< PreviousFINAL KEYS 80 EMIR A T E OF OP POR T U NI T Y Breaking records, challenging conventions, and setting new global standards, the property market in 2024 emerged as a beacon of innovation, luxury, and strategic economic development As we approach the end of 2024, the UAE real estate market stands as a testament to resilience, dynamism, and unparalleled growth. With record-breaking transaction values and volumes, the market has not only exceeded expectations but also set new benchmarks that underscore the UAE’s global appeal as a premier real estate destination. A YEAR OF UNPRECEDENTED GROWTH The UAE real estate market experienced extraordinary momentum in 2024, achieving historic highs with 144,813 transactions recorded year-to-date. October alone saw a total sales value of AED 50 billion, a 75% increase compared to the same month in 2023. Apartment sales soared by 76% year- Images supplied by: Shutterstock on-year, making up 79% of all Dubai sales transactions. The stability of interest rates played a signifi cant role in driving this growth. With over 500 days without a rate increase, borrowing costs remained attractive, encouraging buyers to enter the market. This fi nancial accessibility, coupled with an infl ux of high-net-worth individuals (HNWIs) to the UAE, created a perfect storm for robust demand. The ultra-luxury segment witnessed unprecedented activity, with a 333% increase in sales transaction volume. As per Allsopp & Allsopp’s October Market Snapshot, over 4,015 homes priced above $10 million were sold in 2024, signalling a seismic shift in buyer preferences toward high-end properties. Left: Apartment sales soared by 76% y-o-y making up 79% of all Dubai sales transactions Right: Off -plan segment dominated the market in 2024; Smart homes will become the norm in 2025 CWPME_Dec2024_80-82_Final Keys_13458626.indd 8004/12/2024 19:01FINAL KEYS 81 PRIMARY DRIVERS OF THE MARKET’S SUCCESS Several factors contributed to the UAE’s record-breaking year: • Increased aff ordability: No change in interest rate reduced the cost of borrowing, making homeownership more accessible for fi rst-time buyers and investors alike. • Infl ow of HNWIs: Dubai’s reputation as a safe haven for wealth and its competitive tax policies continued to attract global elites, further fuelling the demand for ultra-luxury and premium properties. • Off -plan sales boom: Developers launched over 39,000 off -plan units in 2024, yet demand consistently outpaced supply. Off -plan sales reached 30,378 transactions in Q3, up 64% from the same period last year. • Sustainable developments: Projects focussing on energy-effi cient designs and eco-friendly features saw rapid sell-outs, refl ecting a growing preference for holistic and sustainable living. KEY TRENDS THAT DEFINED 2024 • Rise of ultra-luxury properties: The demand for high-end homes surged, driven by the growing number of millionaires in the UAE. This trend is expected to continue, with the number of HNWIs projected to double over the next decade. • Surge in off -plan sales: The off -plan segment dominated the market, driven by strong investor interest and limited availability of ready properties. This aligns with the market’s broader trajectory, where demand consistently outpaces supply, leading to signifi cant capital appreciation for investors. • Sustainable living takes centre stage: Sustainability emerged as a pivotal theme in 2024, with buyers prioritising developments off ering green building practices and eco-friendly designs. • Mixed-use developments on the rise: Integrated communities combining residential, retail, and commercial spaces gained popularity, catering to modern buyers seeking convenience and holistic lifestyles. RESIDENTIAL SECTOR LEADS THE PACK The residential sector continued to dominate, accounting for 95% of October’s transactions. Both the luxury and mid-range markets thrived, refl ecting diverse buyer preferences. The commercial sector also experienced high demand but grappled with limited supply, especially in business hubs where offi ce occupancy rates remained robust. Developers are now focusing on addressing this gap through innovative mixed-use projects. The industrial and retail segments saw steady performance, buoyed by the UAE’s strategic location and its appeal as a global logistics hub. Retail spaces within mixed-use Buyers showed strong interest in properties off ering expansive outdoor spaces, natural materials, and connections to nature” CWPME_Dec2024_80-82_Final Keys_13458626.indd 8104/12/2024 19:01FINAL KEYS 82 developments also attracted considerable interest, further diversifying the market. Sustainability also took a front seat in 2024, as developers integrated green practices into their projects. From LEED-certifi ed buildings to energy-effi cient systems, the market is aligning itself with the UAE’s national sustainability goals. Buyers showed strong interest in properties off ering expansive outdoor spaces, natural materials, and connections to nature. PREDICTIONS FOR 2025: WHAT LIES AHEAD? As we look ahead to 2025, the UAE real estate market is poised for continued growth, driven by a mix of existing momentum and emerging trends: • Residential market to continue upward momentum: The high demand and limited supply are expected to persist, making the residential sector a cornerstone of the market. Developers will likely increase off - plan launches to meet buyer expectations. • Expansion of ultra-luxury segment: With the number of HNWIs set to grow, the ultra-luxury market will remain a strong performer. Properties in prime locations and iconic developments are expected to see record demand. • Sustainability as a non-negotiable factor: Eco-friendly and energy-effi cient developments will continue to gain traction. Buyers and investors will prioritise projects aligned with sustainability goals, further reinforcing the market’s green agenda. • Technological integration: Smart homes and tech-enabled developments will become the norm, off ering buyers cutting-edge amenities and convenience. • Growing appeal of mixed-use developments: Integrated communities blending residential, commercial, and retail spaces will gain prominence, catering to modern urban lifestyles. A MARKET ON AN UNSTOPPABLE TRAJECTORY The UAE real estate market in 2024 has been nothing short of extraordinary, marked by record-breaking performance and transformative trends. With the stage set for even greater achievements in 2025, the sector is poised to continue its upward trajectory, reinforcing the UAE’s position as a global real estate powerhouse. As we close the chapter on 2024, one thing is clear: the UAE’s real estate market is not just growing; it is redefi ning the standards of excellence in the industry. Whether you’re an investor, a buyer, or a stakeholder, the opportunities in 2025 are plenty. Left: Integrated communities blending residential, commercial, and retail spaces will gain prominence; Sustainability took a front seat this year CWPME_Dec2024_80-82_Final Keys_13458626.indd 8211/12/2024 16:20Untitled-5 105/12/2024 13:25Untitled-5 105/12/2024 13:24Next >