According to economists, prices in Dubai are expected to increase by 5% to 7%, and in Abu Dhabi, by 3% to 5%.
Developers and analysts predict that the UAE’s property prices will rise further due to increased buyer demand, but that the luxury market may see a shift in the second half of 2024.
According to Haider Tuaima, director and head of real estate research at ValuStrat, average residential prices in Abu Dhabi will climb by 3 to 5 percent, while average residential prices in Dubai, the Middle East’s center of commerce and tourism, are expected to grow by 5 to 7 percent.
“The market will remain strong in terms of transactional activity, price appreciation, and rental increases over the next three to four months,” Mr. Tuaima said.
But he stated that “we could see an inflection point where we could see a turn in the curve and if it happens then it will hit the high-end luxury market first” in the middle of next year, most likely in the summer.
“We’re not sure if it will cause a price correction or stabilize that market. However, it is extremely likely, if not certain, that the high-end luxury market will shift in some way.
This year, the UAE’s real estate market held steady, with increased transaction volumes in both Dubai and Abu Dhabi as a result of government programs like residency permits for retirees and remote workers, as well as general economic expansion.
According to the most recent figures from the Dubai Land Department, in the first nine months of 2023, Dubai reported 116,116 new property transactions valued around Dh429.6 billion ($117 billion).
Annually, the emirate’s total transactions climbed by 33.8%, but values soared by more than 36.7% throughout that time.
Abu Dhabi saw a rise in real estate transactions in response to increased demand from GCC and local investors.
The Department of Municipalities and Transport provided data on 10,557 real estate transactions in Abu Dhabi during the first half of 2023, according to a July report from the emirate’s media office.
In the third quarter, Abu Dhabi’s average apartment price increased by 0.9% annually. Bhandari Khushnum / The National – In the third quarter, Abu Dhabi’s average apartment price increased by 0.9% annually. During the course of the six months, the value of the deals more than doubled, and the volume of transactions—which included mortgages and property sales—rose by 41% annually.
