Robust Growth in UAE Real Estate Market with Noteworthy Projects Launched in Abu Dhabi and New Stock Added in Dubai
Description: The Dubai and Abu Dhabi real estate markets continue to show strong growth in Q1 2023, with the rental and sales rates increasing, according to the Asteco Q1 2023 report. The positive market outlook can be attributed to the influence of new government programs and wider economic growth.
Abu Dhabi Real Estate Market:
Several noteworthy projects were launched in Abu Dhabi, including the premium waterfront development, Sea La Vie – Yas Island by Nine Yards and Amara (Phase 2 of Reem Hills) by Q Holding. Aldar also launched several projects, maintaining its dominant market share with the release of The Sustainable City – Yas Island, Manarat Living on Saadiyat Island, Saadiyat Lagoons Wilds, Al Qurm Phase 2, and Yas Golf Collection.
Approximately 1,600 residential units were delivered in Q1 2023, with the apartment rental rates remaining stable. However, prime and high-quality apartment developments saw a 2% average rental increase. The villa rental market continued its upward trajectory, with an average quarterly increase of 2%, and prime villa communities saw the largest increases of up to 5%. There is also strong demand for office space, particularly for Grade A/B+ in prime locations. The sales prices for completed residential apartment and villa developments were flat in Q1 but registered an average increase of 2.0% over the past 12 months.
Dubai Real Estate Market:
New stock is being added across Dubai, with deliveries in established communities such as Dubai Marina and Business Bay, as well as in upcoming developments, including Port De La Mer, MBR City, Dubai Hills Estate, Dubai Creek Harbour, and Arabian Ranches.
Approximately 7,600 units were delivered in Q1 2023, with villa supply picking up significantly. However, project handover delays are likely to limit full-year apartment and villa completions. The appetite for new project launches continues to be well-received by investors and end-users, with villas continuing to be the predominant focus of demand, exhibiting higher rental and occupancy rates. There is strong rental growth in higher-quality developments, with quarterly increases of 4% for apartments and 7% for villas. Annual rental growth in the villa segment was significant, at 25%. Additionally, the office rental rates grew on average by 6% over the last three months.
In conclusion, the Dubai and Abu Dhabi real estate markets continue to show robust growth in Q1 2023. Investors and end-users can look forward to more noteworthy projects in Abu Dhabi and new stock being added in Dubai, making them both attractive destinations for real estate investment.
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