UAE Property Market Braces for Record-Breaking Year as Investor Interest in Mid-Market and Top-End Real Estate Surges
The UAE property market is set to witness a record-breaking year in 2023, as both Abu Dhabi and Dubai have seen strong demand and price growth in the first half of the year. According to CBRE, a leading real estate consultancy, the total number of real estate transactions in the UAE increased by 76.4 percent year-on-year in Q1 2023, driven by a surge in off-plan and ready properties across various segments of the market.
Abu Dhabi: A Rising Star in the UAE Property Market
Abu Dhabi, the capital of the UAE, has emerged as a rising star in the UAE property market, as it recorded a 94.1 percent increase in real estate transactions year-on-year in Q1 2023. This impressive performance was mainly attributed to a 160.4 percent increase in off-plan transactions, which accounted for 62 percent of the total transactions in the emirate.
The off-plan market in Abu Dhabi was boosted by several factors, such as attractive payment plans, incentives, discounts, and fee waivers offered by developers, as well as the launch of new projects in prime locations such as Yas Island, Saadiyat Island, Al Reem Island, and Al Maryah Island. Some of the notable off-plan projects that attracted high demand in Abu Dhabi include Yas Acres, Park View, Mamsha Al Saadiyat, and The Bridges.
The ready market in Abu Dhabi also witnessed a robust growth of 28.8 percent year-on-year in Q1 2023, with villas and townhouses being the most sought-after property types. The average villa prices in Abu Dhabi increased by 9.7 percent year-on-year in Q2 2023, reaching AED 10,833 per square meter. The average apartment prices, on the other hand, increased by 2.9 percent year-on-year in Q2 2023, reaching AED 9,667 per square meter.
The rental market in Abu Dhabi remained stable in Q1 2023, as the average rents for apartments and villas declined marginally by 0.6 percent and 0.4 percent respectively quarter-on-quarter in Q2 2023. The average annual rent for a two-bedroom apartment in Abu Dhabi was AED 77,000 in Q2 2023, while the average annual rent for a three-bedroom villa was AED 153,000.
CBRE expects the Abu Dhabi property market to maintain its positive momentum in Q2 2023, as the emirate continues to benefit from its economic diversification, infrastructure development, regulatory reforms, and COVID-19 vaccination program. The demand for residential properties in Abu Dhabi is expected to increase further, especially from end-users and long-term investors who are looking for quality and affordable options.
Dubai: A Global Hub for Real Estate Investment
Dubai, the most populous and cosmopolitan city in the UAE, has also seen a remarkable recovery in its property market in Q1 2023, as it recorded a 43.3 percent increase in real estate transactions year-on-year. This impressive performance was mainly attributed to the strong demand for ready properties, which accounted for 74 percent of the total transactions in the Emirates.
The ready market in Dubai was driven by several factors, such as attractive prices, incentives, discounts, and fee waivers offered by developers and sellers, as well as the launch of new projects and communities that cater to different segments of the market. Some of the notable ready projects that attracted high demand in Dubai include Arabian Ranches III, Dubai Hills Estate, Jumeirah Village Circle (JVC), Town Square Dubai
UAE Property Market Braces for Record-Breaking Year as Investor Interest in Mid-Market and Top-End Real Estate Surges
The UAE property market is set to witness a record-breaking year in 2023, as both Abu Dhabi and Dubai have seen strong demand and price growth in the first half of the year. According to CBRE, a leading real estate consultancy, the total number of real estate transactions in the UAE increased by 76.4 percent year-on-year in Q1 2023, driven by a surge in off-plan and ready properties across various segments of the market.
Abu Dhabi: A Rising Star in the UAE Property Market
Abu Dhabi, the capital of the UAE, has emerged as a rising star in the UAE property market, as it recorded a 94.1 percent increase in real estate transactions year-on-year in Q1 2023. This impressive performance was mainly attributed to a 160.4 percent increase in off-plan transactions, which accounted for 62 percent of the total transactions in the emirate.
The off-plan market in Abu Dhabi was boosted by several factors, such as attractive payment plans, incentives, discounts, and fee waivers offered by developers, as well as the launch of new projects in prime locations such as Yas Island, Saadiyat Island, Al Reem Island, and Al Maryah Island. Some of the notable off-plan projects that attracted high demand in Abu Dhabi include Yas Acres, Park View, Mamsha Al Saadiyat, and The Bridges.
The ready market in Abu Dhabi also witnessed a robust growth of 28.8 percent year-on-year in Q1 2023, with villas and townhouses being the most sought-after property types. The average villa prices in Abu Dhabi increased by 9.7 percent year-on-year in Q2 2023, reaching AED 10,833 per square meter. The average apartment prices, on the other hand, increased by 2.9 percent year-on-year in Q2 2023, reaching AED 9,667 per square meter.
The rental market in Abu Dhabi remained stable in Q1 2023, as the average rents for apartments and villas declined marginally by 0.6 percent and 0.4 percent respectively quarter-on-quarter in Q2 2023. The average annual rent for a two-bedroom apartment in Abu Dhabi was AED 77,000 in Q2 2023, while the average annual rent for a three-bedroom villa was AED 153,000.
CBRE expects the Abu Dhabi property market to maintain its positive momentum in Q2 2023, as the emirate continues to benefit from its economic diversification, infrastructure development, regulatory reforms, and COVID-19 vaccination program. The demand for residential properties in Abu Dhabi is expected to increase further, especially from end-users and long-term investors who are looking for quality and affordable options.
Dubai: A Global Hub for Real Estate Investment
Dubai, the most populous and cosmopolitan city in the UAE, has also seen a remarkable recovery in its property market in Q1 2023, as it recorded a 43.3 percent increase in real estate transactions year-on-year. This impressive performance was mainly attributed to the strong demand for ready properties, which accounted for 74 percent of the total transactions in the Emirates.
The ready market in Dubai was driven by several factors, such as attractive prices, incentives, discounts, and fee waivers offered by developers and sellers, as well as the launch of new projects and communities that cater to different segments of the market. Some of the notable ready projects that attracted high demand in Dubai include Arabian Ranches III, Dubai Hills Estate, Jumeirah Village Circle (JVC), Town Square Dubai