The Central Bank of the UAE (CBUAE) issued its economic report for the third quarter of 2023. The report showed strong performing sectors in the UAE, including real estate, tourism, and aviation.
Real estate sector
CBUAE’s report revealed that the real estate sector in the UAE maintained its good performance from July to October, despite the continued global uncertainty.
CBUAE explained that the value of residential transactions in Abu Dhabi increased by 56 percent annually reaching AED67.8 billion during the first nine months of 2023. According to Ryden, the average residential real estate sales prices in Abu Dhabi recorded an increase of 3.2 percent in the third quarter of 2023 compared to the same period last year.
Moreover, CBUAE’s report indicated that sales price growth in Abu Dhabi accelerated during October to 3.9 percent annually. Additionally, average rent continued its upward trend, recording an increase of 0.8 percent in the third quarter and 2.6 percent annually last October. That is following an increase of 0.5 percent annually in the second quarter of 2023.
According to the Dubai Land Department, the value of real estate transactions during the first ten months of 2023 increased by 37 percent on an annual basis, exceeding AED500 billion. Additionally, the number of real estate transactions in the first three quarters increased by 36 percent annually, exceeding 116 thousand transactions.
Furthermore, the number of new investors in the Dubai real estate market grew by 15 percent annually during the first three quarters of 2023 compared to 2022. Meanwhile, the average selling prices of residential real estate in Dubai also increased by 0.3 percent annually in the same quarter.
Tourism and hospitality
CBUAE’s report highlighted the hospitality sector’s strong performance in Abu Dhabi during the first eight months of 2023. The total number of hotel guests reached 3.2 million people, an increase of 31 percent compared to the previous year. Moreover, hotel occupancy rates reached 70 percent, and the average stay reached 2.6 nights.
Notably, CBUAE’s third quarter report stated that Dubai remains a prominent global tourism hub. Dubai’s hotel occupancy rate rose to 75.7 percent, achieving an increase of 4.9 percent compared to the same quarter in 2022. In addition, hotel occupancy exceeded 2019 numbers by 2.3 percent. Moreover, the total number of occupied nights saw a year-on-year increase of 13 percent in 2023 reaching 30.4 million nights.
The CBUAE report also stated that Abu Dhabi International Airport recorded significant growth in passenger traffic. The number of passengers reached approximately 6 million in the third quarter of this year, an increase of 29.3 percent year-on-year. Moreover, the airport recorded 37.9 thousand flights in the third quarter of this year, achieving a 21.8 percent increase compared to the third quarter of 2022.
The report by CBUAE indicated that Abu Dhabi’s aviation sector has expanded significantly on a global level. With its new terminal, it is now possible to reach 119 destinations through 24 airlines from the airport. The report stated that during the third quarter, the most frequent flights were to London, Mumbai, and Kochi.
CBUAE also noted that Dubai Airports has updated its forecasts for 2023. The number of passengers is expected to reach 86.8 million, compared to the previously expected 85 million. This adjustment indicates that Dubai International Airport is on track to exceed pre-pandemic passenger traffic, which amounted to 86.3 million passengers in 2019.
Moreover, the report stated that during the first three quarters of 2023, Dubai International Airport received 64.5 million passengers, Meanwhile, it recorded 22.9 million passengers in the third quarter, coinciding with increased travel during the peak summer season. This represents an increase of 39.3 percent compared to the same period in 2022 and is 1 percent higher than in 2019.
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