The UAE property market has kicked off the year with strong growth across all sectors during the first quarter of 2024. In its latest UAE Residential Market Review Q1 2024, CBRE Group reveals that Dubai’s total transaction volumes reached 35,310, an annual increase of 20.5 percent, marking a new record-high in Q1 of 2024.
“The strong levels of activity and high absorption levels, which have reduced available supply, will continue to support price growth in both Abu Dhabi and Dubai over the remainder of the year,” stated Taimur Khan, head of research, CBRE.
Abu Dhabi transaction volumes grow
In its UAE market review, CBRE reveals that property transaction volumes in Abu Dhabi saw a 22.6 percent increase to 2,795. The group attributes this growth to an 18.1 percent increase in off-plan sales and a 34.5 percent rise in secondary market sales. In Q1, Abu Dhabi’s average apartment and villa prices increased by 4.3 percent and 2.3 percent, respectively. Moreover, average apartment and villa rents have increased by 4.5 percent and 1.1 percent, respectively.
Notably, Abu Dhabi’s rental market saw 46,130 residential rental contracts in Q1 2024, an annual decline of 10.9 percent. The report attributes this decline to a 15.5 percent decrease in rental contract renewals and a 2.4 percent drop in new rental registrations.
“In terms of rental growth, we expect that rental rates in Abu Dhabi will continue to rise, with prime areas set to outperform the market,” added Khan.
Read: Sharjah real estate transactions reach $462.83 million in April 2024
Dubai transaction volumes surge to record-high
Highlighting the thriving UAE property sector, Dubai’s total transaction volumes reached a record high of 35,310 in Q1 of 2024. Off-plan transactions recorded an increase of 23.9 percent, while secondary market transactions saw a 15.2 percent increase.
In March alone, Dubai set a new record high with transaction volumes reaching the highest monthly figure on record, rising 13.2 percent. During this period, off-plan sales and secondary market sales saw a 20.2 percent increase, while secondary market sales increased by 2.2 percent.
Price growth across the Dubai real estate market has continued to accelerate during Q1 2024, with average prices increasing by 20.7 percent. Moreover, average apartment and villa prices increased by 20.4 percent and 22.1 percent, respectively.
In Q1 2024, the total number of sales transactions within Dubai’s prime market segment registered an annual decline of 2.1 percent. Meanwhile, super-prime transactions recorded a drop of 16.5 percent year-on-year to 227. CBRE attributes this decline to a significant drop in off-plan sales due to high demand and limited supply. In Dubai, average prime prices saw a year-on-year increase of 16 percent, while average super-prime prices grew by 14.8 percent.
Looking ahead, CBRE expects Dubai’s residential sales market to maintain growth. It states that prices in both the apartment and villa segments of the market will continue to grow, however, not at the same pace. In the rental segment, the report expects residential rents to continue their upward trajectory. However, this rate of growth will likely moderate.
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