Asteco Property Management is proud to announce its recent accolade as the ‘Property Management Company of the Year’ at the prestigious Facilities Management Middle East (FMME) Awards 2024 held in Dubai. This recognition highlights Asteco's commitment to transparency, innovative strategies, human expertise and the adoption of advanced technology while prioritising sustainability and reducing the environmental impact of its expanding portfolio. Asteco's achievements in 2023 were remarkable, with an overall occupancy rate of 90% and a 36% increase in rental collections managed on behalf of clients. The company's portfolio also grew by 15%, reflecting its market presence and operational excellence. Asteco's dedication to environmental responsibility was showcased through various CSR activities, such as beach clean-ups, mangrove planting, reducing single-use plastics and upgrading waste management systems. Technological advancements, including the Direct Debit Payment System and a new tenant portal, facilitated paperless communication, significantly cutting down on paper usage.

Dubai’s real estate market has always been a magnet for investors and homebuyers worldwide, known for its rapid growth, architectural marvels and luxurious lifestyle offerings. As we navigate through 2024, the market continues to evolve, shaped by a mix of supply chain challenges, rising rental rates and steady sales prices. With Q2 behind us, the question on everyone’s mind is: What will the future hold for Dubai’s real estate market in 2024 hold?

In this post, we explore the current trends and factors influencing Dubai’s property market, offering insights into what to expect as the year unfolds.

Supply: A Slower Yet Steady Expansion

Dubai’s real estate supply growth took a more measured pace in Q2 2024, with approximately 6,750 new residential units delivered—significantly fewer than in Q1. While developers remain committed to meeting demand, ongoing supply chain disruptions often hinder their progress by affecting materials and labour. However, some developers have managed to stay on track, leveraging well-established supply chains and efficient project management strategies.

Despite these challenges, new project launches have not slowed down. From skyscrapers to master-planned communities, Dubai’s skyline continues to expand. Significant developments like Emaar’s Heights Country Club and Wellness community signal the city’s ongoing commitment to creating spaces that promote well-being and luxury living. As Dubai aligns with its ambitious 2040 Urban Master Plan, the market is expected to see a continued influx of new properties, though some may face delays.

 What’s Next?

The second half of 2024 is anticipated to bring an additional 25,000 residential units to the market, although some projects might roll over into 2025. This growing supply will likely balance the market, providing more options for buyers and renters while possibly stabilising price increases.

Rental Rates: Moderation Amid Growth

Rental rates in Dubai have shown moderate increases across both apartments and villas in Q2 2024, with apartments rising by 3% and villas by 2% compared to Q1. This trend is primarily driven by the updated RERA rental index, which has allowed landlords to impose higher rent increases upon lease renewals.

However, the pace of annual rental growth has slowed to single digits—8% for apartments and 4% for villas. Luxury and niche developments aside, the upper end of the market experienced a slowdown in rental growth. In contrast, affordability is driving significant rental increases in mid-tier and budget-friendly communities like Emaar South and Damac Hills 2. These areas are attracting tenants with competitive rents, enhanced infrastructure and the flexibility offered by hybrid work arrangements.

What’s Next?

As living costs continue to rise, rental growth is expected to moderate further. However, demand for affordable housing will likely keep driving up rents in lower and mid-end markets in the short-term, making these areas increasingly attractive for both tenants and investors.

Sales Prices: Steady Gains with Strategic Hotspots

Dubai’s sales market remains robust, with Q2 2024 seeing a 2% increase in average sales prices. Certain areas, such as Jumeirah Village and Business Bay, have outpaced this average, reflecting the city’s growing appeal to both local and international buyers. In addition to the general increase in demand, this can be attributed in part to a significant rise in both off-plan launches and newly completed developments. These new projects often feature superior quality compared to earlier ones in these areas and are priced accordingly.

The off-plan market, in particular, continues to thrive, buoyed by new project launches and enhanced financing options. Developers are enticing buyers with flexible payment plans and lower down payments, while lenders are offering additional financing during construction phases. This accessibility is broadening the market’s appeal, making off-plan properties a hot commodity for investors looking for high returns in a tax-friendly environment.

What’s Next?

With new high-quality developments coming, sales prices in strategically located areas are expected to continue their upward trend. The off-plan market will likely maintain its momentum, driven by investor confidence and favourable financing conditions.

As we look ahead to the remainder of 2024, Dubai’s real estate market presents a mixed but optimistic picture. While supply chain challenges and rising costs pose potential headwinds, the market’s resilience is evident in its steady growth and the continued appeal of its diverse property offerings.

So, what does the future hold?

Expect a balanced market with ongoing opportunities for buyers, renters and investors—especially those who stay informed and adaptable to the changing landscape.

For those looking to dive deeper into these trends and understand the detailed numbers, the Q2 2024 Dubai Real Estate Market Report offers a comprehensive analysis that can help you make informed decisions.

Asteco, a leading real estate services company, has won the "Property Management Company of the Year" award at the World Realty Congress Awards 2024, held recently in Dubai. The award recognised Asteco's exceptional performance, innovative strategies and firm commitment to client satisfaction within the property management sector. Randy Fink, CEO at Asteco, said, “Being recognised by the World Realty Congress is a true honour. This award reflects Asteco's four-decade legacy of building lasting relationships with clients, some of whom have been with us since our inception. Throughout our journey, we’ve focused on exceeding client expectations and delivering reliable, high-quality, value-added services. This approach has set new benchmarks in property management, establishing us as a trusted leader in the real estate sector.” Asteco strengthens its position as a market leader by utilising advanced technology to drive operational efficiency, enhance stakeholder experiences and support the company's continued growth and market presence. Asteco also won the silver award in the “Real Estate Consultancy Company of the Year” category, in recognition of its Valuation and Advisory department's exceptional expertise, data-driven insights and strategic guidance provided to clients across the UAE. Most recently, Asteco was also honoured with the silver award in the “Property Management Company of the Year” category at the Smart Built Environment Awards 2024, recognising the company's dedication to ensuring that all client requirements are not only met but exceeded. The World Realty Congress Awards are a leading industry platform recognising excellence and innovation in the real estate sector. The awards celebrate outstanding achievements across various areas, honouring companies that demonstrate leadership, best practices and a commitment to shaping the future of real estate. The annual awards ceremony brings together key players and thought leaders from the global real estate community.

Asteco Property Management has been awarded the esteemed title of “Property Consultancy Company of the Year” at the Smart Built Environment Awards 2024, held recently in Dubai. This recognition underscores Asteco's commitment to not only meeting but exceeding client expectations, providing comprehensive and strategic advice that empowers clients to make informed decisions for their success. The award highlights Asteco's role as a benchmark for service excellence in the real estate sector. In addition to this honor, Asteco also received a silver award in the “Property Management Company of the Year” category, reflecting its innovative strategies, adoption of advanced technologies and commitment to sustainability. Over the past year, Asteco has established itself as a leading integrated property services company, achieving an impressive occupancy rate exceeding 90% and managing a rental portfolio valued at over 1.3 billion dirhams. The company’s Valuation Reports, trusted by top UAE lenders, contributed to the valuation of the world’s largest private education portfolio, showcasing Asteco's dedication to excellence and innovation in the real estate landscape.

Asteco Property Management, a leading real estate services company, has won the ‘Best Real Estate Agency of the Year’ title at the International Real Estate Community Management Summit (IRECMS) Dubai Awards 2022 that took place recently in Dubai. Asteco was recognised for offering reliable and trusted professional expertise and delivering unmatched customer experience, all while demonstrating high repeat and referral business.

HP Aengaar, CEO at Asteco, said, “For the past thirty-seven years, Asteco has been offering high quality, professional and value-added real estate services, building a significant portfolio of properties under its management. This new recognition is yet another testament to our commitment and dedication to the prosperity of our landlords and owners - and the country as a whole - adapting to their needs and adjusting to changing market conditions and technological advancements in the best interest of our clients.”

He added, “We will continue to develop effective new approaches and utilise technology and innovation to provide unparalleled real estate services that bring together our deeply rooted local knowledge and unique international expertise.”

The IRECMS Dubai Awards is an initiative to recognise UAE-based organisations who are generating exceptional results in the fields of Community Management, Facilities Management, Property Management, and Real Estate in general. This year's awards featured over 20 award categories, which were evaluated by an Advisory Council comprised of global industry leaders.

The recognition of Asteco at the IRECMS Dubai Awards follows a series of other successes at the prestigious International Property Awards 2022, where the company was named the ‘Property Agency/ Consultancy of the Year’, and at the Smart Built Environment Awards 2022, where it was awarded the ‘Property Consultancy Team of the Year’ award. 

Launched in 1985, Asteco is an award-winning full-service real estate services company that delivers high quality, professional, value-added real estate services in a transparent manner. The company offers a distinguished and important combination of local knowledge and international expertise and is well-known for its use of cutting-edge technological tools and innovations, its commitment to transparency, winning strategies, and human expertise. Asteco is also widely recognised for its involvement with many of the projects that have defined the landscape and physical infrastructure of the United Arab Emirates.

Leading real estate services company, Asteco Property Management, has won the Property Agency/ Consultancy of the year award for its Dubai and Abu Dhabi operations. The award was made at the prestigious International Property Awards 2022, recently held in Dubai. Asteco was recognised for providing exceptional real estate advice and services in a transparent manner and delivering valuable strategic real estate consultancy advice for its clients. HP Aengaar, CEO at Asteco, said, “Asteco's team has consistently strived to provide clients with unparalleled real estate services that combine local knowledge and international expertise. The award for Property Agency/Consultancy of the Year validates Asteco’s dedication and extensive experience in assisting clients at all stages of a built asset's lifecycle, as well as in providing high-quality, innovative technical services tailored to their specific needs.” John Allen, Executive Director - Valuation & Advisory at Asteco, said, “It is a great honour for us to be recognised at the International Property Awards 2022. Our commitment to providing unique, valuable information and exposure to business opportunities has enabled our clients to succeed. We are constantly implementing effective new marketing methods and utilising innovation to continue providing the best results to our clients.” This recognition of Asteco at the International Property Awards 2022 falls closely on the heels of their success at the Smart Built Environment Awards 2022, were they similarly awarded Property Consultancy Team of the Year. Founded in 1993, the International Property Awards celebrate the highest levels of achievement by companies operating in all sectors of the property and real estate industry. Award entries are judged by an independent panel of over ninety industry experts and focuses on design, quality, service, innovation, originality, and commitment to sustainability of the project. The awards are split into different regions covering Africa, Asia, the Pacific, Middle East, Canada, the Caribbean, Central, and South America, Europe, the UK, and the USA. Launched in 1985, Asteco is an award-winning full-service real estate services company that delivers high quality, professional, value-added real estate services in a transparent manner. The company offers a distinguished and important combination of local knowledge and international expertise and is well-known for its use of cutting-edge technological tools and innovations, its commitment to transparency, winning strategies, and human expertise. Asteco is also widely recognised for its involvement with many of the projects that have defined the landscape and physical infrastructure of the United Arab Emirates.