Expectations for growth in the residential real estate sales market in Abu Dhabi

Abu Dhabi (Al-Ittihad) - According to the real estate market report for the third quarter of 2023, prepared by Asteco, one of the leading service providers in the UAE real estate market, an increase in residential property sales in Abu Dhabi is expected in the coming months. At the same time, the Dubai real estate market continues to show steady growth due to a new influx of projects.

This growth is a result of high interest from various population groups in purchasing residential properties, as well as government actions in the form of initiatives aimed at developing the real estate sector. According to the report, in the third quarter of 2023, 1,000 residential units were delivered in Abu Dhabi, distributed across different residential areas, particularly in the Al Raha Beach area.

Rental market

The rental market also showed positive trends with an annual growth of 3% and 4% for apartments and villas, respectively, while average rental prices for apartments increased slightly this quarter. Additionally, there was a significant rise in prices for high-quality and luxury projects, with an increase of 4-6%. On an annual basis, this increase was nearly 10% compared to the same period last year.

As for the rental of budget apartments, especially on Abu Dhabi Island, they remain stable quarter by quarter, with minimal increases year on year. At the same time, there is a strong increase in demand for villas, particularly in new residential complexes. Additionally, in the third quarter, rental prices for offices sharply rose, increasing by 6% quarter on quarter and by 10% year on year. This is due to a shortage of available premium office and administrative spaces and the growing demand for them from companies that are actively expanding, as well as government initiatives aimed at attracting foreign investment.

Real estate market in Abu Dhabi

The total number of residential property sales transactions for the third quarter of 2023 amounted to 4,160 deals.

• Prices for apartment salesremained relatively stable in the third quarter of 2023.
• The selling price of villasincreased by 1% compared to the previous quarter and by 3% year-on-year, which was associated with the rise in prices for the "Hadd Al-Sadiyat" project.

The demand for the sale of real estate at the construction stage remains high, especially for premium offerings, which attracts more foreign investors. In Dubai, according to data from the company "Asteco," around 6,250 residential units were handed over in the third quarter of 2023, including 4,700 apartments and 1,850 villas. The increased interest in office spaces is expected to drive the launch of new commercial projects in the near future.

Real estate prices in Dubai

As for real estate prices in Dubai, the average growth rates for sale prices continue to slow down: there was a 1% increase for apartments, 2% for villas, and 3% for offices on a quarterly basis. Year-on-year, these prices changed by 12%, 14%, and 19% respectively.

The situation in the northern Emirates

The situation in the northern Emirates is similar, where there is also a constant flow of new projects, which is affecting the real estate market with an increase in the sale prices of apartments and villas by 3% and 2% compared to the previous quarter. The average rental prices for apartments in the northern Emirates continued to rise, albeit at a modest pace, reaching 2% for the third quarter of 2023 and 4% year-on-year.

The real estate market in the Emirate of Al Ain

The demand in the real estate market in the Emirate of Al Ain continues to grow steadily across all asset categories, indicating positive trends. Recent data shows a noticeable increase in rental prices for luxury villas, averaging 3-5% this quarter. Additionally, the average rental prices for elite office spaces have risen by 2% in the third quarter, according to the report.