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Residential Real Estate Transactions - United Arab Emirates

United Arab Emirates

In the United Arab Emirates, the Residential Real Estate Transactions market market is anticipated to witness a significant increase in its transaction value.
By 2024, it is projected to reach a value of €2.79bn.
Furthermore, this market segment is expected to showcase a steady annual growth rate (CAGR 2024-2029) of 2.91%.
As a result, the market volume is estimated to reach €3.22bn by the year 2029.
Residential real estate transactions in the United Arab Emirates are experiencing a surge due to strong demand from local and international investors.

Key regions: Germany, Europe, Asia, United States, United Kingdom

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Analyst Opinion

The Residential Real Estate Transactions market in United Arab Emirates is experiencing significant growth and development.

Customer preferences: Customers in the United Arab Emirates have shown a strong preference for investing in residential real estate. This is partly due to the cultural importance placed on homeownership, as well as the potential for high returns on investment. Many customers are attracted to the luxury properties and high-end developments that are available in the country. Additionally, there is a growing demand for affordable housing options, particularly among the younger population.

Trends in the market: One of the key trends in the Residential Real Estate Transactions market in United Arab Emirates is the increasing popularity of off-plan properties. Many customers are opting to purchase properties before they are completed, often at a lower price than the market value. This allows customers to secure a property at a lower cost and potentially benefit from capital appreciation once the development is completed. The government has also introduced regulations to protect the rights of buyers and ensure transparency in off-plan transactions. Another trend in the market is the rise of sustainable and eco-friendly developments. With a growing awareness of environmental issues, customers are increasingly interested in properties that are energy-efficient and incorporate sustainable features. Developers are responding to this demand by incorporating green building practices and technologies into their projects.

Local special circumstances: The United Arab Emirates has a unique real estate market due to its large expatriate population. Many expatriates choose to live and work in the country for a limited period of time, which has led to a significant demand for rental properties. This has created a strong rental market, with many investors choosing to purchase properties for the purpose of renting them out. The government has implemented regulations to protect the rights of both landlords and tenants, which has further boosted the rental market.

Underlying macroeconomic factors: The growth and development of the Residential Real Estate Transactions market in United Arab Emirates can be attributed to several underlying macroeconomic factors. The country has a strong and stable economy, driven by industries such as oil and gas, tourism, and finance. This has created a favorable environment for real estate investment, as customers have the financial means to purchase properties. Additionally, the government has implemented policies to attract foreign investment and promote economic diversification, which has further stimulated the real estate market. In conclusion, the Residential Real Estate Transactions market in United Arab Emirates is experiencing significant growth and development. Customer preferences for residential properties, including off-plan properties and sustainable developments, are driving this growth. The unique circumstances of the local market, including the large expatriate population and strong rental market, are also contributing to the development of the market. Underlying macroeconomic factors, such as a strong and stable economy, are further supporting the growth of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.