The residential real estate market in the UAE continued to show strength in the third quarter of 2023, with increased transaction volumes and prices in Abu Dhabi and Dubai driven by higher buyer demand, according to a report from CBRE.
In Abu Dhabi, the total number of residential transactions in the three months ending in September increased by 84.3% compared to the previous year. This growth was fueled by a 101.6% surge in off-plan sales and a 46% rise in secondary or ready home sales. On the price front, average apartment prices in Abu Dhabi increased by 0.9% annually, while average villa prices experienced a marginal decrease of 0.1% during the same period.
The resurgence of the UAE’s property market can be attributed to government initiatives and overall economic growth driven by higher oil prices. Abu Dhabi, in particular, recorded significant real estate transactions worth Dh46.33 billion in the first half of 2023, a more than doubled value compared to the previous year, with transaction volume rising by 41% on an annual basis.
In terms of rental properties, average apartment and villa rents in Abu Dhabi each increased by 1.1% in the third quarter of 2023. Average apartment and villa annual rents stood at Dh66,823 and Dh161,683, respectively, according to CBRE.
In Dubai, residential prices surged by 19.6% annually during the same three-month period, with average apartment and villa prices increasing by 19.7% and 18.9%, respectively. The total volume of residential transactions in the first nine months of the year reached a record high.
Taimur Khan, Head of Research of Mena at CBRE in Dubai, stated, “Strong performance continues in the UAE’s residential market in the third quarter. The high level of activity and the limited upcoming supply in both Abu Dhabi and Dubai are likely to continue driving price growth in the future.”
On the supply side, Abu Dhabi saw the delivery of 2,262 units to customers from the beginning of the year up to the third quarter of 2023. Additionally, 3,521 units are expected to be completed by the end of the year. In Dubai, 27,095 residential units were estimated to have been delivered from January to the end of September, with 34,651 more units expected to be handed over by the end of the year, with a significant portion in specific areas.
Publish Date: October 26, 2023
Source: https://www.thenationalnews.com/business/property/2023/10/26/uae-residential-market-continued-to-perform-strongly-in-third-quarter/
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