GoldCoast Uae

Q1 2024 Update: Dubai and Abu Dhabi Real Estate Markets Exhibit Resilience and Growth

Dubai’s Robust Real Estate Performance

Dubai’s strong economic performance and commitment to enhancing the quality of life continue to attract a substantial number of expatriates. Asteco’s Q1 2024 report highlights that over 10,000 residential units were delivered in Dubai during the first three months, including 7,300 apartments and 2,750 villas. This significant increase compared to the previous quarter sets a promising trajectory for the year, with an additional 30,000 units expected to enter the market by the end of 2024.

Rental Rates

Rental rates in Dubai presented a mixed picture over the past three months. While average rental rates for apartments and villas remained relatively unchanged, growth varied across different communities. Annual growth rates slowed to single digits, with villas at 6% and apartments at 10%.

Despite a 4% decline in new contract issuances in Q1 2024 compared to the previous quarter and the same period last year, the volume of renewals saw a 5% quarter-on-quarter and 12% year-on-year increase. Numerous tenants consented to above-average rental hikes.

Sales Prices

Average sales prices for both apartments and villas in Dubai remained stable throughout Q1 2024, with annual growth rates standing at 6% for apartments and 8% for villas. Buyer preferences shifted towards established communities such as Jumeirah Village Circle (JVC), Business Bay, Dubai Marina, and Downtown Dubai. These areas gained traction due to higher Return on Investment (ROI), lower initial investment costs, greater rental demand, higher occupancy rates, and shorter vacancy periods. The off-plan market remained prominent in both value and volume of transactions.

Abu Dhabi’s Promising Residential Sales Market

Abu Dhabi’s residential sales market is on a promising growth trajectory, as observed in the first quarter of 2024. The market saw the completion of 800 residential units across various Investment Zones, with a significant portion concentrated in Al Raha Beach. Notably, the launch of Yas Canal, a mega villa project within the same area, aims to deliver 1,146 units exclusively for UAE nationals by Q4 2027.


Rental Market

Throughout Q1 2024, the rental market for villas and apartments in Abu Dhabi remained generally stable. Prime and high-end developments experienced significant demand, leading to rental increases of 7% to 10% compared to the previous year, particularly for new contracts. The upward trend in rental rates for high-quality office space that began in 2023 continued into 2024, with some developments seeing increases ranging from 5% to 7%.

The limited availability of premium office space, coupled with growing demand from expanding businesses driven by government efforts to attract foreign investment, contributed to the surge in rental rates.

Sales Market

The sales market in Abu Dhabi witnessed a significant increase in transactions during Q1 2024, with approximately 2,660 deals recorded for apartments and villas—a notable 17% rise compared to the same period last year. Off-plan sales constituted a substantial portion of these transactions, accounting for about 1,840 deals (69% of the total), representing a 2% growth from the previous quarter. While average apartment sales prices remained relatively unchanged, a notable surge was observed in the upper and luxury segments located on Yas and Saadiyat Islands. Average villa sales prices experienced modest quarterly increases of 1% to 3%, with year-on-year growth reaching 10% to 15%.

Northern Emirates Market Performance

Asteco’s report also highlighted the strong performance of the Northern Emirates market in Q1 2024. Average apartment rental rates increased by 4% over the quarter and 9% annually, with high-end properties experiencing slightly more pronounced growth rates. Ras Al Khaimah led the rental rate escalation, followed closely by Sharjah and Ajman.

Al Ain Market

In Al Ain, average rental rates remained steady across all asset classes, underpinned by sustained demand driven primarily by domestic factors. While apartment rental rates were broadly stable, adjustments were observed in the highly price-sensitive lower-end segment. Conversely, high-quality villas experienced significant annual rental growth of up to 8%, depending on location and condition.


The real estate markets in Dubai, Abu Dhabi, and the Northern Emirates are demonstrating notable resilience and potential for continued growth. This positive outlook is driven by strong economic performance and strategic government initiatives aimed at enhancing the quality of life and attracting foreign investment. Shifting buyer preferences towards established communities and high-quality developments further bolster market stability. The mixed but generally positive trends in rental rates and sales prices across these regions indicate a robust market foundation