Dubai: “The Gulf”
In its latest annual data specialized in monitoring markets, Property Finder announced that the real estate sector in Dubai and Abu Dhabi has made remarkable progress in 2023. One of the major achievements in 2023 is that off-plan real estate sales in Abu Dhabi will witness a significant increase, occupying a larger share of total transactions compared to In the previous year, while the off-plan real estate market in Dubai recorded a noteworthy record with a noticeable boom, indicating the highest annual performance ever for the year 2023.
Recent data issued by the Dubai Statistics Center indicate that the real estate and construction sectors in Dubai witnessed growth of 3.6% and 1.9%, respectively, in the first half of 2023, contributing approximately 14.4% of the city’s gross domestic product for this year.
In 2023, sales transactions set a new annual record of AED 411.74 billion, up 56% from 2022. Strong economic growth and a booming tourism sector contributed to increased demand for housing.
Recorded sales transactions rose to 133,134, a massive 38% increase compared to 96,459 in 2022. This remarkable increase sets a new benchmark for unprecedented business growth.
According to data from the Department of Municipalities and Transport in Abu Dhabi, the number of sales transactions in Abu Dhabi reached record levels, recording 13,298 transactions, compared to 7,957 transactions in 2022, achieving a significant jump in the percentage of sales, reaching 75%.
Residential sales represented 97% of the total number and about 85% of the total value.
The value of sales transactions reached 44 billion dirhams, a significant increase of 120% compared to 19.9 billion dirhams last year.
Off-plan investment boom
Off-plan sales in Dubai hit a remarkable record in 2023, rising to 68,783 transactions from 43,151 in 2022, representing a 59.4% increase and marking the highest ever annual performance for the off-plan property market.
70.4% of off-plan transactions in Dubai are concentrated in the first ten regions, with the leading region contributing 14.4%, the second contributing 11%, and the third contributing more than 7.8%.
Abu Dhabi recorded 10,151 off-plan sales transactions, compared to 5,095 transactions in 2022, an increase of 76% of the total transactions, compared to 67% in 2022.
Sales transactions increased significantly, registering a growth of 99% year-on-year, with a 174% increase in value compared to the same period last year.
The value of off-plan sales transactions contributed 35,570 billion dirhams, compared to 12,989 billion dirhams recorded last year.
Ready real estate revenues
Current sales achieved a milestone in Dubai in 2023, rising to 64,351 transactions from 53,308 in 2022, representing the highest annual performance on record with a notable year-on-year increase of 20.72%.
Existing/ready transactions were distributed among 178 regions in 2023, constituting 51.2% of total transactions, reflecting the broad participation and strong performance of this sector.
Abu Dhabi recorded 3,147 sales transactions for ready properties in 2023 compared to 2,507 in 2022, representing about 24% of the total transactions compared to 33% in 2022, with a noticeable growth of 26% as of 2022.
Listings for real estate seekers
The areas of Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, Jumeirah Lakes Towers and Palm Jumeirah were the preferred options for those wishing to buy or rent an apartment.
As for those looking to own or rent villas, their favorite areas were “Dubai Hills Estate,” “Palm Jumeirah,” “Arabian Ranches,” “Damac Hills,” Mohammed bin Rashid City, “Al Barsha,” and “Jumeirah Damac Hills 2.”
The areas of Reem Island, Yas Island, Al Raha Beach, Khalifa City, Corniche Road, Saadiyat Island and Masdar City maintained their top spot on the list of preferred options for those wishing to buy or rent an apartment in Abu Dhabi for investment or residence purposes in 2023.
Those looking to buy or rent luxury villas or homes at reasonable prices, for the year 2023, were interested in the areas of Yas Island, Saadiyat Island, Al Reef, Al Reem Island, and Khalifa City.
Sherif Soliman, Chief Revenue Officer at Property Finder, said: “The booming real estate sector has witnessed the emergence of new trends, diversification of consumer segments, and increased business volume and demand.”
2024-01-09 19:07:26
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