UAE real estate investors were active in the opening three months of the year as residential sector was buoyed by Golden Visa rule changes and steady supply, according to property experts JLL.
The introduction of innovative product offerings, attractive payment options and recent updates to the Golden Visa requirements continue to drive investor demand within the country’s residential market, according to JLL’s UAE Real Estate Market Overview for Q1 2024.
The residential market in Dubai experienced a strong start to the new year, with approximately 10,000 units completed throughout the first quarter, raising the total stock to 729,000 units.
UAE real estate 2024
Over the remaining nine months, an additional 25,000 units are scheduled for delivery in the emirate, primarily consisting of apartments located in prominent areas such as MBR City, Business Bay, Jumeirah Village and Dubai Land.
In Abu Dhabi, there was a steady delivery of 1,600 units with 6,000 units expected to be added by the end of the year.
Faraz Ahmed, Research Director at JLL MENA, said: “During the first quarter, the residential sector continued to demonstrate strong growth.
“Dubai’s residential sales transactions recorded a 20 per cent increase in volume compared to the same period last year, whereas Abu Dhabi witnessed a 17 per cent increase in volume, with more apartment transactions than villas and townhouses.
“However, escalating land prices and construction costs are compelling developers to shift their focus towards secondary locations in addition to targeting properties within the AED2m ($545,000) price range, enabling buyers to meet the threshold for the Golden Visa eligibility.”
In Dubai, both sale prices and rentals registered around 21 per cent annual increases, respectively.
“Apartment rentals, in particular, experienced a considerable annual surge of 22 per cent, surpassing the growth rate of villa rentals at 14 per cent.
“Demand for villas remained robust, with a notable uplift of 22 per cent year-on-year (y-o-y) in sale prices.
“In Abu Dhabi, sales prices increased by an average of 7 per cent, while rental rates rose by an average of 4 per cent during the same period.
“Similar to Dubai, apartments in Abu Dhabi recorded higher rental hikes of 5 per cent compared to villas. However, in terms of sale prices, villas in Abu Dhabi grew by 9 per cent y-o-y”.
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