Market Growth Driven by Economic Strength and Investor Confidence
One factor that has fueled the sustained growth of the residential rental market in the Northern Emirates is:
Strong economic fundamentals
Proactive government initiatives
Continued investor confidence
All prime markets such as Ras Al Khaimah , Sharjah and Ajman, according to the recent report on real estate for Q4 2024 by Asteco, boasted positive tenant relocation branches from Dubai for affordability, lifestyle enhancers improvement, and improving basic infrastructure.
Rental Price Trends in 2024
- Rent increased up to about 4-8% at the beginning of 2024, and there was a 3% stabilization soon after.
- The transaction value of Ras Al Khaimah gained 78%, followed by Sharjah, which earned 48%, and Ajman, which grew by 21%.
- Approximately 20,000 new project launches promise to establish the region more strongly as the ultimate investment destination, especially luxury-branded residences.
Key Trends in Abu Dhabi’s Real Estate Market
About 5,600 residential units will be delivered in 2024 from the established areas like Yas Island , Saadiyat Island , Jubail Island, and Al Raha Beach. Some of the most relevant launches include:
- W Residences (Al Maryah Island)
- Elie Saab Waterfront (Reem Island)
- Mandarin Oriental Residences (Saadiyat Island)
- Yas Canal (Abu Dhabi Housing Authority) – consisting of 1,146 houses intended for Emirati nationals.
Abu Dhabi Rental and Office Market Performance
- High-end apartment rentals and prime apartment rentals increased ranging from 6% to 10% annually.
- Saadiyat Island luxury villas have increased rents by as much as 15%.
- Limited supply and business expansion have influenced Grade A office spaces with approximately 10% to 12% year-on-year rental increases.
Al Ain Real Estate Market Overview
Rentals showed a stable growth across all the assets’ classes.
- Apartments saw annual increases of up to 10%.
- Villas were 4% annually higher.
Between 1% and 5% rise in office rental rates was registered in premier business districts.
Retail leasing got momentum:
- Community shopping centers and malls recorded low minor annual rental increases.
- Street retail rents, on the other hand, rose by approximately 3% per annum.
Two large retail projects will be completed in 2025.
- Al Jimi Mall Expansion
- Al Mutahid Lifestyle Center
- Together they cover 100, 000 sq. m. gross floor area.
Dubai’s Real Estate Market Continues Its Momentum
- Dubai was full of transactional activity and new project launches in 2024.
- Delivery of over 33,000 residential units occurred, while an additional 65,000 units are anticipated to be delivered in 2025.
- The launch of new villas stood at 21,000 units, while this in the form of apartments increased by almost 50% to around 140,000 possible new units.
- Rental apartment and villa rates grew quarter on quarter by 2 to 3% depending on location and community.
Conclusion
Apart from that, investing in Northern Emirates such as Ras Al Khaimah, Sharjah, and Ajman continues to captivate and entice prospective investors and tenants with very affordable prices coupled with sophisticated infrastructural facilities. The real estate market of the UAE is still on the upswing and with burgeoning residential and commercial developments taking place in Abu Dhabi, Dubai, and Al Ain, many consider it to be one of the premium destinations to invest in real estate in 2024 and beyond.
