According to a recent report on the real estate market in the third quarter (Q3) of 2023, Abu Dhabi’s residential sales market is expected to experience growth in the upcoming months. Meanwhile, Dubai’s real estate sector will continue to maintain momentum due to the introduction of new projects.
Asteco Property Management’s report attributes this growth to the increasing demand for housing units across various population segments. Additionally, the government’s proactive initiatives aimed at promoting the expansion of the real estate sector have provided significant support.
During Q3 2023, Abu Dhabi’s real estate market saw the completion of 1,000 housing units. These units are distributed across various residential complexes, with a particular focus on the Al Raha Beach area.
The report showed that Abu Dhabi witnessed a remarkable increase of over 100 percent in the number of transactions recorded during Q3 compared to the previous year.
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During the mentioned period, a series of notable projects were initiated, with several future projects encompassing residential, commercial, and multi-use real estate expected to be launched at the planning or design stage. These projects are anticipated to be formally announced within the next six months.
Apartment and villa rentals in the market saw respective annual growth rates of around 3 percent and 4 percent. However, average apartment rental prices experienced only slight growth during Q3.
In contrast, luxury and high-end real estate projects witnessed significant increases, ranging from 4 percent to 6 percent. These rates reached an annual increase of nearly 10 percent compared to the corresponding period last year.
Furthermore, the report highlighted a robust increase in demand for villas, particularly in newly developed complexes.
Notable surge
Office rental prices experienced a significant surge of 6 percent during the quarter, with a year-over-year increase of 10 percent. This rise can be attributed to the limited availability of premium office and administrative space in the market, driven by strong demand from expanding companies. Additionally, proactive government initiatives aimed at attracting foreign investment have contributed to this upward trend.
Anticipated annoucements
Several upcoming projects encompassing residential, commercial, and multi-use real estate are currently in the planning/design stage and are anticipated to be officially announced within the next six months.
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