Asteco’s Q4 2024 real estate report highlights sustained market growth across the UAE, driven by strong economic fundamentals, proactive government initiatives and continued investor confidence.

The report outlines significant trends in Abu Dhabi, Dubai, the Northern Emirates, and Al Ain, providing key insights into market activity, supply, demand, and price movements.

Abu Dhabi Residential and Office Market

Asteco’s latest report reveals that approximately 5,600 residential units were delivered across Abu Dhabi in 2024, with key completions in Yas Island, Saadiyat Island, Jubail Island and Al Raha Beach. Notable new project launches included branded residences such as W Residences on Al Maryah Island, Elie Saab Waterfront on Reem Island and the Mandarin Oriental Residences on Saadiyat Island.

Additionally, the Abu Dhabi Housing Authority introduced Yas Canal, a development featuring 1,146 units for Emirati citizens.

The residential rental market saw sustained growth, with high-end and prime apartments experiencing rental increases of 6% to 10% annually, particularly in Saadiyat Island, Yas Island and Al Raha Beach. The villa market remained robust, with luxury villas in Saadiyat Island registering rental increases of up to 15%. The office sector also witnessed strong demand, particularly for Grade A office space, where rents increased by 10% to 12% year-on-year due to limited supply and strong business expansion.

Sales activity was particularly strong in 2024, with a total of approximately 10,200 transactions. Off-plan properties dominated the market, representing 56% of all sales. Apartment prices increased by nearly 12% annually, with high-end developments experiencing growth of up to 16%, while villa prices recorded a 5% average increase, with prime villa communities achieving annual gains of close to 12%.

Dubai Residential and Office Market

Dubai continued to experience a high volume of new project launches and strong transactional activity throughout 2024. The total residential supply increased significantly in 2024 with the delivery of over 33,000 residential units; an additional 65,000 units are expected in 2025.

New villa launches remained stable at 21,000 units, while apartment launches surged by nearly 50% compared to the previous year, reaching approximately 140,000 new units.

Rental rates for both apartments and villas recorded quarterly growth of approximately 2% to 3%, with variations depending on location and community.

Dubai’s sales market reached record transactional volumes, with off-plan properties accounting for nearly 70% of total sales. Whilst some developers, particularly Tier-1 brands, introduced aggressive payment plans, with structures reaching as high as 80/20 or 75/25, it is worth noting that towards the end of 2024, there was a rise in the number of developers offering sales incentives such as lower down payments, extended payment plans and discounts on service charges.

Office rental and sales prices continued their upward trajectory, particularly in Grade A properties, with demand exceeding supply.

Al Ain and Northern Emirates Market

The Northern Emirates witnessed increased tenant relocation from Dubai, driven by affordability, lifestyle factors and improved infrastructure. Rental rates rose by 4% to 8% in early 2024 before stabilising at 3%. The sales market saw strong demand, with Ras Al Khaimah’s transaction value surging 78%, followed by Sharjah (48%) and Ajman (21%). This growth was driven by approximately 20,000 new project launches, particularly in luxury-branded residences, reinforcing the region’s appeal as an investment hub.

The Al Ain real estate market recorded steady growth in 2024, with rental rates rising across all asset classes. Apartment rental rates increased by up to 10% annually, while villa rents grew at a more modest annual rate of 4%.

The office market in Al Ain remained stable, with rental rate growth ranging between 1% and 5% in key business districts. Retail leasing also showed positive momentum, with community shopping centres and malls seeing minor rental increases, while street retail rents rose by as much as 3% annually.

New residential supply in Al Ain remains limited, with upcoming developments mainly consisting of small-scale projects catering to local demand. However, two major retail projects, the expansion of Al Jimi Mall and the completion of Al Mutarid Lifestyle Centre, are set to increase the city’s commercial offering by a combined 100,000 sq. m. of gross floor area in 2025.