CBRE Report Reveals Over 20% Surge in Dubai Property Prices and Rents: Abu Dhabi Transactions Also Spike

Abu Dhabi Transactions Spike. According to CBRE Report Over 20% Surge in Dubai Property Prices and Rents doing up-down. In a recent report by CBRE Middle East, the UAE real estate market has demonstrated substantial growth in the first quarter of 2024, with Dubai and Abu Dhabi at the forefront. The report highlights significant increases in property sales prices and rents, providing valuable insights for global investors.

Abu Dhabi Transactions Spike
Abu Dhabi

As Dubai’s property market experiences over 20% price growth and Abu Dhabi sees a notable rise in transaction volumes. The UAE continues to emerge as a prime destination for real estate investment.

Dubai: A Hotspot for Real Estate Investment

Dubai’s real estate market has seen a remarkable upswing in the first quarter of 2024. The city’s property prices have surged by 20.7% year-on-year as of March 2024, with villa prices leading the charge with a 22.1% increase. This growth is not just limited to villas; apartments have also seen a substantial rise in prices, climbing by 20.4% during the same period. Despite this impressive growth, the overall average sales rates are still marginally below the 2014 highs by 0.1%. Although several prominent residential neighborhoods have already surpassed their 2014 figures.

In terms of pricing, the average apartment prices in Dubai now stand at AED 1,486 ($405) per square foot. While villas are priced at AED 1,776 ($484) per square foot. Notably, average villa sales rates have surpassed their 2014 baseline by 22.9%.

Rental Market Gains Momentum

Dubai’s rental market has also witnessed significant growth in 2024, following a period of moderation in 2023. As of March 2024, average residential rents have increased by 21.2% year-on-year, with apartment rents rising by 22.1% and villa rents by 14.5%. This increase in rental rates is indicative of the high demand for rental properties in Dubai, making it an attractive market for investors seeking rental income.

Data from the Dubai Land Department highlights the growing rental market, with a total of 159,941 rental registrations recorded in the year to date to March 2024, marking a 5.8% increase from the previous year.

Record-Breaking Transaction Volumes

The first quarter of 2024 has been a record-breaking period for Dubai’s residential market. Transaction volumes reached the highest monthly figure on record in March 2024, with a year-on-year growth of 13.2%. Throughout this period, both off-plan sales and secondary market sales saw increases, with off-plan sales rising by 20.2% and secondary market sales by 2.2%.

Overall, Dubai’s total transaction volumes for the first quarter of 2024 reached 35,310. The highest ever recorded for the first quarter of any year. This marks a 20.5% increase from the previous year, with off-plan transactions up by 23.9% and secondary market transactions by 15.2%.

Abu Dhabi: Steady Growth and Rising Demand

Abu Dhabi, the UAE’s capital, has also experienced positive growth in its real estate market. In the first quarter of 2024, the total volume of transactions stood at 2,795, a 22.6% increase compared to the previous year. This growth has been driven by an 18.1% rise in off-plan sales and a 34.5% increase in secondary market sales.

The city’s average apartment and villa prices have increased by 4.3% and 2.3%, respectively, during the same period. Despite a 10.9% decline in the total number of residential rental contracts, rental rates have still seen modest growth. With apartment rents increasing by 4.5% and villa rents by 1.1%.

Looking Ahead: Continued Growth and Opportunities

According to Taimur Khan, Head of Research MENA at CBRE. The UAE’s residential market has started the year on a strong note, with elevated demand levels driving performance. The strong levels of activity and high absorption rates, which have reduced available supply. Are expected to continue supporting price growth in both Abu Dhabi and Dubai throughout the remainder of the year.

In terms of rental growth, prime areas in Abu Dhabi are set to outperform the market, while in Dubai residential rents will continue to rise. Albeit at a moderated rate in the second half of the year.

Why Invest in Dubai and the UAE?

For global investors, particularly those from the U.S. and Canada. The thriving real estate market in Dubai and the greater UAE offers a wealth of opportunities. The rapid price growth, high rental yields, and record-breaking transaction volumes make Dubai an attractive destination for investment. Additionally, the ongoing development projects and increasing demand for both residential and rental properties ensure a promising future for investors looking to diversify their portfolios.

Investing in Dubai’s real estate market not only provides financial returns but also offers a gateway to one of the world’s most dynamic and fast-growing cities. With its strategic location, world-class infrastructure, and investor-friendly policies. Dubai stands out as a premier investment destination in the global real estate landscape.

Conclusion

The UAE real estate market led by Dubai and Abu Dhabi, continues to thrive and present abundant opportunities for global investors. Whether you are looking to invest in high-end villas, lucrative rental properties, or off-plan projects. Now is the time to explore the dynamic and profitable real estate market of Dubai and the UAE.


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