 2% for villas, driven by updated RERA guidelines. Office sales saw a significant annual price surge of 21%, underpinned by economic growth and limited Grade A supply. Aggressive developer payment plans (e.g., 80/20) fueled robust off-plan sales, particularly in luxury segments.
Northern Emirates and Al Ain: Affordable Alternatives
Tenants relocating from Dubai boosted demand in the Northern Emirates, where rental prices remain lower despite recent increases. Al Ain maintained its upward trend, with residential rents rising by 2% to 5% across key sectors.
Asteco’s report reflects resilience in the UAE’s property market, with regional differences highlighting varied opportunities for investors and tenants.
