UAE Residential Market Review Shows Strong Growth and Record Transactions in Q1 2024 | Kanebridge News
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UAE Residential Market Review Shows Strong Growth and Record Transactions in Q1 2024

The total transaction volume in Abu Dhabi for the first quarter of the year reached 2,795.

Thu, May 16, 2024 1:31pmGrey Clock 4 min

The CBRE Middle East, a global leader in commercial real estate services and investments, released its latest edition of the UAE Residential Market Review for the first quarter of 2024.

Abu Dhabi Market Overview

During the first quarter of the year, the total volume of transactions in Abu Dhabi stood at 2,795, registering a 22.6% increase compared to the year prior. This increase has been underpinned by an 18.1% rise in off-plan sales and a 34.5% rise in secondary market sales. In the year to Q1 2024, Abu Dhabi’s average apartment and villa prices increased by 4.3% and 2.3%, respectively.

Abu Dhabi’s rental market witnessed a total of 46,130 residential rental contracts in Q1 2024, registering a decline of 10.9% from the year prior. This has been due to a 15.5% decline in the number of renewed rental contracts registered and a 2.4% drop in new rental registrations over the same period. In the year to Q1 2024, average apartment and villa rents have increased by 4.5% and 1.1%, respectively. On the supply front, only 80 units have been delivered in Abu Dhabi in the first three months of the year, with all of this new stock being in Al Raha Beach. An additional 8,660 units are expected to be completed by year-end with 55.8% of this scheduled stock located in Yas Island, Al Sowwah, and Al Shamkha.

Dubai Market Insights

In Dubai, price growth has continued to accelerate during the first quarter of 2024, with average prices increasing by 20.7% in the year to March 2024. Throughout this period, average apartment and villa prices increased by 20.4% and 22.1%, respectively. Although headline average sales rates are still marginally below the 2014 highs by 0.1%, several prominent residential neighbourhoods have already surpassed their 2014 figures.

As of March 2024, average apartment prices stood at AED 1,486 per square foot, and average villa prices reached AED 1,776 per square foot. Average villa sales rates are currently above their 2014 baseline by 22.9%. Rental growth has also gained momentum in 2024, after a period of moderation in 2023. In March 2024, average residential rents registered a year-on-year increase of 21.2%, up from the 20.4% growth registered a month earlier. Over this period, average apartment and villa rental rates grew by 22.1% and 14.5%, respectively. Data from the Dubai Land Department revealed that, in the year to date to March 2024, the total number of rental registrations stood at 159,941, marking an increase of 5.8% from the previous year. As for supply, a total of 6,526 units were delivered in the first quarter of the year, with 59.7% of this supply being located in Meydan One, Jumeirah Village Circle, and Al Furjan. A further 46,086 are expected to be handed over the remainder of the year. However, given historic materialisation rates, the report expects that a limited portion of this upcoming stock will come online as planned.

Record-Breaking Transactions

March 2024 witnessed another record in Dubai’s residential market, with transaction volumes reaching the highest monthly figure on record, marking a year-on-year growth of 13.2%. Throughout this period, off-plan sales and secondary market sales increased by 20.2%, and secondary market sales increased by 2.2%.

In the first quarter of 2024, Dubai’s total transaction volumes reached 35,310. This is the highest total ever recorded in the first quarter of the year, marking an increase of 20.5% from the year prior. Over this period, off-plan transactions recorded an increase of 23.9%, and secondary market transactions rose by 15.2%.

However, in Q1 2024, the total number of sales transactions within the prime market segment registered a decline of 2.1% compared to the year prior. Throughout this period, super-prime transactions recorded a drop of 16.5% year-on-year to stand at a total of 227. These declines witnessed in both markets have been largely underpinned by significant declines in off-plan sales largely attributable to the high levels of demand for off-plan properties and the limited level of upcoming supply. In terms of performance, in the first quarter of 2024, average prime prices registered a year-on-year increase of 16.0%, standing at an average of AED 4,661 per square foot, and average super-prime prices grew by 14.8% over this period, reaching AED 4,978 per square foot.

Taimur Khan, CBRE’s Head of Research MENA in Dubai

Future Projections 

Looking ahead, CBRE expects Dubai’s residential sales market to maintain its upward trajectory. Prices in both the apartment and villa segments of the market will continue to grow, however, not at the same pace. On the rental front, we forecast that residential rents will continue to increase. That being said, the rate of growth will likely moderate.

Taimur Khan, CBRE’s Head of Research MENA in Dubai, comments: “The UAE’s residential market started the year on a relatively strong note, where the elevated demand levels continue to drive performance. The strong levels of activity and high absorption levels, which have reduced available supply, will continue to support price growth in both Abu Dhabi and Dubai over the remainder of the year. In terms of rental growth, we expect that rental rates in Abu Dhabi will continue to rise, with prime areas set to outperform the market. In Dubai, residential rents will continue to increase; however, not at the same rate that we have been seeing to date, and we expect that the rate of change will diminish in the second half of the year.”



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Economic Bridges: Supporting Middle Eastern Migration to the U.S.

The United States has consistently served as a magnet for immigrants in search of fresh prospects, with Middle Easterners notably contributing to this influx.

Tue, May 14, 2024 3 min

Historical data illustrate significant demographic growth: from fewer than 200,000 in 1970 to approximately 1.5 million by 2000, according to a Center for Immigration Studies analysis of Census Bureau data.

By 2020, this figure rose to over 3.5 million, representing 1.5% of the population identified as White alone or in combination, as per U.S. Census Bureau findings.

Projections for 2024 suggest that the number of Middle Eastern immigrants, including both documented and undocumented, will continue to exceed earlier estimates, signalling sustained strong growth.

This vibrant community, originating from a region rich in history and culture, enriches the multifaceted demographic fabric of the United States, particularly in states like California, Michigan, New York, Texas, and Florida.

U.S. Immigration Pathways

Among the paths used by Middle Eastern immigrants for gaining permanent residency in the U.S., we name the family-based immigration, which is the most common, allowing U.S. citizens and lawful permanent residents to sponsor relatives.

Employment-based (“EB”) visas such as EB-1, EB-2, EB-3, and EB-4 cater to individuals with extraordinary abilities, advanced degrees, or specific valuable skills, including religious workers.

The Diversity Visa Lottery offers up to 50,000 visas annually to people from countries with low immigration rates to the U.S. Those fleeing persecution may seek refuge under asylum or refugee status, while Special Immigrant Visas are designated for certain workers, including those from Iraq and Afghanistan who have assisted the U.S. government.

In the realm of investment and job creation, the EB-5 Immigrant Investor Program stands out by offering permanent residency to foreign investors who meet specific capital investment and job creation criteria, making it a vital pathway for those looking to engage deeply with the U.S. economy.

Middle Eastern immigrants, with their high educational attainment and strong presence in various entrepreneurial landscapes, are particularly well-suited to leverage the EB-5 program.

EB-5 Immigrant Investor Program: A Gateway to Growth

Introduced in 1990, the EB-5 Immigrant Investor Program has emerged as a significant source of investment for development projects across the United States, attracting billions of dollars to the U.S. economy and creating tens of thousands of jobs.

Managed by U.S. Citizenship and Immigration Services (“USCIS”), this program is unique as it is the only visa program specifically aimed at stimulating economic growth through job creation.

The program requires foreign investors to invest a minimum of $1.05 million, or $800,000 in areas with Target Employment Area (“TEA”), leading to the creation of at least 10 jobs to qualify for permanent residence in the U.S.

There are 10,000 EB-5 visas available each fiscal year. Investors have the option to invest directly in a job-creating business or through Regional Center approved by USCIS to promote economic growth in designated areas. After initial approval, the investor gains conditional residence for two years. To convert this to permanent residency, the investment must have led to the creation of at least 10 jobs for minimum 2 years.

Promising Outlook for EB-5 Investors

Fiscal Year 2024 is shaping up to be exceptionally favorable for EB-5 investors, with an estimated 22,233 visas available, subject to final adjustments. This increase is largely due to the carryover provisions in the EB-5 Reform and Integrity Act of 2022, allowing unused visas from previous years to accumulate.

Industry experts anticipate a significant boost in visa allocations, providing a unique opportunity for investors, especially those from regions like the Middle East where high educational attainment and entrepreneurial spirit abound.

Regional Centers and Economic Impact

Regional Centers play a crucial role in the EB-5 investment framework. These economic entities, which may be public or private, focus on pooling investor funds for projects that enhance regional productivity, job creation, and capital investment.

Although Regional Center designation by USCIS does not imply government endorsement or risk elimination, it allows investors to benefit from a broader definition of job creation, which includes both indirect and direct job creation metrics.

Therefore, if you’re a Middle Eastern individual looking to explore EB-5 investment opportunities, we are here to offer you an expert guidance and comprehensive support. To learn more about how the EB-5 visa can facilitate your pathway to permanent residency and economic success in the U.S., you only need to reach out to us on this email: marie@kanebridgenewsme.com

 

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