In the third quarter of 2023, both Dubai and Abu Dhabi witnessed significant growth in their real estate markets, with increased demand for both off-plan and existing properties. Property Finder, the leading property portal in the MENA region, released findings from its Q3 2023 Market Watch report, highlighting sustained interest from property seekers and record transaction values.
Dubai’s official Sales Price and Rental Performance index, developed by the Dubai Land Department in collaboration with Property Finder, showed remarkable results. The overall quarterly sales index for Q3 2023 recorded 1.554, with an index price of AED 1,429,187, indicating a 12.4% increase year on year.
The rental market also improved, with an overall rental index of 1.08, reflecting an enhanced rental environment compared to previous quarters.
Property Finder’s data revealed a substantial increase in transactions in Dubai, reaching 31,181 compared to 25,400 in Q3 2022, marking a 22.76% year-on-year increase. Off-plan transactions contributed significantly, accounting for 47.2% of total transactions and reaching the highest sales transaction volume for Q3 in a decade.
Abu Dhabi, according to the Department of Municipalities and Transport (DMT), experienced a surge in total sales transactions during Q3 2023, with a notable increase of 137% in residential transactions compared to Q3 2022. Off-plan transactions in Abu Dhabi also saw substantial growth, representing 79% of total transactions and contributing to 87% of the total sales transactions value.
The existing property market complemented overall growth, with Dubai recording the highest performance for a quarter ever recorded in terms of existing sales. Existing transactions made up 52.8% of the total sales transactions, reaching a record high in both volume and transaction value.
Dubai saw significant increases in rental contracts, with a year-on-year increase of 11.2%. More people were looking for homes in the city, driving prospects for sustained momentum in the coming months.
Top areas for property ownership and rentals were identified, with Dubai Marina, Downtown Dubai, and Business Bay emerging as popular choices for apartments. Dubai Hills Estate and Palm Jumeirah were considered prime locations for villas.
In Abu Dhabi, Al Reem Island and Yas Island remained focal points for apartment ownership, while Al Raha Beach and Khalifa City were preferred choices for both apartment and villa rentals.
Cherif Sleiman, Chief Revenue Officer at Property Finder, commented on the progress made in Q3 2023, noting increased uptake in off-plan properties, strong investor confidence, and rising demand for ownership. The coming months are expected to reveal more opportunities for growth in the real estate markets of both cities.