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According to industry expert Property Finder, Abu Dhabi’s real estate market has experienced strong growth for the first three months, with sales transaction value increasing by three times to AED11.602 billion ($3.2 billion) from AED3.633 billion last year.
According to Property Finder’s most recent Market Watch Report for Q1 2023, Abu Dhabi’s off-plan market also kept up its positive momentum, recording 1,345 off-plan sales transactions in Q1 2023 as opposed to 713 transactions in Q1 2022, accounting for 66.4% of all transactions as opposed to 51.6% of all transactions in Q1 2022.
According to the report, the real estate industry is on the verge of revolution, driven by the development of stronger PropTech ecosystems. As a result, sales have increased noticeably with high-value transactions, better returns, and changing consumer preferences.
Key transaction patterns and insights for the quickly changing real estate markets in Abu Dhabi and Dubai have been documented by Property Finder in its findings.
The increase of greener options among potential investors and residents seeking for new homes, with Masdar City appearing as one of the most searched regions in Abu Dhabi, is a significant trend seen by industry professionals.
In Q1, the average price for a one-bedroom apartment in Masdar City was AED745,000; for a two-bedroom apartment, AED1.1 million; and for a three-bedroom apartment, AED1.8 million.
According to the report, Q1 2023 saw an outstanding record for Abu Dhabi’s total sales transaction value, which rose to AED 11.602 billion from AED 3.633 billion in Q1 2022.
Al Reem Island, Yas Island, Al Raha Beach, and Saadiyat Island were all among the top options for anyone looking to buy an apartment for investment or habitation in Q1 2023, according to Property Finder’s proprietary data.
The average asking price for apartments increased by 7% from Q1 2022 to Q1 2023, which is a significant rise. Studios, two-bedroom flats, and four-bedroom apartments were the main drivers of the upward trend.
On the other side, home purchasers’ top choices for reasonably priced luxury villas and townhouses were Yas Island, Saadiyat Island, Al Reef, Al Reem Island, and Khalifa City. Due to a spike in demand for two and three-bedroom villas, the average asking price for villas climbed by 7% from Q1 2022.
According to Property Finder, national objectives and foreign policies are still changing, which keeps Dubai at the top of its game in the real estate industry.
The city’s best-performing neighborhoods for owned villas in Q1 2023 were identified as Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills, and Mohamed Bin Rashed City, all of which were characterized by consistent development.
According to Property Finder, Q1 set a stunning milestone for a quarter over the previous ten years. The registered sales increased significantly by 52% YoY to 30,952 transactions from 20,352 transactions in Q1, establishing the highest performance for a quarter ever. The remarkable performance of the off-plan transactions was a major contributor to this performance.
By achieving 15,948 transactions in Q1 2023 compared to 8,467 in Q1 2022, off-plan sales in Dubai set a new record, it continued.
According to data from Property Finder, the average asking price for apartments increased by 25% between Q1 2022 and Q1 2023. Villas also experienced a huge uptick of 16% from Q1 2022.
In Q1 2023, the following apartment complexes continued to be popular alternatives for renters: Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Jumeirah Lake Towers.
Apartment rents in Dubai were shown to have drastically increased in Q1 2023 compared to Q1 2022. Although a higher ROI simultaneously met important areas for various types of units, rent rates rose on average by 18%.
According to a top official, consumer preferences in the two emirates have been observed to be fast changing in favor of larger spaces, ranging from two to three bedrooms to four to five bedrooms in flats and villas.
According to Scott Bond, UAE Country Manager at Property Finder, price rises were equally matched by surpluses in values and ROI, paving the way for a healthier real estate ecosystem and greater contributions to the country’s overall GDP.
“2022 ended on a good note with a heightened flow of foreign investment, and Q1 2023 ensured a sustained momentum – keeping up the trend. For those who are actively home searching, UAE’s real estate sector has much more to offer now than ever, with significant returns and wider options across some of the city’s top areas and future-ready communities,” he stated.
“As home search enablers, we look forward to more meaningful gains in the coming months, supported by a simultaneous growth in PropTech innovation to get people living the life they deserve,” he added.
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