2024 UAE Real Estate Market Insights

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The real estate market in the UAE has shown remarkable growth in the past few years, despite the global challenges and uncertainties. With a strong and diversified economy, a growing population, and a strategic location, the UAE offers attractive opportunities for investors and homebuyers alike. In this blog, we will explore some of the key trends and forecasts that shape the UAE real estate market outlook for 2024.

A Steady and Sustainable Growth

According to Statista Market Forecast, the value of the UAE real estate market is projected to reach US$0.71 trillion in 2024, with a compound annual growth rate (CAGR) of 3.03% from 2024 to 2028. The residential real estate segment dominates the market with a projected value of US$0.41 trillion in 2024, accounting for more than half of the total market value. The UAE real estate market is expected to outperform many other leading markets in the world, such as the UK, the US, and China, in terms of growth and stability.

The UAE real estate market has entered its third growth cycle, which can be named as being more steady and sustainable progress, rather than volatile booms and busts. The transaction volumes and values have increased significantly in the past few years, indicating a strong demand and confidence in the market. For example, in 2023, the market witnessed 120,000 property transactions with a total value of AED 500 billion, doubling the figures for 2022. The trend is expected to continue in 2024, with similar or higher numbers of transactions and values.

A Diversified and Resilient Economy

One of the main drivers of the UAE real estate market growth is the diversified and resilient economy of the country. The UAE has successfully reduced its dependence on oil revenues and expanded its non-oil sectors, such as tourism, trade, logistics, finance, and technology. The non-oil sector accounts for more than 70% of the UAE’s GDP and is expected to grow by 4.1% in 2024, according to the International Monetary Fund².

The UAE has also implemented various initiatives and reforms to enhance its economic competitiveness and attractiveness, such as the UAE Vision 2021, the UAE Centennial 2071, the UAE Golden Visa, the UAE National Innovation Strategy, and the UAE Artificial Intelligence Strategy. These initiatives aim to foster innovation, entrepreneurship, talent, and sustainability in the country, and create new opportunities and markets for the real estate sector.

A Rising Population and Demand

One of the main drivers of growth in the UAE real estate market is the increasing population and corresponding demand for residential and commercial properties. 

By reaching approximately 10 million, the population have a projected annual growth rate of 1.5%, reaching a total of 10.8 million by 2024, according to figures from the World Bank. the UAE will offer a desirable standard of living from additional security and a more stable living environment to meet the lifestyle of the diverse population UAE has to keep the country has the same high ranking in Happiness and human development. 

Since the country succeeded in managing the recent COVID-19 pandemic and been recognized as having one of the world’s highest vaccination rates helped the country to hold several important events like Expo 2020 and Abu Dhabi Grand Prix, which all these things attracted millions of visitors from all around the world and it had a great impact on boosting tourism and hospitality sectors.

These factors create a high demand for residential and commercial properties in the UAE, especially in the prime and luxury segments. The UAE offers a wide range of options for investors and homebuyers, from apartments and villas to offices and retail spaces, with various amenities and facilities. The UAE also offers competitive prices and returns, compared to other markets in the region and the world.

In conclusion, the UAE Real estate sector is promising in 2024 because of country’s steady economic and sustainable growth and the rising in population which played an important role in increasing the demand and a shift in customer preferences and following trends. this sector offers different attractive opportunities for investors and even homebuyers who are looking to elevate their lifestyle to the better ones by benefiting from the competitive prices, Hugh ROI in case of investment, and high quality of properties and communities. 

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