Throughout 2023, the UAE’s real estate sector has shown sustained growth and newer consumer preferences, welcoming increased foreign confidence and igniting great opportunities for the future.
Property Finder asked real estate’s industry leaders of its esteemed PF Awards to outline the top five property trends to look out for in 2024.
- More available properties: With a lot of new projects and off-plan developments entering handover stage in 2024, property seekers are most likely to have a wider range of options to choose from.
Richard Waind, CEO, Betterhomes, explains “In 2024, we might see more available properties, as sellers look to take advantage of current prices. Developers will also continue to launch new projects at an accelerated rate. This extra supply is mostly likely to keep the price rise we have seen over the last few years in check. For renters, there may be some relief towards the latter part of 2024, with the delivery of more new homes taking some pressure off the current rental market.”
For Ben Thomas, Head of Secondary, AX Capital, the market is in a maturing phase, highlighting sustainable growth. “Analyzing recent trends provides valuable insights into the market’s potential performance going into the new year. If we go back to the period of COVID rebound during late 2020, the market has displayed a more sustained pattern of growth, indicating a maturing phase rather than a speculative boom.”
- Mid-market stability: The mid-market seems to most likely be impacted by regulation in pricing.
“Only 24,000 units are set for delivery in 2024, this is half the number of units delivered in 2023. The majority of those set for completion are in affordable areas such as JVC, Arjan, IMPZ, and Dubai Land, with mid-market areas such MBR City, Dubai Hills, Dubai Marina, and Business Bay set to see properties handed over as well. This will likely add pressure to rental prices in affordable areas and somewhat stabilize the mid-market as rents become less sticky. In the upper segment of the market, with supply still not meeting the demand equilibrium, we will likely see rents stick and prices swing upwards,” adds Abdullah Alajaji, Founder, Driven Properties.
- Increased diversification: In Q2 and Q3 2023, both Dubai and Abu Dhabi have diversified at a rapid scale with greener areas on the block, surge in off-plan projects, ready property purchases, increased foreign confidence among property seekers and a consistent rate of growth for upscale properties during the initial half of 2023.
“Looking ahead to 2024, I anticipate a more diversified real estate market. Many of the off-plan projects initiated in previous years will reach their handover stages. As a result, 2024 will see Abu Dhabi achieving a balanced real estate market where leasing, resale, and off-plan sales will coexist harmoniously to cater to a wide spectrum of clients. Those who profitably sell their properties will have the opportunity to reinvest in the exceptional properties expected to enter the market in 2024. Moreover, investors who experienced rapid capital gains from their 2023 investments will likely remain confident and continue their real estate ventures,” highlights Kika Pavese, Managing Director, MD Real Estate.
On the other hand, Louise Heatly, Owner and Managing Director, Exclusive Links Real Estate Brokers anticipates stable growth in 2024, between 3.5% and 5% for Dubai. The positive sentiment is fuelled by sustained population growth driven by a competitive economic landscape and government initiatives attracting global businesses and individuals. “The moderate growth rate, considering recent trends, is complemented by an increased pace of new build handovers and projects, potentially alleviating supply-side pressures. Dubai’s strategic approach to development positions it as an attractive destination for relocation across various industries. As we navigate through 2024, the real estate sector appears poised for continued expansion, supported by a well-thought-out combination of economic incentives and proactive government measures,” Louise adds.
- New ways of living: With the rise in ownership, there are several new trends emerging in the sector including short term rentals and flexible living options, driven by evolving lifestyles, career changes and technological advancements.
Nina Klishevich, General Manager, Blueground elaborates, “Flexible living solves the current tediousness of renting an apartment thanks to technology. This includes choosing and viewing a property, managing move-in details, apartment specifications, and maintenance requests through one convenient platform. Furthermore, tenants are given the freedom of flexible agreements and can avoid long-term commitments.”
- Seamless customer experiences: Back in 2007, when Property Finder was set up, there were hardly any digital property portals in the UAE. Today there are over 200 proptech companies in the region, actively contributing to simplifying real estate. As the sector adapts to newer ways of working, technology will continue to play a great role in the years to come.
In this scenario, it is important to prioritize investments in technology and talent to ensure seamless customer experiences across the entire property search journey. According to Kika, while we acknowledge the profound importance of personal relationships in the real estate business, it is impossible to ignore the ever-growing influence of Tech Integration paired with Artificial Intelligence.
“The technological advancements witnessed in the real estate industry have been nothing short of remarkable. These advancements are not confined to local markets but are extending their reach to global markets as well. The integration of technology is revolutionizing the way properties are bought and experienced. The 2024 property sector will be defined by the seamless integration of technology and AI, reshaping the way we engage with real estate and fostering greater trust and transparency in the industry,” she says.
An exciting time for real estate, as new listings emerge and old ones refresh, there is no doubt – property continues to play a great role in the nation’s growth, with a host of opportunities on offer. Better today than ever. As a leading property portal, Property Finder remains committed to simplifying property search processes for seekers through a wide range of tools and features created for more informed decision making.
Cherif Sleiman, Chief Revenue Officer, Property Finder concludes, “In the UAE, real estate has witnessed one of the most record breaking years to date in terms of ownership and rental properties with a growth in returns on investments. Entering the new year together with our partners, we look forward to making real estate better to get people living the life they deserve with seamless access to information and support powered by enhanced customer experiences.”
For more information on new projects in 2024, visit https://www.propertyfinder.ae/ or download the Property Finder app, available for download on Google Play and Apple Store. Follow Property Finder across Instagram, LinkedIn and Facebook for the latest data and insights.