Real estate market trends provide real estate developers and potential investors with valuable insights, enabling the former to meet the needs and demands of the latter while informing buyers and tenants with the essential perceptions to make the right purchases and investments.
The 2024 UAE real estate market forecast predicts an increase in prices, demand, and supply across the property market, most notably in Dubai and Abu Dhabi.
The real estate market trends in 2024 explore the future of off-plan and ready properties, foreign investments, the rental market, and the integration of Artificial Intelligence (AI). Continue reading to discover these trends and more.
UAE Real Estate Market Forecast: Predictions for 2024
Real estate market predictions for the UAE market in 2024 include the following:
Supply and Demand
In 2023, the UAE government has continued to increase the investment-friendly quality of Dubai and Abu Dhabi’s markets, especially for foreigners, through government initiatives including residency permits for retired and remote workers. These efforts build on previous incentives, such as allowing foreign investors to own property in designated areas, resulting in higher demand for properties.
However, it is expected that demand from investors will exceed supply in 2024, regardless of the new units delivered; 20,000–30,000 units are expected to be delivered in Dubai this year, while 5,000 units will enter Abu Dhabi’s market.
It is worth mentioning that the number of units to be delivered in 2024 is only half the number of completed developments in 2023, leading to demand outweighing supply and thus, stabilizing prices.
That being said, different segments of the real estate market will experience this trend differently, as shown below.
Prices Across the Market
Average residential prices in Dubai are estimated to increase by 5 percent to 7 percent, while average prices in Abu Dhabi are projected to rise by 3 percent to 5 percent. The impact of the rise in prices is expected to impacy both Dubai and Abu Dhabi differently.
Manyof the properties expected to be completed in 2024 in Dubai will be established in affordable areas like Jumeirah Village Circle, Arjan, and Dubai Production City, among others. Similarly, mid-market destinations, including Dubai Marina, Business Bay, and Mohammed Bin Rashid City, will witness significant handovers.
Considering these deliveries, there will be higher demand foraffordable neighborhoods, resulting in increased pressure on rental prices—a notable trend in the 2024 UAE real estate market. This will make it challenging for tenants looking for affordable housing to find suitable options. On the other hand, the delivered developments in the mid-market area will stabilize rental prices.
As for the high-end market segment, supply will not reach a balance with demand, so rental rates may remain stable, and property prices may experience an upward trend.
Foreign Investments
One of the current housing market trends is local and international investor demand, which is expected to continue into 2024. As such, investors from India, China, the UK, the CIS (Commonwealth of Independent States), and Europe will continue to be interested in Dubai and Abu Dhabi’s property market. Investors from Latin America, Mexico, and Canada will also experience heightened real estate demand.
Off-Plan and Ready Properties
Properties ready for occupancy, also known as “ready” properties, will continue to see higher demand than off-plan properties, which are units still under construction at the time of purchase. Ready properties will see higher demand as they offer investors the chance to rent out the property immediately and receive a quick return on investment.
In the first nine months of 2023, off-plan sales amounted to 100 Dh billion, while ready-property sales for the same period reached 104.9 Dh billion. This current housing market trend will carry on into 2024.
AI Integration
The UAE’s real estate market is integrating AI technology to transform the quality of insights available to tenants and buyers.
Increased access to quality real estate insights through the use of AI will bring forth the following in 2024:
Virtual tours of properties and gated communities.
3D floor plans and the ability to alter them to one's preferences.
AI-powered property furnishing.
AI-driven market analysis.
An example of how advancements in technology may attract further appeal for off-plan properties is by helping potential buyers and tenants visualize the property.they are purchasing during, or prior to construction Athe
Investing in the UAE Market with Bloom
Bloom Properties are developed in key locations, providing you with top amenities and proximity to prime areas in the UAE. We offer an impressive range of residential options, so you can invest in the property that best fits your needs and preferences.
Invest in the UAE market today with Bloom.
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