Revealed: Abu Dhabi, RAK to vie with Dubai as top UAE real estate investment destinations in 2024

A new market research projected return on investments of up to 50% for some of the projects in Abu Dhabi’s upcoming and popular islands over the next three years, turning them among the most sought after residential real estate markets in the coming year

Capital city Abu Dhabi and emerging tourist and gaming spot Ras Al Khaimah (RAK) are predicted to be the top destinations for real estate investments in the UAE in 2024, along with the ever resilient Dubai, promising substantial growth in the coming year, new market research revealed.

Yas Island, Al Reem Island, and Saadiyat Island are projected to emerge as the top three locations by transaction value in Abu Dhabi, while the areas surrounding UAE’s upcoming first-ever casino in RAK are anticipated to clock the highest return on investments for investors next year, the AI-based study by Dubai-based global proptech Realiste said.

“Amidst the ever-shifting landscape of real estate opportunities, three emirates – Abu Dhabi, Ras Al Khaimah and Dubai – will emerge as magnetic hubs for investors in 2024,” the study predicted.

“Each emirate boasts unique strengths and opportunities for investors looking to capitalise on the region’s dynamic growth.”

The Realiste research showed that at $2,365 per sqm, the average cost per square meter property prices in Ras Al Khaimah is significantly lower among other cities with casinos, compared to a staggering $49,911 in Monaco and $15,153 in Singapore, underscoring the substantial potential for property value appreciation in the emirate, highlighting its attractiveness to potential investors.

It also projected a robust return on investments of up to 50 percent for some of the projects in Abu Dhabi’s upcoming and popular islands over the next three years, turning them among the most sought after residential property markets in 2024.

Real estate market boom to spread beyond Dubai in 2024

Abu Dhabi, and Ras Al Khaimah, along with Dubai, beckons as distinct gems for investors in 2024, Realiste said.

Abu Dhabi, epitomizing stability, offers steady organic growth and proven profitability in prime locations, while Ras Al Khaimah, propelled by a groundbreaking casino, stands out with affordable prices and a burgeoning tourism scene.

Meanwhile, Dubai will continue to lead the bull run in the UAE’s real estate market with its innovation and resilience promising substantial growth, with iconic projects showcasing sustainability, the study said.

“Together, these emirates encapsulate an opportunity, where each investment choice signifies a strategic move in the evolving landscape of Middle Eastern real estate,” Realiste said.

Investors could expect over 50% returns in short spans

Abu Dhabi, with its fast diversification with the mix of cultural and entertaining objects, besides hosting more than 100 global events, concerts or festivals annually, is projected to offer both top notch return on investments and high rental yields, luring real estate investors from around the world in the coming year.

The capital city’s high target for international tourist arrivals – its reported target for 2023 is 24 million visitors – will be a growth driver for short-term rental property also, the study said.

Q Property’s upscale projects  Maskan and Makany on Reem Hills and Aldar’s Gardenia on Yas Island are among the residential projects which are projected to fetch over 50 percent return, while 9 Yards’ Sea La Vie on Yas Island is estimated to see over 30 percent investment appreciation to investors in just a three-year span.

The Gardenia and Sea La Vie projects are also projected to get over 10 percent rental yields to investors.

UAE real estate investment destinations in 2024
Aldar Properties’ Gardenia Bay, a residential community inspired by nature and waterfront living in Yas Island

“[The Abu Dhabi real estate market] exhibits solid organic growth with lower speculative demand, reducing the risk of sharp declines in property values, making it a highly attractive investment destination,” said Realiste, which operates in over 100 cities around the world.

As for RAK, the Realiste study said the emirate’s real estate prices have seen considerable surge in recent months, following the announcement on the casino opening and riding on the boom in tourist arrivals, leading to an estimated over 25 percent spike in hotel room occupancy growth in 2023.

“The announcement of the first casino in the UAE has propelled Ras Al Khaimah into the spotlight, attracting substantial foreign investments and driving tourism,” the study said, adding that this could propel real estate prices, especially in areas around the casino, in the coming months and years.

Bloomberg estimates potential annual gaming revenue of $6.6 billion in RAK, surpassing even Singapore.

The Realiste research said the total transaction value in RAK’s real estate market continues its upward trajectory, nearly reaching the cumulative value of the entire previous year in the first eight months of 2023.

Dubai will continue to offer high returns to investors

The Realiste AI-based study also predicted continued high price growth in key Dubai areas such as Dubai Hills, Sobha Hartland, and Bluewaters Island, with a projected growth forecast ranging from 18.5 percent to 22.1 percent within one year.

“Dubai’s commitment to cutting-edge urban planning sets it apart. The emirate still represents the most significant earning potential for investors,” Alex Galt, CEO and founder of Realiste, told Arabian Business.

“For example, iconic projects such as the Dubai Hills development showcase a harmonious blend of sustainability, and innovation. In 3 years, property prices in the area have grown by an impressive 83 percent, and in the next 5 years, we forecast a further 43 percent growth, making it an attractive prospect for investors seeking long-term appreciation,” Galt said.

This Article is originally published on: https://www.arabianbusiness.com/

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