During Q1 2024, the United Arab Emirates saw a notable rise in the demand for ready properties, fueled by tenants opting for ownership over renting.
Contrary to Q1 2023, which witnessed a surge in off-plan transactions, the property market in Dubai and Abu Dhabi experienced robust demand for existing projects in Q1 2024, as per data from Property Finder.
In the wake of the pandemic, rental prices have steadily climbed over the past three years. With a burgeoning population, this upward trend in rentals is expected to persist in 2024. Consequently, UAE residents are increasingly turning towards property ownership in Dubai and Abu Dhabi to mitigate monthly expenses and capitalize on property appreciation.
Cherif Sleiman, chief revenue officer at Property Finder, expressed optimism about the diverse demand shaping up in 2024, foreseeing positive impacts in the upcoming months.
In Q1 2024, Dubai’s existing property market recorded nearly 19,600 transactions, accounting for 54% of all transactions, up from approximately 15,000 transactions (48% of all transactions) in Q1 2023—a notable 30% increase in volume.
814 transactions in Abu Dhabi
Transaction values in Q1 2024 constituted 68% of the total sales transaction value, reaching Dh78.2 billion, compared to 60% in Q1 2023, with the current/ready transaction value rising significantly from Dh53.6 billion to Dh46.6%.
According to data from the Dubai Land Department (DLD), the total sales transactions in Q1 2024 surged by 17% to over 36,000 transactions, marking the second-highest quarter ever.
Abu Dhabi’s real estate sector also witnessed a substantial uptick, with 814 residential transactions in Q1 2024, representing roughly 38% of all transactions—a 30% increase from Q1 2023. Meanwhile, the existing/ready transaction value in Q1 2024 contributed Dh1.74 billion, or 29%, to the total sales transaction value.
While the total sales transactions in Abu Dhabi slightly decreased from 2,286 to around 2,145 compared to Q1 2023, the off-plan market saw a notable 20% decline in volume, indicating a shifting trend towards ready properties.