The UAE Central Bank indicated in the economic report for the third quarter of this year that the residential real estate market in the UAE showed significant positive trends during the first nine months of 2024, compared to the same period in 2023.
According to the report, the average selling price per square meter across all types of properties in Abu Dhabi showed a slight increase of 0.3% year-on-year. Apartments saw stronger performance with prices increasing by 1.8% year-on-year, driven primarily by a pre-construction slide, which saw an increase of 6.4% year-on-year, while ready-made apartments grew by 0.6% year-on-year. Villas showed growth trends: pre-construction recorded a 3.4% year-on-year increase in average sales prices, while ready-made price growth in Abu Dhabi saw the highest price growth of 14.3% year-on-year, reflecting strong demand.
In Dubai, the average total selling price increased by 11.1% year-on-year, reflecting strong demand and a booming real estate market. Apartments saw an increase of 10.1% year-on-year, supported by an 8.1% year-on-year increase in the prefabricated units sector, while apartments on the map saw a slight decrease of 0.6% year-on-year. The villas outperformed apartments, with average overall prices rising by 24.5% year-on-year, driven by significant growth in both the units sectors on the map (22.4% year-on-year) and ready-made units (23.2% year-on-year).
In terms of transactions, Dubai significantly outperformed Abu Dhabi, with a significant 34.3% year-on-year increase in sales transactions in Dubai, compared to a 15.5% year-on-year decrease in Abu Dhabi. The data shows the strength of the real estate market in Dubai, with steady growth in both ready-made and modular transactions across all sectors, indicating investor confidence and sustainable demand. The sharp rise in sales values, especially in villas and units, along with increased mortgage activity, highlights a thriving market backed by strong fundamentals.
According to Central Bank, the rental market across the UAE has shown steady growth, with Dubai witnessing sharper increases from Abu Dhabi. Total rents in Abu Dhabi increased by 4.2% year-on-year, paid primarily by apartments, which saw an increase of 4.4% year-on-year. The increase was particularly noticeable in the new rental sector, with rents rising by 6.5% year-on-year.
In contrast, villas showed a slight growth of 0.4% year-on-year, with mixed trends. Renewable villa rents grew by 1.3% year-on-year, while new villa rents decreased by 3.9% year-on-year. The rental market in Dubai has seen significant growth, with a total increase of 14.5% year-on-year in average rentals.
Apartments dominated this growth, with rents rising by 14.2% year-on-year, driven by new leases, which rose by 25% year-on-year, while rental prices for renewals grew by 10.3% year-on-year. The villas also showed a strong performance, with average rents rising by 19.9% year-on-year. New villa rents rose 20.4% year-on-year, while renewed rents grew by 15.8% year-on-year.