Asteco's Q3 2023 Real Estate Report highlights market dynamics and new project launches in the UAE.

The third quarter 2023 real estate report from Asteco, a leading real estate company in the UAE, highlights that Abu Dhabi's residential real estate market is gearing up for anticipated growth in the coming months, while real estate in Dubai continues to grow thanks to a steady stream of new projects. This growth is attributed to the increasing demand for housing among various segments of the population and the government's proactive initiatives aimed at developing the real estate sector.

Abu Dhabi

According to the report, the Abu Dhabi real estate market delivered 1,000 residential units in the third quarter of 2023, spread across different communes, with a major concentration in Al Raha Beach. During the period, launches''key projects such as Gardenia Bay on Yas Island, Vista 3 on Al Reem Island, Perla 3 in Yas Bay, Al Jurf Phase 2 in Gantut area, Murjan Saadiyat on Saadiyat Island, Icon Tower in Yas Bay as well as the new Sadiyaat Lagoons phase. Several new projects including residential, commercial and mixed-use developments are also in the planning / design stage and are expected to be officially announced in the next 6 months. The rental market recorded annualized growth rates of approximately 3% and 4% for apartments and villas respectively. Average rental rates for apartments increased marginally during the quarter, but prime and luxury properties recorded significant growth in the range of 4% to 6%. Compared to the same period last year, these rates have almost reached 10% over the year. Rates for apartments in buildings with low''end 2023. In Dubai, Asteco notes that around 6,250 residential units were delivered in the third quarter of 2023, including 4,700 apartments and 1,850 villas. While this represents a moderate decline from previous quarters, it is still a significant volume. More than 130,000 new residential units are expected to be delivered in the next three to four years. Growing demand for office space will lead to the launch of new commercial projects in the near future. The completion of Uptown Tower, a 500,000 square feet Grade A development at Jumeirah Lakes Towers (JLT), is a significant milestone.

The Northern Emirates, like Dubai, has witnessed a steady stream of new projects impacting the market, with average quarterly increases in apartment and villa sale prices of 3% and 2% respectively. Apartment rents in the Northern Emirates continue to grow moderately, with an increase of 2% in the third quarter of 2023 and a 4% annualized rate. Office rents in Sharjah rose marginally by 1% over the past three months due to improved market confidence and business expansion, although net effective rents may have been impacted by additional incentives. The annualized change is 5%. Transaction activity has increased significantly in a worldwide economic environment, as evidenced by the reported''Sharjah Real Estate Registration Agency on 59,258 real estate transactions in the first 9 months of 2023, representing an increase of 15% compared to the same period last year. In addition, Ajman's Land and Real Estate Registration Department noted a 61.5% year-on-year increase in real estate transactions in August 2023, highlighting the dynamics of a growing market in this region. The real estate market in Al Ain continued to show robust demand across all asset classes, indicating an overall positive market sentiment. Following a period of rental stagnation, recent data shows a significant increase in rental rates for good quality villas, averaging 3% -5% during the quarter. In addition, rental rates for high quality office space increased by an average of 2% in''third quarter. In terms of new supply, several residential developments were delivered in different areas of Al Ain, mostly concentrated in urban areas. These developments, together with changes in the rental market and growing demand, indicate a positive trajectory for the real estate market in Al Ain.