UAE real estate market shows no signs of faltering

According to real estate agency CBRE, the United Arab Emirates' real estate sector set a ten-year record for home sales last year, and the country's real estate market activity and performance is expected to continue through 2024.

According to the agency's report, the average value of housing in Dubai rose by 20.1% by December 2023, with apartments increasing by 19.8% and villas by 21.8%. A total of 39,190 residential units were completed in 2023, 34.4% of which were completed in Meydan One, Downtown Dubai and Business Bay zones. In addition, a further 68,880 residential units are scheduled to be delivered in 2024, with 22.7% of them in Business Bay, District Seven and Damac Lagoons zones.

Rental values for apartments in Abu Dhabi, the capital of the UAE, rose 1.1% in the year to Q4 2023, while villa rental values remained almost unchanged from the same period a year earlier. Despite the slowdown in the rental market, average apartment rents still rose 2% year-on-year to AED 64,996, while villa rental values increased slightly to AED 163,098. However, CBRE noted that registrations in Q4 2023 declined by 12.6% year-on-year due to an 18.4% drop in the number of renewed leases and a 2.2% decrease in the number of new contracts signed.

The UAE hotel sector also performed well last year.