UAE Condominiums and Apartments Market Size

UAE Condominiums & Apartments Market Analysis

• The UAE condominium and apartment market is estimated to register a CAGR of more than 4% during the forecast period.
• Due to the COVID-19-related lockdowns, the market took a hit. Both the property prices and transactions in the market declined. The total transaction volume in Dubai was down by 11% compared to 2019. Apartment prices in Dubai decreased by approximately 6% compared to 2019. However, since 2021, the market has started to recover. The volume of transactions in the market reached an all-time high of 88,028 in 2022.
• With a high focus on safety and security, Dubai has stood out as an appealing option, particularly for international investors and ex-pat owners. The sales prices for villas and apartments in the most-searched-for locales of Dubai experienced an increase of 1-19% in H1 2022. Given the impressive start to 2022, the growth in the sale and rent prices in Dubai indicates healthy demand for property in both the affordable and luxury segments of the market. Dubai Marina, Palm Jumeirah, and Downtown Dubai are the most popular places to rent luxury apartments in the Emirate. Jumeirah Village Circle (JVC) and Business Bay are the most sought-after locations for those looking for affordable apartments in Dubai. Potential buyers for affordable apartments were most likely to look at the Business Bay, Damac Hills 2, Jumeirah Lakes Towers (JLT), and Jumeirah Village Circle (JVC) areas of the city.
• The sales prices for residential properties in Abu Dhabi rose by 1-14% in the affordable segment, whereas those in the luxury segment climbed by 1-8%. The most popular locations for renting luxury apartments in Abu Dhabi are Al Reem Island, Al Raha Beach, and the Corniche area. Al Reem Island remained a firm favorite for renting high-end apartments in H1 2022, showing a moderate growth of up to 3.5% in asking rents. Those looking for affordable apartments in the capital will most likely turn their attention to properties in Khalifa City A, Al Khalidiya, and Al Muroor. The Abu Dhabi market has continued to build on its strong foundations with a drive toward building robust systems and processes. Abu Dhabi has been repeatedly recognized as one of the safest and best cities to live in the world by various international bodies. The transparency levels in the market have also improved considerably, leading to greater confidence from buyers and investors.