The first quarter of 2024 saw a series of notable trends and data changes in the UAE real estate market, indicating the industry's vitality and potential.
Firstly, the trend of tenants transitioning to homeowners became increasingly apparent during this quarter. With rents continuously rising, more tenants opted to invest their funds in property purchases to counter the high cost of renting. This trend drove growth in demand for existing properties, becoming a significant feature of the market during this quarter.
Meanwhile, demand for existing projects in Dubai and Abu Dhabi also showed strong growth trends. Compared to the first quarter of 2023, demand for existing projects in the first quarter of 2024 saw a significant increase, with Dubai and Abu Dhabi emerging as hotspots in the market. This indicates increased investor confidence in the UAE real estate market and optimistic expectations for the future.
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The market's activity is also reflected in the growth of transaction volume and value. According to data released by Property Finder, the transaction volume in Dubai's ready/ near-ready property market in the first quarter of 2024 approached 19,600 transactions, a 30% increase compared to the same period last year. Meanwhile, the transaction value reached 78.2 billion dirhams, accounting for 68% of the total sales transaction value, representing a 46% increase from the same period last year. These figures reflect the high level of market activity and investors' enthusiasm for the UAE real estate market.
Abu Dhabi's market also showed similar growth trends. In the first quarter of 2024, Abu Dhabi's real estate market recorded a total of 814 residential transactions, a 30% increase compared to the same period last year. The transaction value for existing/near-ready properties reached 1.74 billion dirhams, accounting for 29% of the total sales transaction value, showing an increase from the same period last year. This indicates that Abu Dhabi's market is also favored by investors, with high market activity.
However, despite the overall positive growth trend, there are also some adjustments and challenges. Sales transaction volume in Abu Dhabi's off-plan market slightly decreased, although still occupying a considerable proportion, compared to the same period last year. This may indicate that the market is undergoing some adjustments, requiring further observation and analysis.
