Real Estate Market Watch 2023: Record Breaking Growth in Dubai, Abu Dhabi

Increased transactions, better returns, spike in possession, off-plan investments, new tasks on the rise; 2023 wraps up with large wins for Dubai and Abu Dhabi’s property sector

Property Finder, the main property portal within the MENA area, has reported substantial progress in Dubai and Abu Dhabi’s actual property sectors for 2023. Significant achievements in 2023 embrace Abu Dhabi’s off-plan gross sales witnessing a considerable improve, capturing a bigger share of whole transactions in comparison with the earlier yr, whereas Dubai’s off-plan market set a noteworthy report with a outstanding surge, signifying the highest-ever annual efficiency for 2023.  Some extra prime wins considerably contributing to profitable yr included:

Increased transactions, stronger international confidence:

Dubai:

• Recent information from the Dubai Statistics Center experiences Dubai’s actual property and building sectors noticed a respective 3.6% and 1.9% development within the first half of 2023, contributing to almost 14.4% of town’s whole GDP for the yr.
• In 2023, gross sales transactions set a brand new annual report with a worth of AED 411.74 billion, marking a 56% improve from 2022. The sturdy financial development and flourishing tourism trade contributed to heightened housing demand.
• Registered gross sales transactions in 2023 surged to 133,134, marking a major uptick from the 96,459 transactions recorded in 2022—a powerful improve of 38%. This achievement represents the very best efficiency for the yr on report, establishing a brand new benchmark for unparalleled industrial development.

Abu Dhabi:

• According to information from the Department of Municipalities and Transport (DMT), the variety of transactions for a yr in Abu Dhabi achieved report highs with 13,298 transactions in comparison with 7,957 in 2022, reflecting a considerable improve of 75%.
• Residential transactions accounted for 97% of the entire quantity and roughly 85% of the general worth.
• Transaction values amounted to AED 44 billion, marking a outstanding 120% improve from AED 19.9 billion within the earlier yr.

Boost in off-plan investments, rising areas in demand:

Dubai:

• In Dubai, off-plan gross sales set a outstanding report in 2023, surging to 68,783 transactions from 43,151 in 2022, marking a powerful 59.4% improve and establishing the highest-ever annual efficiency for the off-plan market.
• 70.4% of off-plan transactions in Dubai concentrated within the prime 10 areas, with the main space contributing 14.4%, the second at 11%, and the third at over 7.8%.

Abu Dhabi:

• In Abu Dhabi, 10,151 off-plan gross sales transactions have been recorded, in comparison with 5,095 in 2022, representing 76% of the entire transactions, versus 67% in 2022.
• A major year-on-year surge by 99% when it comes to quantity and 174% improve for a similar interval when it comes to worth was recorded for Abu Dhabi.
• The off-plan gross sales transaction worth in Abu Dhabi reached AED 35,570 billion in comparison with AED 12,989 billion.

Ready/current properties, regular returns:

Dubai:

• Existing gross sales achieved a milestone in Dubai in 2023, surging to 64,351 transactions from 53,308 in 2022, marking the very best annual efficiency on report with a outstanding year-on-year improve of 20.72%.
• Across 178 areas in 2023, current/prepared transactions have been distributed, constituting 51.2% of the entire transactions, showcasing the widespread engagement and sturdy efficiency of this phase in the actual property market.

Abu Dhabi:

• 3,147 transactions for prepared properties in Abu Dhabi in comparison with 2,507 in 2022, representing round 24% of the entire transactions vs 33% in 2022; witnessing a notable development of 26% from 2022.

Loyalty spikes for most popular neighborhoods, extra listings for property seekers:

Dubai:

• Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, Jumeirah Lakes Towers (JLT) and Palm Jumeirah emerged prime selections for individuals who wish to personal/hire an house.
• Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills, Mohammed Bin Rashed, Al Barsha, Jumeirah and Damac Hills 2 have been most popular areas for villa possession and leases.

Abu Dhabi:

• Al Reem Island, Yas Island, Al Raha Beach, Khalifa City, Corniche Road, Saadiyat Island and Masdar City remained most popular selections for individuals who wish to personal or hire an house in Abu Dhabi for funding or residence functions in 2023.         
• As for inexpensive and splendid villas or townhouses, dwelling patrons’ and tenants’ prime picks for 2023 have been Yas Island, Saadiyat Island, Al Reef, Al Reem Island and Khalifa City.

Reflecting on a yr of sustained progress, Cherif Sleiman, Chief Revenue Officer, Property Finder mentioned, “2023 has been no less than exceptional for our sector. We saw new trends emerge, diversified consumer segments, increased scope for businesses in real estate and a strong demand met by supply that is multifaceted and future equipped. Not just that, technology and innovation in search channels enabled property seekers to belong better within their areas of choice, for some – even before they arrived in the nation. Ready to host many more searches in 2024, at Property Finder, we remain committed to enhancing and empowering property seekers with all the information they need to make informed decisions and get people living the life they deserve. We look forward to enabling many more possibilities through proptech in 2024.”