The UAE real estate market has witnessed an extraordinary surge in the third quarter of 2023, with Dubai leading the charge and Abu Dhabi following suit. Property Finder’s latest Market Watch report for Q3 2023 has unveiled record-breaking statistics, showcasing an increased appetite for both off-plan and existing properties. In this comprehensive blog post, we will delve into the key findings, emerging trends, and explore the factors contributing to the success of the real estate market in the UAE.
Dubai’s Soaring Success:
1. Record-Breaking Transactions: Dubai has experienced a historic quarter, with 31,181 transactions recorded in Q3 2023 – a remarkable 22.76% YoY increase. This surge in both ready and off-plan transactions marks Dubai’s highest quarterly peak in a decade.
2. Off-Plan Triumph: Off-plan properties played a pivotal role, constituting 47.2% of total transactions. With 14,714 transactions, there was a significant 24.6% increase compared to Q3 2022. The sales value for off-plan properties reached an unprecedented AED 35.71 billion, contributing to 36.6% of the total transaction value.
3. Existing Properties Hold Ground: While off-plan transactions soared, existing properties continued to contribute significantly. Existing/ready transactions constituted 52.8% of total sales, recording 16,467 transactions – the highest ever for a quarter. Transaction values reached AED 61.8 billion, marking a substantial 37.3% increase from Q3 2022.
4. Rental Market Surge: Dubai witnessed a notable 11.2% YoY increase in rental contracts, with 156,422 contracts registered in Q3 2023. The city is attracting more residents, leading to sustained momentum in the rental market.
Abu Dhabi’s Resilience:
1. Surge in Transactions: Abu Dhabi experienced a surge in total sales transactions during Q3 2023, with 3,718 transactions – a 137% increase compared to Q3 2022. Residential transactions accounted for 92% of the total transactions and 90% of the overall value.
2. Off-Plan Dominance: Similar to Dubai, off-plan properties in Abu Dhabi witnessed a substantial increase, constituting 79% of total transactions. The off-plan sales transaction value in Q3 2023 contributed to 87% of the total sales transactions value.
3. Existing/Ready Market Growth: Existing/ready market sales in Abu Dhabi registered a notable growth of 45%, reaching 764 ready properties. Despite off-plan dominance, existing properties remain a crucial component of Abu Dhabi’s real estate landscape.
Top Areas of Interest:
1. Dubai’s Hotspots: Property Finder’s data highlighted key areas in Dubai for property seekers. Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle emerged as top choices for apartments. Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Al Furjan, and Damac Hills were preferred for villas.
2. Abu Dhabi’s Focal Points: In Abu Dhabi, Al Reem Island, Yas Island, Al Raha Beach, Saadiyat Island, and Masdar City remained focal points for those seeking apartments. Al Raha Beach, Khalifa City, Corniche road, Al Khalidiya, Mohamed Bin Zayed City, Yas Island, Al Reef, and Saadiyat Island were preferred choices for both apartments and villas.
Future Trends and Outlook:
As the real estate market in the UAE continues its upward trajectory, it’s crucial to keep an eye on emerging trends. The sustained interest in off-plan properties, coupled with a surge in existing property transactions, indicates a robust and resilient market. Additionally, the increasing demand for rental properties signifies a growing population and sustained economic confidence.
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