Residential Real Estate - United Arab Emirates

United Arab Emirates

The Residential Real Estate market market in the United Arab Emirates is forecasted to reach a value of €0.36tn by 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.62%, leading to a market volume of €0.43tn by 2029.
When compared globally, China is projected to generate the highest value in the Real Estate sector, with €104.7tn in 2024.
The demand for luxury residential properties in the United Arab Emirates continues to rise, fueled by high-net-worth individuals seeking opulent living experiences.

Key regions: Europe, Brazil, France, Asia, United States

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

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

Customer preferences: Customers in the United Arab Emirates have a strong preference for luxury and high-end properties. The demand for spacious villas and apartments with modern amenities and high-quality finishes is on the rise. Additionally, many buyers are looking for properties in prime locations, such as Dubai and Abu Dhabi, which offer easy access to business districts, shopping centers, and recreational facilities.

Trends in the market: One of the key trends in the residential real estate market in the United Arab Emirates is the increasing demand for sustainable and eco-friendly properties. Buyers are becoming more conscious of the environmental impact of their homes and are seeking properties that are energy-efficient and incorporate green technologies. Developers are responding to this trend by incorporating sustainable features into their projects, such as solar panels, efficient insulation, and water-saving fixtures. Another trend in the market is the growing popularity of off-plan properties. Off-plan properties, which are sold before they are completed, offer buyers the opportunity to purchase properties at a lower price compared to completed units. This has attracted a significant number of investors who are looking to capitalize on the potential appreciation of the property value once it is completed.

Local special circumstances: The United Arab Emirates has a large expatriate population, with many foreigners living and working in the country. This has created a strong demand for rental properties, particularly in popular expat communities. Landlords are able to command high rental yields due to the limited supply of rental properties in these areas. Additionally, the government has introduced regulations to protect the rights of both landlords and tenants, providing a stable and secure rental market.

Underlying macroeconomic factors: The United Arab Emirates has a strong and stable economy, driven by sectors such as oil and gas, tourism, and finance. The government has implemented various initiatives to diversify the economy and reduce its reliance on oil revenue. This has attracted foreign investment and created employment opportunities, resulting in a growing population and increased demand for residential real estate. Furthermore, the United Arab Emirates has implemented favorable policies and regulations to attract foreign buyers and investors. These include allowing foreigners to own property in designated areas and offering long-term residency visas to property owners. These initiatives have boosted the real estate market and attracted both local and international buyers. In conclusion, the Residential Real Estate market in United Arab Emirates is experiencing growth and development due to customer preferences for luxury properties, trends such as sustainable and off-plan properties, local special circumstances such as a strong rental market, and underlying macroeconomic factors including a stable economy and favorable government policies.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and 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 are considered at a country-specific level.