Property Finder has released its annual Market Watch Report for 2023. It revealed impressive milestones for the property sector in Dubai and Abu Dhabi. Notably, it noted a surge in off-plan sales and record-breaking transactions, marking a pivotal year for the real estate industry in both emirates.
Increased transactions
Recent data from the Dubai Statistics Center indicates robust growth in Dubai’s real estate and construction sectors, contributing to nearly 14.4 percent of the emirate’s total gross domestic product (GDP). In 2023, sales transactions reached AED411.74 billion, a remarkable 56 percent rise compared to 2022. Moreover, it recorded around 133,000 registered real estate sales transactions, marking an impressive 38 percent growth.
Meanwhile, the Department of Municipalities and Transport reported record-high real estate transactions in Abu Dhabi, reaching 13,298. This reflects a 75 percent increase compared to 2022. Moreover, residential real estate transactions accounted for 97 percent of the entire volume, totaling AED44 billion. This marks a notable 120 percent rise compared to the previous year.
Boost in off-plan investments
Off-plan sales in Dubai set a record, surging to 68,783 transactions, a 59.4 percent increase from 2022. Moreover, 70 percent of real estate transactions concentrated in the top 10 areas, with the leading area contributing 14.4 percent.
On the other hand, Abu Dhabi recorded 10,151 off-plan sales transactions, a 99 percent year-on-year surge in volume, and a 174 percent increase in value, reaching AED 35,570 billion.
Ready and existing properties
Existing real estate sales in Dubai reached 64,351 transactions, the highest annual performance on record, with a notable year-on-year increase of 20.72 percent. Existing and ready transactions constituted 51.2 percent of the total transactions. Meanwhile, Abu Dhabi witnessed 3,147 transactions for ready properties, representing a 26 percent growth from 2022. In addition, ready and existing properties in Abu Dhabi represented around 24 percent of the total transactions.
Preferred neighborhoods
In Dubai, some of the most sought-after areas for buying or renting apartments were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, and Business Bay. Jumeirah Lakes Towers (JLT) and Palm Jumeirah also emerged as top choices for owning or renting an apartment. In Abu Dhabi, Al Reem Island, Yas Island, Al Raha Beach, Khalifa City, Corniche Road, Saadiyat Island, and Masdar City remained the top choices for owning or renting an apartment or for investment or residence purposes in 2023.
When it comes to villa ownership and rentals in Dubai, Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills, and Mohammed Bin Rashed emerged as top choices. Al Barsha, Jumeirah, and Damac Hills 2 were also preferred areas for buying or renting villas. Meanwhile, for affordable and luxurious villas or townhouses in Abu Dhabi, home buyers and tenants deviated towards Yas Island, Saadiyat Island, Al Reef, Al Reem Island, and Khalifa City the most.
Read: Arada expands into Dubai acquiring AED600 million land in Zabeel
A year of sustained progress
Reflecting on the real estate sector’s sustained progress, Cherif Sleiman, chief revenue officer, Property Finder said, “2023 has been no less than exceptional for our sector. We saw new trends emerge, diversified consumer segments, increased scope for businesses in real estate, and a strong demand met by supply that is multifaceted and future equipped.”
Sleiman also shed light on the importance of technology and innovation in facilitating the process of searching for properties. He underscored Property Finders’ commitment to enhancing and empowering property seekers with all the information they need to make informed decisions.
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