In the 1st quarter of 2024 in Dubai, the sale and rental prices of housing increased by about 21% year-on-year, respectively. In Abu Dhabi, sales prices increased by an average of 7%, and rental rates increased by 4%. Such data are provided in the JLL MENA review.
Figures published Reidin.com , demonstrate a similar pattern. Dubai Residential Real Estate Price Index (RPPI) increased in January-March by 20.71% compared to the same period last year (16.81% adjusted for inflation). For comparison, it increased by 20.14% in 2023, by 9.53% in 2022, by 9.25% in 2021 and decreased by 7.12% in 2020, by 6% in 2019 and by 8.56% in 2018.
On a quarterly basis, housing prices in Dubai increased by 6.12% (5.57% adjusted for inflation).
By type of real estate (Dubai)
Apartment prices in Dubai in the 1st quarter of 2024 increased by 20.43% year-on-year (16.54% adjusted for inflation) and by 6.2% quarterly (5.66% adjusted for inflation). Growth accelerated compared to the 1st quarter of 2023, when it amounted to 12.4%.
Prices for villas in Dubai increased by 22.08% year-on-year (18.14% adjusted for inflation) and by 5.35% quarterly (4.8% adjusted for inflation). Growth accelerated compared to the 1st quarter of 2023, when it amounted to 14.82%.The average purchase price of apartments in Dubai by the end of 2023 was 1,500,000 dirhams (408,386 USD), and villas; 3 200 000 Dirhams (871,222 US dollars).
The growth of housing prices in Abu Dhabi is more restrained: the price index for all residential real estate in the 1st quarter of 2024 increased by 7.53% year-on-year (4.05% adjusted for inflation). Growth accelerated compared to the 1st quarter of 2023, when it was only 1.22%.
By type of real estate (Abu Dhabi)
Apartment prices in Abu Dhabi increased by 6.42% year-on-year (2.98% adjusted for inflation), which is an improvement compared to a slight increase of 1.22% in the 1st quarter of 2023. On a quarterly basis, prices rose by 2.37% (1.84% adjusted for inflation).
Prices for villas in Abu Dhabi increased by 12.97% year-on-year (9.32% adjusted for inflation). The growth a year earlier was only 1.19%. On a quarterly basis, prices increased by 2.81% (2.28% adjusted for inflation).Market history
From 2002 to 2008, real estate prices in Dubai increased almost fourfold, as the city became one of the fastest growing in the world. In March 2006, a law was passed allowing foreigners to own real estate, which strengthened the ambitions of the emirate. Billions of dollars have been spent on megaprojects including Jumeirah Garden City (estimated value: US$95 billion), Dubiland (US$64 billion), The Lagoons (US$25 billion), Palm Jumeirah (US$14 billion) and The World (US$14 billion). Then, at the end of 2008, the global credit crisis broke out. Transaction volumes have plummeted. Almost half of the construction projects in the UAE, worth about 1.1 trillion dirhams (US$300 billion), have either been suspended or canceled.When the economy returned to growth, the halted construction projects were resumed. From January 2012 to the end of 2014, Dubai saw a rapid increase in house prices, by an average of 21.5% per year. However, by the end of 2014, the recovery had slowed down. Since then, the market has been depressed. According to the Dubai Land Department, in 2015, the residential real estate price index (RPPI) in Dubai fell by 11% (-14.1% adjusted for inflation), in 2016 by 0.4% (-2.9% adjusted for inflation), in 2017 by 3.9% (-5.2% adjusted for inflation), in 2018 by 8.6% (-8.2% adjusted for inflation), in 2019 by 6% (-4.1% adjusted for inflation), in 2020 by 7.1% (-2.9% adjusted for inflation).
The housing market began to recover in 2021, when house prices in Dubai increased by 9.25%, and in Abu Dhabi by 1.56%. This trend continued in 2022: prices in Dubai increased by another 9.53%, and in Abu Dhabi by only 1.46%. Last year, the market continued to gain momentum, helped by steady demand. Prices in Dubai rose by 20.14%, and in Abu Dhabi by 4.96%.
The majority of buyers of residential real estate in Dubai and Abu Dhabi are UAE citizens, followed by Indians, Saudis, British and Pakistanis.
Source: Global Property Guide
