Having worked in the UAE’s property sector for much of my adult life, I always like to start the new year by considering what lies on the horizon. In my experience, one of the best ways of preparing for the future is by identifying trends among sellers, buyers and investors. After all, real estate companies that succeed in anticipating and adapting to consumer behaviour have a competitive advantage over their rivals.

Throughout 2023, our nation’s real estate market witnessed impressive levels of growth. Dubai in particular enjoyed an exceptional year, characterised by trends such as a remarkable surge in homeownership among expats and a booming luxury segment. In fact, our Emirate registered more than $102 billion in sales between 1 January and 12 December, thanks to a total of more than 124,000 transactions.

So, does our nation’s property market have what it takes to maintain this momentum? Here are five trends I’ll be monitoring in 2024…

An influx of wealth

Thanks to its thriving economy, opportunities to do business and quality of life, the UAE has long been seen as a global hub for high-net-worth individuals (HNWIs). Indeed, this trend appears to be accelerating, and is therefore likely to have a significant impact on our nation’s real estate sector.

According to a recent Bloomberg report, the UAE’s capital city is cementing its reputation as a ‘billionaire haven’, with thousands of HNWIs having established special-purpose vehicles (SPVs) in the Abu Dhabi Global Market (ADGM) during recent years. The Emirate’s financial centre now boasts more than 5,000 SPVs, which is especially impressive when one considers just 46 such vehicles existed in 2016.

More generally, analysts estimate that the UAE saw an influx of 4,500 millionaires in 2023, making it the world’s second most popular country for HNWI migration after Australia. As more and more wealthy individuals relocate to the Emirates, demand for real estate – especially in the premium segment – is likely to continue to rise, driving rents and property prices alike.

High-profile residents

A knock-on effect of this influx of wealth is the likelihood that larger numbers of high-profile individuals, such as business leaders, sports stars and celebrities, will look to acquire property in the UAE.

Last month, it was reported that Kanye West was in talks to buy real estate in Dubai, with one source citing that the lack of paparazzi represented a major appeal for the US musician. Other household names who already own property in the UAE include David and Victoria Beckham, Brad Pitt and Angelina Jolie, and Shah Rukh Khan.

This is hardly surprising. The UAE affords levels of privacy and security that many other international locations, such as Los Angeles and London, simply cannot deliver. To me, it makes perfect sense that high-profile individuals, who have grown used to being pursued by the media, would look to acquire luxury properties in the Emirates.

So, expect to see plenty more famous faces on the hunt for UAE real estate over the coming year.

Rising prices

When demand is high and supply is limited, prices will inevitably rise in any industry. The property sector is no exception.

In 2023, the UAE’s real estate market saw price increases across the board, and this trend is likely to continue during 2024. Dubai, for instance, is expected to register levels of growth similar to those witnessed last year due to strong demand from residents, investors and HNWIs.

Prime residential areas, such as Palm Jumeirah and Downtown, look set to continue to drive price growth. Meanwhile, our Emirate’s mainstream market (excluding prime neighbourhoods) is projected to register price growth of approximately 3.5% this year.

Whichever way you slice it, the prospect of UAE real estate becoming less expensive over the coming year looks extremely slim.

Sustainable living

COP28, which concluded in Expo City Dubai last month, highlighted the urgency of positive climate action. A broad range of industries are expected to go through a ‘green transition’ over the coming decade, and our nation’s property sector is likely to be among them.

As experts predict the proliferation of sustainable living initiatives, a shift towards a more eco-friendly real estate market seems inevitable, and will no doubt contribute significantly to the UAE’s efforts to achieve net zero by 2050. This trend is also in keeping with our nation’s commitment to green property development, which has garnered international attention and acclaim in recent years thanks to sustained investment from government leaders and forward-thinking developers like DAMAC Properties.

I expect demand for environmentally conscious residential and commercial properties to increase significantly throughout 2024 and beyond.

A shift towards homeownership

Thanks to these driving forces, the UAE’s property market looks set to experience continued growth over the coming 12 months. Demand is only likely to be compounded by our nation’s robust economic outlook, with this year’s GDP growth expected to double to 4.8%.

Amidst a thriving economy, I anticipate that larger numbers of people will look to escape rent increases by getting a foot on the local property ladder. Resident expats accounted for 40% of all real estate purchases in 2022, and industry analysts expect this proportion to reach 50% by next year. With this in mind, I am confident we’ll see higher volumes of people attempting to purchase property and put down roots in the UAE during the coming 12 months.

Whatever 2024 has in store for the Emirates’ real estate sector, I guarantee it will make for interesting reading. Our nation’s property market truly outdid itself in 2023, and I cannot wait to see what lies ahead.