As of 2024, the United Arab Emirates (UAE) maintains its status as a leading economic hub in the Middle East, with a nominal GDP estimated at approximately $545.1 billion. The nation’s strategic diversification efforts have reduced its dependence on oil, emphasizing sectors such as tourism, real estate, financial services, and advanced manufacturing. This economic diversification has reinforced the UAE’s role as a pivotal trade and business center in the Gulf region, with policies that significantly influence the broader Middle Eastern economy.
Current Economic Environment
UAE’s economy demonstrates robust growth and stability, with the Central Bank of the UAE projecting a 4.0% GDP growth rate for the year 2024. This expansion is driven by strong performances in key sectors such as tourism, financial services, construction, and real estate. The growth is expected to accelerate to 4.5% in 2025 and 5.5% in 2026, reflecting sustained diversification efforts and strategic investments.
The inflation rate in the UAE increased to 3.01% from 2.38% in October. The Central Bank of the UAE has revised its inflation forecast for 2024 downward to 2.3%, citing lower-than-expected increases in commodity costs, incomes, and rents. This moderate inflation rate suggests that the UAE’s economy is experiencing stable price levels, which is conducive to sustained economic growth and consumer confidence.
Real Estate in UAE
As of December 2024, the United Arab Emirates (UAE) real estate market continues to exhibit robust growth, driven by strong demand across various sectors. Below is an analysis of the current performance, supported by recent data and trends.
Residential Sector
Dubai: The residential market has experienced significant activity, with a 50.3% annual increase in off-plan transaction volumes during Q3 2024. Year-to-date sales transactions have risen by 35.6%, indicating sustained investor confidence. Approximately 7,400 units were delivered in Q3, with an additional 13,500 units scheduled for completion in Q4. Rental prices have also surged, with apartments seeing a 19.1% increase and villas a 12.5% rise, reflecting strong demand for premium housing.
Abu Dhabi: The residential sector has shown positive trends, with average apartment prices registering a year-on-year increase of 6.2% and villa prices growing by 3.9% in Q2 2024. This growth is attributed to heightened demand and limited supply in prime locations.