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Remarkable growth in UAE’s real estate sector in Q2 2024: Report

Remarkable growth in UAE’s real estate sector in Q2 2024: Report
2 July 2024 22:32

RABI HAMAMSAH (ABU DHABI)

Primo Capital, a real estate agency based in Dubai, has released a comprehensive analysis of the sector in Q2 2024. The report highlights important market trends and robust growth in the UAE’s real estate sector. The report has zeroed in on key indicators and major developments affecting the sector amidst shifting economic conditions across all unit categories. 



Dubai’s residential market experienced unprecedented levels of activity in the second quarter of 2024, setting a new record with a total of 35,310 transactions-a substantial increase of 20.5% when compared to same period the previous year. The significant growth of 23.9% in off-plan property sales and a noticeable 15.2% rise in secondary market sales were the primary factors contributing to this sudden increase. This pattern in UAE real estate highlights the lasting trust among potential buyers and robust demand in the sector.



The increasing tendency of property prices reflects the changing market sentiment. The typical price of a residence in Dubai rose by 20.7% compared to the previous year, with apartments and villas seeing increases of 20.4% and 22.1%, respectively. This increase affirms the fact that Dubai continues to be a leading choice for global real estate investment, despite broader economic changes. 

The mean cost of a villa in Abu Dhabi grew by 2.3% annually, while the average price of an apartment rose by 4.3%, showing ongoing growth in the Emirate’s residential market. 


In Dubai, the commercial real estate market has displayed outstanding performance, as average rents have risen by 22.2% on an annual basis and 17.1% quarterly. This increase occurred as a result of the companies and businesses needing to grow in the flourishing economy of the UAE.

Furthermore, the demand for warehouses and storage spaces to handle the distribution and supply of goods in Dubai has led to a rise in annual rental rates of up to 14.3% in the industrial and logistics sector.


The hospitality sector in the UAE thrived due to the arrival of a large number of visitors. There was an average occupancy rate increase of 0.9 percentage points each year, showing the sector’s ability to withstand challenges and adjust. 



The noticeable jump in retail rental rates in Abu Dhabi and Dubai before Q1 2024, with average rents going up by 14.7% and 10.5% each, show a gap between supply and demand as well as higher commercial activity. 

In contrast, Q2 2024 experienced a more rapid growth in multiple categories compared to Q2 2023. There was a 20.5% year-on-year increase in residential transaction volumes. Residential prices in Dubai increased by 20.7% annually on average. Commercial rents in Dubai increased by 17.1% within the quarter. Industrial rental rates in Dubai rose by 14.3% compared to the previous year. Abu Dhabi saw a 14.7% year-on-year increase in average retail rents.



The Primo Capital real estate agents attributed the ongoing expansion of UAE real estate sector to factors such as a robust economy, significant ROI, increased capital returns, and favourable government policies. 

Mohammad Zeaiter, Senior Property Advisor at Primo Capital, states that top developers in the UAE are now emphasising customer-centric construction over a fixed design, allowing buyers to select, modify, and personalise based on their preferences. He also stated that the attractive profits from real estate investments in the market is drawing the attention of international investors.

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