UAE Real Estate Market in Q3: Dubai Achieves Best Quarter, Abu Dhabi Sees Sustained Demand

With exceptional progress throughout each the Emirates, actual property demonstrated substantial progress and spectacular spikes in demand for each off-plan and current properties

Revealing a sustained curiosity from property seekers and document transaction values for the third quarter throughout Dubai and Abu Dhabi, MENA’s main property portal, Property Finder introduced outcomes from its newest Market Watch report for Q3 2023. The demand for property was discovered to be a most popular funding with nice potential for long run worth because of rising traits which might be reshaping the narrative for actual property within the UAE.

Record highs mark a profitable quarter

According to Mo-asher Dubai’s official Sales Price and Rental Performance index launched by Dubai Land Department (DLD) in cooperation with Property Finder for Dubai, the general quarterly Index for gross sales in Q3 2023 recorded 1.554 and an Index value of AED 1,429,187. The flats quarterly gross sales Index recorded 1.676 and an Index value of AED 1,390,272, and the villas/townhouses quarterly gross sales Index recorded 1.443 and an Index value of AED 2,473,730. The Index confirmed progress in all classes. Year on Year (YoY), from Q3 2022 to Q3 2023, the general Index surged from 1.383 to 1.554, indicating a 12.4% enhance.

For leases, Q3 2023 recorded 1.08 and an Index value of AED 58,036, the flats quarterly rental Index recorded 1.104 and an Index value of AED 53,005, and the villas/townhouses quarterly rental Index recorded 0.969 and an Index value of AED 150,181. The general rental Index stood at 1.08, indicating an improved rental setting in comparison with earlier quarters.

Property Finder’s proprietary knowledge additional discovered that Dubai recorded 31,181 transactions in comparison with 25,400 in Q3 2022, marking a 22.76% YoY enhance within the efficiency of prepared and off-plan transactions, resulting in Dubai’s highest quarterly peak in a decade.

On the opposite hand, based on knowledge from the Department of Municipalities and Transport (DMT), Abu Dhabi skilled a big surge in complete gross sales transactions (each residential and business) throughout Q3 2023. The variety of residential transactions reached a document excessive for 1 / 4, with 3,718 transactions in comparison with 1,569 transactions in Q3 2022, reflecting a considerable enhance of 137% to signify round 92% of the whole transaction and 90% of the general worth.

Off-plan properties proceed to drive scope for long run progress

Both cities skilled a big enhance within the contribution of off-plan transactions in Q3 2023. Dubai’s off-plan properties made for 47.2% of the whole transactions in comparison with 46.5% in Q3 2022, with 14,714 transactions in Q3 2023 in comparison with 11,809 in Q3 2022 recording round a 24.6% enhance and the very best gross sales transaction quantity for Q3 in a decade. Sales worth for off-plan properties touched AED 35.71 billion transactions in Q3 2023, in comparison with AED 24.34 billion in Q3 2022, resulting in a 46.72% enhance and contributing to 36.6% of the whole transaction worth witnessing the very best worth recorded ever for Q3.

Showing comparable traits, Abu Dhabi recorded 2,954 off-plan gross sales transactions in comparison with 1,041 transactions in Q3 2022 to signify 79% of the whole transactions versus 66% of the whole transactions in Q3 2022, exhibiting a big YoY surge by 184% by way of quantity and 367% enhance for a similar interval by way of worth. The off-plan gross sales transaction worth in Q3 2023 contributed to 87% of the whole gross sales transactions worth in comparison with 64% in Q3 2022 by reaching AED 12,713 billion in comparison with AED 2.72 billion. While the off-plan market witnessed an 184% enhance in comparison with Q2 2023. With a powerful financial framework and elevated international confidence, Abu Dhabi’s actual property sector has been thriving with help from each the private and non-private sector.

Existing properties contribute to a continued constructive trajectory for the sector

A spike in off-plan might have resulted in new traits throughout the current property market however it continues to enhance general progress with increased values all through. It is noteworthy that tenants modified their habits, preferring to personal a house as a substitute of renting, pushed by the surge in common market worth for renting. In Dubai, current/prepared transactions in Q3 2023 offered 52.8% of the whole gross sales transactions in comparison with 53.5% in Q3 2022.

Making up for 52.8% of the whole transactions, current gross sales witnessed a brand new document with 16,467 transactions in comparison with 13,591 in Q3 2022, to be the very best efficiency for 1 / 4 ever recorded, with a YoY enhance of 21.2% and seven.24% spike when in comparison with Q2 2023. Also hitting a document excessive in values touching AED 61.8 billion compared to AED 45.03 billion in Q3 2022, marking a exceptional enhance of 37.3% to document the very best transaction worth ever recorded for 1 / 4, and an 11.2% enhance from Q2 2023.

For Abu Dhabi, current/prepared market gross sales registered 764 prepared properties in comparison with 528 in Q3 2022, to signify round 21% of the whole transactions in comparison with 34% in Q3 2022; marking a notable progress of 45% in comparison with Q3 2022. The current/prepared transaction worth in Q3 2023 contributed to 13% of the whole gross sales transactions worth in comparison with 36% in Q3 2022, by reaching AED 1,873 billion, whereas transaction values witnessed a notable enhance of 25% in comparison with AED 1,502 billion in Q3 2022.

More property seekers within the UAE

Dubai noticed important will increase in rental contracts with a YoY enhance of 11.2% by registering 156,422 contracts in comparison with 140,685 contracts in Q3 2022. New contracts mirrored a rise of two.63% by registering 84,766 contracts in comparison with 82,596 contracts in Q3 2022. Renewed contracts supported the rental market by registering 71,659 contracts to witness a rise of 23.36% in comparison with 58,089 contracts in Q3 2022, with a notable enhance by 17% in comparison with 61,219 registered contracts in Q2 2023. All in all, extra folks had been discovered to be on the lookout for a house within the metropolis, driving prospects for sustained momentum within the months to return.

Top areas to look out for

According to Property Finder’s proprietary knowledge, Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle emerged as prime selections for these seeking to personal an residence, whereas Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Al Furjan, and Damac Hills had been thought-about finest locations for villas.

Dubai Marina, Jumeirah Village Circle (JVC), Business Bay, Downtown Dubai, and Jumeirah Lake Towers (JLT) had been most popular for residence leases in Q3 2023. Dubai Hills Estate, Damac Hills 2, Al Barsha, Jumeirah, and Damac Hills had been the highest areas amongst renters looking for villas.

In Abu Dhabi, Al Reem Island, Yas Island, Al Raha Beach, Saadiyat Island and Masdar City remained a spotlight for individuals who need to personal an residence for funding or residence functions in Q3 2023. Al Raha Beach, Khalifa City, Corniche street, Al Khalidiya, Mohamed Bin Zayed City, Yas Island, Al Reef, and Saadiyat Island had been most popular selections for residence and villa leases. Despite the worldwide financial modifications, the luxurious actual property market in Saadiyat Island demonstrated spectacular sturdiness. Upscale properties persistently maintained their worth, exhibiting a constant fee of progress in the course of the preliminary half of 2023.

Speaking on the excellent progress made in Q3 2023, Cherif Sleiman, Chief Revenue Officer, Property Finder mentioned, “We closed Q3 with an increased uptake in off-plan properties, strong investor confidence and a rising demand for ownership. Q3 2023 has only taken that success a notch higher, revealing even more opportunities to grow in the months to come. In the coming months, we remain committed to monitoring all aspects of the market trends to enable better decisions for property seekers through data backed transparency and enhanced trust across our platform.”