Northern Emirate’s Tourism and Real Estate Boom: A New Era of Growth and Investment in the UAE
Record-breaking numbers were noted in 2023 for project launches, transaction volumes, and sales values of individual units. Two important emirates in the United Arab Emirates, Dubai and Abu Dhabi, have a modern, strong, and constantly developing tourist infrastructure to support that expansion. In fact, with 17.15 million foreign overnight visitors in 2023, Dubai saw its highest-ever number of tourist arrivals, well surpassing the previous record of 16.73 million in 2019. Abu Dhabi, meanwhile, set a goal of drawing in over 24 million tourists by 2023, up from its 18 million visitors in 2022.
Although Dubai and Abu Dhabi are the well-known hubs for tourism in the United Arab Emirates, the Northern Emirates, which include Ras Al Khaimah, Sharjah, Fujairah, Umm Al Quwain, and Ajman, are expected to be crucial to the nation’s efforts to collectively achieve its targeted tourism levels by the start of the next decade.
UAE’s northern utilities market is taken over by private companies
- The federal government is eager to demonstrate that it would support the project in the northern Emirates.
- North of the UAE is home to $32.8 billion in planned or ongoing transportation and building projects.
- Sharjah Emirate is thought to have the greatest potential for luring in private capital.
The northern emirates of the United Arab Emirates have consistently trailed behind Abu Dhabi and Dubai in terms of economic growth. According to US-based Standard & Poor’s estimations, GDP per capita was around $27,000 in Sharjah and between $17,500 and $24,500 in Ras al-Khaimah in 2014. This contrasts with the $103,000 GDP per person in Abu Dhabi in 2014.
However, federal investment has been concentrated in Sharjah, Ras al-Khaimah, Fujairah, Ajman, and Umm al-Quwain since the 2011 regional instability. In the northern emirates, there is now $32.8 billion worth of planned and ongoing transportation and construction projects, according to regional projects tracker MEED Projects.
Tours for publicity
The Ministry of Public Works (MOPW) of the UAE is eager to demonstrate that it lavishes funding and attention on the smaller, frequently overlooked emirates. To demonstrate that the authority does not ignore these isolated areas, it plans media bus trips to showcase its initiatives, which include developments on Oman’s borders and the well-kept road network across the steep terrain north of Dubai.
The minister of public works, Abdullah Belhaif al-Nuaimi, states that the UAE’s infrastructure is frequently competitive. However, developing and hilly areas still require infrastructure; they shouldn’t be cut off from communications, water, and power.
Important information
The northern emirates get over 70% of the infrastructure funding from the Ministry of Public Works. Although the northern emirates lack the skyscrapers of Dubai and the oil wealth of Abu Dhabi, the MOPW is nonetheless investing tens of billions of dirhams to link the cities and construct amenities for the local populace. The northern emirates get over 70% of MOPW’s infrastructure investment because Dubai and Abu Dhabi are already well-developed.
The authority’s transportation plan is centred on building a road network that links newly constructed ports—such as the oil storage facilities in Fujairah—to other transportation centres, like airports and large cities. While Sharjah and RAK became the UAE’s top destinations for real estate purchases, Ajman shines with record growth in sales and rentals.
Dubai, United Arab Emirates:
The leading property platform in the UAE, dubizzle, has released its much-awaited Annual Property Market Report for the Northern Emirates, which shows that the real estate markets in the region experienced notable growth in 2023, with Ajman, Sharjah, and Ras Al Khaimah (RAK) leading the way. A positive picture for investors and homebuyers alike has been shown in the reports provided for each emirate, which are based on primary data collected from site visits and user behaviour throughout 2023. These findings show an excellent increase in both the sales and rental sectors.
Rising Stars: Ajman, Sharjah, Ras Al Khaimah in UAE Property
“Our 2023 Annual Property Market Reports for Ajman, Sharjah, and Ras Al Khaimah showcase their emerging status as rising stars in the UAE property market,” stated Haider Khan, CEO of dubizzle, in response to the report’s results. Nearly all villa and apartment categories have seen steady growth, which is supported by the timely completion of off-plan projects and other developments as well as the availability of contemporary facilities at affordable prices. Over 25 million page views were generated by listings posted in Sharjah and the Northern Emirates in 2023, indicating the popularity of these listings among UAE property hunters. These emirates have emerged as top choices for individuals seeking more affordable options with comparable facilities and advantages, as demand for real estate and investment possibilities rises throughout the United Arab Emirates. With an impressive Return on Investment (ROI) of 9.44%, Ajman Downtown is undoubtedly the best place to buy apartments, and this is evident from its rising value and appeal in the real estate market. With 6.15%, Al Yasmeen is the most sought-after neighbourhood for villa purchases, while Al Zorah offers a noteworthy 6.99% return on investment.
Dubai’s New Reality: Investors Eye Long-Term Potential over Quick Flips
Apartment rentals range from AED 27,000 to AED 47,000 per year, and the rental market has seen a robust upward tendency. With an average yearly rent of AED 27,000, Al Nuaimiya is the market leader for apartment rentals. With an average sales price of AED 371,000, it is also a top location for apartment purchases. The neighbourhoods of Emirates City, Al Sawan, and Al Amerah have lucrative prospects and are considered to be attractive regions for investments.
Conclusion
The research predicts that the consistent, positive trajectory seen over 2023 will continue into 2024. Throughout 2023, the Northern Emirates market showed significant indications of development and recovery, with sales prices and rental rates consistently trending upward. Although overall rental rises in the market were not very substantial, there were noticeable increases in the high-end segments of Sharjah and Ras Al Khaimah (RAK), with prices picking up speed as the year came to a finish. There was an increase in average apartment rates across the Northern Emirates.
