This growth is due to the demand for housing units from various segments of the population, in addition to the support provided by the government through its proactive initiatives aimed at promoting expansion in the real estate sector.
Residential and commercial real estate in Abu Dhabi
According to the report, the real estate market in Abu Dhabi recorded the delivery of a thousand residential units in the third quarter of 2023, distributed among various residential complex areas, especially in the Al Raha Beach area.
This period witnessed the launch of a group of major projects, and several projects are expected to be established in the future, including residential, commercial, and multi-use real estate projects that are currently in the planning or design stage, and are expected to be officially announced within the next six months.
The rental market recorded annual growth rates of about 3% and 4% for apartments and villas, respectively, while average apartment rental prices recorded marginal growth during this quarter of the year.
For its part, luxury and high-end real estate development projects recorded notable increases ranging between 4% and 6%.
These rates have reached approximately 10% at an annual rate compared to the same period last year.
As for rental prices for low-quality apartments, especially on Abu Dhabi Island, they are stable on a quarterly basis with marginal increases annually.
It has been observed that the demand for villas continues to rise strongly, especially in new complexes.
Moreover, office rental prices witnessed a jump of 6% during this quarter and by 10% on an annual basis. This is due to the scarcity of luxury office and administrative spaces available in the market with strong demand for them from expanding companies, in addition to proactive government initiatives aimed at attracting… Foreign investment.
Real estate unit sales transactions that were completed during the third quarter of 2023 amounted to a total of 4,160 transactions.
This number represents a huge jump in the volume of sales achieved in the real estate market in Abu Dhabi, as it is equivalent to an increase of 32% compared to sales in the previous quarter of the same year, and a huge increase of 102% compared to the same period last year.
Apartment selling prices continued to be relatively stable during the third quarter of 2023.
On the other hand, villa sales prices witnessed a slight increase of 1% on a quarterly basis and an annual increase of 3%.
The demand for off-plan real estate units available for sale continued to rise, especially luxury units, which were most in demand by foreign investors.
Residential and commercial real estate in Dubai
Despite the world’s ongoing uncertainties regarding inflation, interest rates, climate change, conflict and technological advances, Dubai’s real estate market is poised for a strong end to 2023.
In Dubai, the numbers registered with Asteco indicate that approximately 6,250 residential units will be delivered in the third quarter of 2023, which includes 4,700 apartments and 1,850 villas.
Although the aforementioned figures indicate a moderate decline compared to previous quarterly periods, they represent a huge volume of real estate sales.
More than 130,000 new housing units are expected to be delivered over the next three to four years.
The increasing demand for office space is likely to prompt the launch of new commercial real estate unit projects in the near future.
Growth potential in the rental property market is still available for certain types of real estate projects and regions.
The rental market in Dubai is witnessing a gradual moderation in price increases.
Asteco data reveals a clear slowdown in the growth of profits from renting apartments, villas and offices during the three months, as the aforementioned returns recorded 3%, 2% and 4%, respectively.
At the annual level, the previous percentages changed and recorded 18%, 19%, and 29%, respectively (apartments, villas, and offices).
The market has seen a boom in the availability of new holiday homes.
According to the latest data issued by the Department of Economy and Tourism in Dubai, there has been a significant increase of 45% year-on-year in the number of holiday homes officially registered in Dubai from March 2023.
In terms of selling prices, the average growth in selling prices continued to slow, with quarterly increases of 1% for apartments, 2% for villas, and 3% for offices, and on an annual basis, the aforementioned changes amounted to 12%, 14%, and 19%, respectively.
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