Press Release

The UAE Residential Real Estate Market to Record a Substantial CAGR of Around 8.4% During 2024-30

The UAE Residential Real Estate Market is anticipated to grow at a CAGR of around 8.4% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The UAE Residential Real Estate Market has been experiencing robust growth following earlier challenges linked to prolonged periods of low oil prices and concerns over property oversupply. Shifts in market dynamics, driven by evolving lifestyle preferences for larger homes and outdoor space trends accelerated by the increase in remote work and online education, have significantly influenced the sector. These changes are supported by strategic government actions designed to enhance investor confidence and boost residential demand. Notably, the expansion of the 10-year golden visa program and the introduction of residency permits for retirees and remote workers have been instrumental as market growth drivers.

Additionally, the UAE government has introduced policies to make the real estate market more accessible to expatriates, spurring further investment. The availability of five-year and ten-year residency visas linked to real estate investments has been a key factor in attracting foreign capital and contributing to market size stability by creating a consistent demand base. This holistic strategy demonstrates a strong pathway for ongoing growth and stability in the UAE’s residential real estate sector, highlighting a well-planned effort to retain its attractiveness to international investors and residents, further states the research report, “The UAE Residential Real Estate Market Analysis, 2024.”

Segmentation Analysis

Apartments & Condominiums Segment to Hold a Major Market Share

Based on the type, the market is further bifurcated into Apartments & Condominiums, and Villas & Landed Houses. In the UAE Residential Real Estate Market, apartments and condominiums are poised to take the lead, primarily due to their prime locations in the hearts of major urban centers like Dubai and Abu Dhabi. The appeal of apartment living is evident in its convenience, with proximity to business districts, shopping centers, and entertainment venues, making it highly desirable for young professionals and expatriates. These groups particularly value the easy access to work and vibrant city life, along with the modern amenities provided by apartment living. Additionally, the inclusion of features such as enhanced security, maintenance services, and community amenities like swimming pools, gyms, and recreational areas significantly boost the living experience in apartments and condominiums.

Moreover, this segment is increasingly seen as a lucrative investment opportunity. Ongoing urbanization and the steady influx of international workers have sustained the demand for rental properties, rendering the apartment market especially attractive to real estate investors. Compared to villas, apartments offer a more accessible entry point in terms of cost, appealing to both novice investors and those looking to optimize rental yields. The continuous development of new high-rise buildings and luxurious condominium projects by prominent developers further diversifies the market, presenting sophisticated living options across various budget ranges. This dynamic ensures that apartments continue to be a critical and vibrant component of the UAE Residential Real Estate Market.

Dubai Leads the UAE Residential Real Estate Market Growth

Dubai has asserted its dominance in the UAE Residential Real Estate Market, with a noticeable increase in sales and demand across a range of property types. The market boom is particularly pronounced in areas like Arabian Ranches 3 and Villanova, where sales of villas and townhouses have soared, and significant activity is also seen in Dubai South and Mohammed bin Rashid City. These developments underscore Dubai’s pivotal role in propelling the UAE’s real estate sector, drawing both local and international investors with its array of diverse and opulent properties.

Moreover, Dubai continues to be a top choice for residential investment, driven by robust demand in prime locations such as Dubai Marina, Downtown Dubai, and Palm Jumeirah, all known for their strategic positions and superior living standards. The transaction prices for off-plan properties in Dubai have seen a significant year-on-year rise of 53%, with median prices for both apartments and villas also experiencing notable increases. This steady price growth underscores Dubai's ability to retain its leadership in the market and its influence across the broader UAE real estate scene. This sustained success positions Dubai’s status not just as a crucial center for real estate transactions but also as a trendsetter for future developments and opportunities in the UAE’s market.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Dubai Holding LLC, Emaar Properties PJSC, DAMAC Properties, Vincitore Realty LLC, Aldar Properties, Majid Al Futtaim Properties, Deyaar Properties, Azizi Developments, Omniyat, Manazel, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Market Size- By Value, Forecast Numbers, Segmentation, Market Shares)?
2. What are the market trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?