UAE - The residential rental market in the Northern Emirates saw sustained market growth driven by strong economic fundamentals, proactive government initiatives and continued investor confidence, according to global real estate services company Asteco.

The region's prime markets of Ras Al Khaimah, Sharjah and Ajman witnessed increased tenant relocation from Dubai, driven by affordability, lifestyle factors and improved infrastructure. The rental rates too rose by 4% to 8% in early 2024 before stabilising at 3%, stated Asteco in its Q4 2024 real estate report.

Ras Al Khaimah’s transaction value surged by 78% for the fourth quarter, followed by Sharjah (48%) and Ajman (21%). This growth was driven by approximately 20,000 new project launches, particularly in luxury-branded residences, reinforcing the region’s appeal as an investment hub, it added.

The Asteco report also outlines significant trends in Abu Dhabi, Dubai, the Northern Emirates, and Al Ain, providing key insights into market activity, supply, demand, and price movements.

On the Abu Dhabi market, the real estate expert said approximately 5,600 residential units were delivered across the emirate in 2024, with key completions in Yas Island, Saadiyat Island, Jubail Island and Al Raha Beach.

Notable new project launches included branded residences such as W Residences on Al Maryah Island, Elie Saab Waterfront on Reem Island and the Mandarin Oriental Residences on Saadiyat Island. Additionally, the Abu Dhabi Housing Authority introduced Yas Canal, a development featuring 1,146 units for Emirati citizens, it stated.

According to Asteco, the residential rental market saw sustained growth, with high-end and prime apartments experiencing rental increases of 6% to 10% annually, particularly in Saadiyat Island, Yas Island and Al Raha Beach.

The villa market remained robust, with luxury villas in Saadiyat Island registering rental increases of up to 15%. The office sector also witnessed strong demand, particularly for Grade A office space, where rents increased by 10% to 12% year-on-year due to limited supply and strong business expansion, it added.

The Al Ain real estate market recorded steady growth in 2024, with rental rates rising across all asset classes. Apartment rental rates increased by up to 10% annually, while villa rents grew at a more modest annual rate of 4%.

The office market in Al Ain remained stable, with rental rate growth ranging between 1% and 5% in key business districts. Retail leasing also showed positive momentum, with community shopping centres and malls seeing minor rental increases, while street retail rents rose by as much as 3% annually.

New residential supply in Al Ain remains limited, with upcoming developments mainly consisting of small-scale projects catering to local demand, said Asteco in its report.

However, two major retail projects, the expansion of Al Jimi Mall and the completion of Al Mutarid Lifestyle Centre, are set to increase the city’s commercial offering by a combined 100,000 sq. m. of gross floor area in 2025, it added.

On the Dubai scenario, Asteco said it continued to experience a high volume of new project launches and strong transactional activity throughout 2024.

The total residential supply increased significantly in 2024 with the delivery of over 33,000 residential units; an additional 65,000 units are expected in 2025. New villa launches remained stable at 21,000 units, while apartment launches surged by nearly 50% compared to the previous year, reaching approximately 140,000 new units, stated the report.

Rental rates for both apartments and villas recorded quarterly growth of approximately 2% to 3%, with variations depending on location and community, it added.-TradeArabia News Service

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