The real estate markets in both Dubai and Abu Dhabi are thriving, with record-breaking transaction volumes and values. The dynamic nature of the UAE’s real estate landscape promises lucrative opportunities for investors and stakeholders alike. Here are the top five trends and updates we’ve identified in Q2 2024:

1. Dubai Real Estate Hits New Highs

In an impressive surge, Dubai’s real estate market broke previous records in the second quarter of 2024. According to portal Property Finder, the city recording 43,522 transactions, marking a 45% increase compared to Q2 2023. The total value of these transactions rose by 37%, reaching AED 124.4 billion ($33.9 billion).

This growth surpasses the previous high with a 17% increase in market volume since Q1 2024 and a 2% rise in transaction values from Q4 2023. Such growth highlights Dubai’s attractiveness to investors and the robust health of its property market.

2. Abu Dhabi’s Success

Not to be outdone, Abu Dhabi also saw significant growth, recording over 2,489 transactions worth nearly AED 6.7 billion in Q2 2024. The volume of transactions in existing properties in Abu Dhabi saw a 41% year-on-year increase, totaling approximately 1,166 transactions. This led to a 42% rise in transaction values, reaching AED 3.8 billion compared to AED 2.7 billion in Q2 2023.

3. Preference for Ready Properties in Abu Dhabi

Existing properties in Abu Dhabi accounted for 57% of the total sales transaction value, a rise from 33% in Q2 2023. This indicates a growing preference for ready properties, likely driven by quicker returns on investment. Conversely, Abu Dhabi saw about 1,323 off-plan transactions, constituting 53% of the total transactions and amounting to AED 2.87 billion, or 43% of the total transactional value.

4. Dubai’s Off-Plan Market Nears Peak

Dubai’s off-plan market showed strong performance, nearly reaching its 2009 peak with 26,268 transactions in Q2 2024, a 1% difference from the 26,629 transactions recorded in 2009. This represents an 80% year-on-year increase compared to Q2 2023, where 14,596 transactions were recorded. The off-plan sector accounted for 60.4% of the total transaction volume, a rise from 51% in Q2 2023.

Moreover, the value of off-plan transactions hit a record high of AED 53.214 billion, surpassing the previous peak of AED 47.416 billion in Q3 2023 by 12%. Consequently, off-plan transactions made up 57% of the total transaction value, showing a 54% year-on-year increase from Q2 2023.

5. Dubai’s ready properties sales are strong, but not as much as Off-Plan

Despite a 12% year-on-year increase in volume, with nearly 17,254 ready property transactions, the value of these transactions rose by 27%, reaching AED 71 billion compared to AED 56 billion in Q2 2023. However, existing properties only accounted for 39.6% of the total sales transactions in the quarter, indicating a growing preference for off-plan properties in Dubai.