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UAE realty sees steady growth in Q1 2024

UAE realty sees steady growth in Q1 2024
18 June 2024 09:01

KHALED AL KHAWALDEH (ABU DHABI)

Off-plan real estate appears to be enjoying a surge in demand, recording double digit growth year on year (YoY) in Dubai. According to ValueStrat, the strong demand is indicative of strong consumer confidence in the sector despite setbacks including major flooding in April.

The latest ValueStrat price Index published by the property valuation consultation and advisory group showed the volume of “off-plan sales,” referring to unbuilt properties sold off blueprints, increased 76.3% YoY compared to just 8.1% increase on ready properties.

Jumeirah Village Circle, Ras Al Khor Industrial First, Meydan One, Dubai Hills Estate and Business Bay were the top locations for off-plan sales, coinciding with the large number of projects launched in the areas. Discovery Gardens and Dubai Hills Estate also joined the rally and broke their own individual records in May for the highest numbers of off-plan properties sold in one month.

“Despite the flooding caused by April’s record rainfall, strong demand prevented any significant impact on home valuations. Villa capital values continued to expand at similar monthly rates, while apartment valuations experienced accelerated growth compared to April,” the report says regarding the state of the Dubai Market in May 2024.

In Abu Dhabi, the change was less pronounced with a 9.1% increase YoY in off-plan sales volume in Q1 2024. The same segment reported a 20.2% decline in the first quarter when compared to the last quarter.

The sales of ready properties rose by 34.3% YoY in the same period.  “During the first quarter, the Abu Dhabi real estate market experienced growth, particularly in the residential segment. Both apartments and villas demonstrated steady expansion, as evidenced by the ValuStrat Price Index. Additionally, rental values also exhibited an upward trend, reflecting the overall robustness of the market,” said, Haider Tuaima, Director & Head of Real Estate Research at ValueStrat.

“The data from our ValuStrat Price Index underscores the resilience and adaptability of Abu Dhabi’s real estate market in the face of evolving economic conditions. While the residential sector continues to thrive, and the industrial sector maintains stability.”

Abu Dhabi saw the completion of only 80 apartments during the first quarter, representing just 1.2% of the expected residential pipeline for the whole of 2024, with a total of 6,636 residential units slated for completion in 2024.

Sales could pick up, particularly as construction starts on Aldar Properties inaugural project in Saadiyat Island’s Marina District, named Nouran Living alongside new developments at Yas Canal and Zayed City becoming available as well.

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