The real estate sector in the UAE thrived in the first quarter of 2024, with prices in Dubai rising by 20.7%

The UAE real estate market started 2024 with confident growth across all sectors. In the latest CBRE report for the first quarter of 2024, it is noted that the total transaction volume in Dubai reached 35,310, which is 20.5% higher compared to the same period last year, setting a new record. Real estate prices in Dubai increased on average by 20.7%, with apartment prices rising by 20.4% and villa prices by 22.1%.

In Abu Dhabi, the transaction volume increased by 22.6% to 2,795. The growth is attributed to an 18.1% increase in off-plan sales and a 34.5% growth in secondary market sales. Average prices for apartments and villas in Abu Dhabi increased by 4.3% and 2.3% respectively, while rental rates rose by 4.5% and 1.1% respectively.

CBRE notes that high levels of activity and a reduction in available supply will continue to support price growth in both cities throughout the year. In March 2024, Dubai reached a new record level with transaction volumes increasing by 13.2%. Off-plan sales increased by 20.2%, while secondary market sales increased by 2.2%.

However, the premium segment of Dubai’s market saw a decrease in transaction volumes by 2.1% year-on-year, and in the super-premium segment by 16.5% to 227 transactions. This decline is attributed to limited supply and high demand in off-plan sales. Average prices in the premium segment increased by 16%, and in the super-premium segment by 14.8%.

CBRE predicts that Dubai’s residential real estate market will continue to grow, although the pace of growth may slow down. Prices for apartments and villas will continue to rise, but not as rapidly as before. In the rental segment, a continuation of rental rate growth is expected, although this growth will also be more moderate.