The extended growth is due to HNWIs’ interest in luxury property investment in Dubai.
The UAE real estate market is anticipated to reach a value of AED2.6 trillion ($707.86 billion) by the end of 2024, according to recent data from Statista.
Luxury demand driving market growth
This extended growth is attributed to the increased interest of high-net-worth individuals (HNWIs), particularly their demand for luxury property investments in Dubai. In the first quarter of 2024, Dubai saw the sale of 105 luxury homes, bringing the city closer to matching last year’s record of 431 transactions of properties worth over $10 million. This performance outpaced prime markets like New York and London.
Projected increase in HNWIs to fuel further growth
As the influx of wealthy individuals into Dubai continues to rise, with a projected 24.6 percent increase in HNWIs by 2025, the city’s ultra-luxury and overall real estate market are poised for further growth.
Continued growth
Georgina Atkinson, managing partner at Origin Private Office, commented on the regional real estate market trends: “We have seen the regional real estate market witness continued growth, with the Dubai real estate market proving to be the leader when it comes to sales volume and surging price growth. In the ultra-prime segment of the market, we have seen significant demand from both regional and international investors, with many of our ultra-high-net-worth (UHNW) clients from Asia and the U.K./Europe choosing to relocate or have a presence in Dubai.”
Abu Dhabi real estate market maintains upward trajectory in Q1 2024
In Abu Dhabi, the real estate market experienced during Q1 2024 remarkable growth, particularly in the residential segment, according to cnsultancy and advisory firm, ValuStrat.
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.“
“In the residential segment, the capital city demonstrated steady growth, with both apartments and villas showing positive performance. The ValuStrat Price Index recorded a notable increase of 4.2 percent annually and a 1.2 percent quarterly. Apartments experienced a modest 2.1 percent annual rise, whilst villas exhibited a respectable gain of 6.3 percent annually. Moreover, the rental market mirrored this upward trajectory, increasing 5.7 percent on an annual basis,“ said Haider Tuaima director & head of Real Estate Research.
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