UAE Condominiums & Apartments Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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.
UAE Condominiums & Apartments Market Trends
This section covers the major market trends shaping the UAE Condominiums & Apartments Market according to our research experts:
Luxury Apartment Prices Set to Witness a Steep Growth
Dubai's prime residential prices are set to see the strongest growth globally in 2023. The prices are set to rise 13.5% in 2023 as more foreign buyers and high-net-worth individuals are showing keen interest in the market. Dubai, along with neighborhood areas such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, is high on customers' lists. Dubai's relative affordability and prime home prices of around USD 800 per square foot make the city one of the world's most affordable luxury residential markets. Prime values are fuelled by Dubai's safe-haven status, an exceptionally diverse range of international ultra-high-net-worth individuals searching for (their) second luxury homes, combined with the government's world-leading response to the pandemic, which spurred business confidence. It is predicted that prime residential prices will rise by 2.0% on average in 2023, down from the 2.7% predicted six months ago. Despite this slowdown, aggregate growth in 2023 would still be higher than that recorded in six of the last 10 years.
The FIFA World Cup in Qatar was expected to boost property prices in Dubai. As per sector experts, due to the soccer tournament, which was held in the Middle East for the first time, there was a shortage of accommodation, implying that the spillover was expected to stay in the United Arab Emirates, primarily in Dubai. This factor boosted the already high property markets, leading to a boost in luxury real estate sales. World Cup-linked tourism positively impacted Dubai's hospitality sector, including its short-term rental market. Brokers expect to see a big impact on luxury-residential real estate, which has undergone a boom since the onset of the pandemic. As per reports, prime properties in some neighborhoods of Dubai have already doubled their prices and have seen good bookings by high-net-worth individuals.
Record Growth in Transactions Driven by Offplan Properties and Apartments
The value of real estate market transactions in Dubai surpassed AED 240 billion (USD 65.33 billion) in 2022, recording a 61% gain compared to the previous year. The Dubai market also experienced a record-breaking year in 2022, where registered sales reached 88,028 transactions as of November 2022, up from 60,258 transactions in 2021, representing a significant increase of 46% and surpassing the market peak in 2013 by 38%. The success of 2022 was led by the sale of off-plan properties in Dubai, which showed a growth of 86% in comparison to the previous year. In 2022, off-plan transactions accounted for 44% of total transactions, up from 40% in 2021, reaching AED 83 billion (USD 22.59 billion). When it came to property types, apartments dominated the Dubai market in 2022, representing 85% of the transitions, with villas/townhouses representing the remaining 15%.
In contrast to 2021, when transactions were valued at about AED 44.6 billion (USD 12.14 billion), the value of transactions climbed to 35% of all transactions by reaching a total of AED 83 billion (USD 22.59 billion). The first sales transactions for apartments saw the largest numbers (in value). In contrast, the overall value of the transactions for villas/townhouses beat the previous mark established in 2021 to be the highest ever recorded. Due to the volatile market conditions, 2022 saw shifts in consumer behavior. The market had a record-breaking performance due to rising demand, recent events and initiatives like the FIFA World Cup, the golden visa, and larger attempts to shift to a digitally driven economy. The most frequently searched apartment neighborhoods in 2022 were in the city's core, including Palm Jumeirah, Downtown Dubai, Jumeirah Village Circle, Jumeirah Beach Residences, and Jumeirah Lakes Towers.
UAE Condominiums & Apartments Industry Overview
The UAE real estate sector is booming. Despite many challenges, it continues to grow and expand. With the emergence of some big and small developers, the market is seeing a lot of competition. On account of the strong infrastructure, the various real estate projects are attracting investors from across the world. Some of the major players in the market include Emaar, Damac, Meraas, Aldar, and Arada. According to a report published by Berkshire Hathaway HomeServices' global headquarters, more than 84% of real estate professionals expect competition within Dubai's real estate market to ramp up in the future.
UAE Condominiums & Apartments Market Leaders
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Emaar Properties
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Damac Properties
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Nakheel Properties
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Deyaar Properties
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Aldar
*Disclaimer: Major Players sorted in no particular order
UAE Condominiums & Apartments Market News
- October 2022: Damac Properties unveiled a luxury residential project in Dubai's Business Bay, featuring interiors designed by Swiss jeweller De Grisogono, to meet growing demand in the prime market. The 41-storey Chic Tower will include studios, as well as one and two-bedroom apartments. It plans to add three and four-bedroom apartments with 'hydroponic walls and sky pools' at a later stage. Chic Tower will also feature amenities such as seven baths, a beauty bar, and sky gyms. Damac did not disclose the total cost of the project or the construction schedule.
- November 2022: Nakheel PJSC secured AED 17 billion (USD 4.6 billion) in financing from a group of local lenders, as it seeks to kick off new projects amid a property boom in Dubai. The company raised AED 11 billion (USD 2.99 billion) to refinance and consolidate its existing debt. Nakheel will use the remaining AED 6 billion (USD 1.63 billion) to accelerate the development of its new projects, including Dubai Islands and other large waterfront projects. The financing was secured through a syndicate of three local lenders, namely Emirates NBD PJSC, Dubai Islamic Bank PJSC, and Mashreqbank PSC.
UAE Condominiums & Apartments Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects for Residential Real Estate Sector
4.4 Insights into Size of Real Estate Lending and Loan to Value Trends
4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Rental Yields in the Residential Real Estate Segment
4.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
4.8 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships
4.9 Insights into Real Estate Tech and Start-ups Active in the Real Estate Segment
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Value Chain/Supply Chain Analysis
5.5 Porter's Five Forces Analysis
5.5.1 Threat of New Entrants
5.5.2 Bargaining Power of Buyers/Consumers
5.5.3 Bargaining Power of Suppliers
5.5.4 Threat of Substitute Products
5.5.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 Key Cities
6.1.1 Dubai
6.1.2 Abu Dhabi
6.1.3 Sharjah
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Emaar Properties
7.2.2 Damac Properties
7.2.3 Nakheel Properties
7.2.4 Deyaar Properties
7.2.5 Aldar
7.2.6 Azizi Developments
7.2.7 Meraas
7.2.8 Arada
7.2.9 Omniyat
7.2.10 Dubai Properties
7.2.11 MAG Property Development
7.2.12 Sobha Realty
7.2.13 Select Group
7.2.14 The First Group
7.2.15 Meydan*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
UAE Condominiums & Apartments Industry Segmentation
Apartments are self-contained housing units that occupy only a portion of a building. An apartment can either be used by the owner or rented to a tenant. As opposed to a regular residential apartment, a condominium is a large residential complex in a gated community comprising residential units. The owner does not own the land on which the entire property is built, but only the condo.
The UAE condominiums and apartment market is segmented by key cities into Dubai, Abu Dhabi, and Sharjah. The report offers market size and forecasts for all the above segments.
| Key Cities | |
| Dubai | |
| Abu Dhabi | |
| Sharjah |
UAE Condominiums & Apartments Market Research FAQs
What is the current UAE Condominiums and Apartments Market size?
The UAE Condominiums and Apartments Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in UAE Condominiums and Apartments Market?
Emaar Properties, Damac Properties, Nakheel Properties, Deyaar Properties and Aldar are the major companies operating in the UAE Condominiums and Apartments Market.
What years does this UAE Condominiums and Apartments Market cover?
The report covers the UAE Condominiums and Apartments Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Condominiums and Apartments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Condominiums and Apartments Industry Report
Statistics for the 2024 UAE Condominiums and Apartments market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Condominiums and Apartments analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
