UAE’s leading real estate company, Primo Capital Experts has published a thorough study for Q2 2024 that highlights significant market trends and strong growth in the UAE's real estate market. Based on its findings, Primo Capital has identified important indicators and significant breakthroughs impacting the sector as the region navigates changing economic conditions in all unit categories

Residential Market Overview: The residential market of  Dubai saw unheard-of levels of activity in the second quarter of 2024, with overall transaction volumes hitting an all-time high of 35,310 transactions—a significant 20.5% rise year over year. The substantial 23.9% increase in off-plan property transactions coupled with a noticeable 15.2% increase in secondary market transactions were the main drivers behind this surge. This trend in UAE properties underscores the enduring confidence among prospective buyers and catered strong demand in the industry.  

The rising trend of property prices is indicative of a dynamic market sentiment. The average cost of a home in Dubai increased by 20.7% year over year, with rises of 20.4% and 22.1% for flats and villas, respectively. This acceleration confirms that, despite wider economic shifts, Dubai remains a top destination for real estate investment worldwide.

The average price of a villa in Abu Dhabi increased by 2.3% year over year, while the average price of an apartment increased by 4.3%, indicating continuous expansion in the residential sector of the emirate.

Commercial and Industrial Sectors: In Dubai, the commercial real estate market has shown remarkable performance, with average rents increasing by 22.2% annually and 17.1% quarterly.  This rise happened because the companies & businesses required expansion in the thriving economy of the UAE. Moreover, the requirements for warehouses & storage rooms to distribute and supply goods in Dubai increased annual rental rates by up to 14.3% in the industrial & logistics sector.

Hospitality and Retail Markets: The hospitality industry in the United Arab Emirates continued to do well despite high visitor rates. An annual increase of 0.9 percentage points was observed in average occupancy rates, indicating the sector's resilience and adaptability.

The significant increases in retail rental rates that both Abu Dhabi and Dubai saw in the year preceding Q1 2024—average rentals rising by 14.7% and 10.5%, respectively—are indicative of a supply-demand mismatch and increased commercial activity.

Comparison to Previous Quarters: On the contrary, Q2 2024 saw a faster increase in several categories than Q2 2023:

  • Residential transaction volumes increased by 20.5% year-on-year.
  • Average residential prices in Dubai rose by 20.7% year-on-year.
  • Commercial rents in Dubai surged by 17.1% quarter-on-quarter.
  • Industrial rents in Dubai increased by 14.3% year-on-year.
  • Average retail rents in Abu Dhabi grew by 14.7% year-on-year.

The real estate agents working at Primo Capital have predicted the continual growth of UAE real estate based on factors including a strong economy, substantial ROI, higher capital returns & favorable policies of the UAE government practicing in the country.

According to Mohammad Zeaiter, Senior Property Advisor at Primo Capital, leading developers in UAE have shifted their focus from one rigid design to customer-centric construction, giving the buyers the freedom to choose, change & customize according to their tastes & preferences. Moreover, the fertile grounds of real estate market guarantees steady ROI & higher capital gain are captivating the international investor's interest more than any other major metropolitan cities including New York, London, Singapore & Hong Kong, he added.

About Primo Capital:

Primo Capital is one of the reputable names in the real estate industry. With a steadfast commitment to excellence & decade of expertise, this real estate agency in Dubai has secured a reputable position among leading developers, foreign investors & prospective buyers. underscoring its exceptional rapport and fruitful collaborations with esteemed developers including Emaar, Nakheel, Dubai Properties, DAMAC, Omniyaat, Nakheel, Merras & other leading developers of UAE, Primo Capital is their authorized channel partners! Primo Capital offers a wide choice of off-plan and move-in ready solutions catered to a diversified clientele, with a portfolio of over 5,000 homes and partnerships with over 100 recognized developers. Investing with Primo Capital guarantees financial success as well as peace of mind because of the company's outstanding reputation and unwavering commitment to customer satisfaction. Primo Capital is a dependable partner in Dubai's real estate industry, and it is the first choice for astute investors looking for quality and dependability. Primo Capital is prepared to provide unmatched service and outstanding value.

For further information and personalized consultation, visit Primo Capital's official website.