Abu Dhabi real estate experiences soaring surge in off-plan sales

Abu Dhabi, a city on the rise, has witnessed an unprecedented surge in both volume and value of off-plan property sales, signalling a keen interest from real estate investors aiming to capitalise on the city’s potential, according to the latest analysis from Property Finder.

The Q3 2023 Market Watch Report divulged staggering transaction values in Abu Dhabi, underscoring the city’s status as a preferred investment hub with long-term value potential. Emerging trends in the real estate landscape of the UAE have been reshaping the narrative, drawing attention and significant investment.

Data from the Department of Municipalities and Transport (DMT) highlighted a substantial upswing in total sales transactions, encompassing both residential and commercial properties, during Q3 2023. The residential sector, in particular, experienced a record-breaking quarter with 3,718 transactions, marking a significant 137 per cent increase from Q3 2022.

Off-plan sales transactions took centre stage, with 2,954 recorded in Q3 2023 compared to 1,041 in the same period last year, constituting an impressive 184 per cent year-on-year surge in volume and a staggering 367 per cent increase in value. The off-plan market’s transaction value in Q3 2023 accounted for a remarkable 87 per cent of the total sales transactions value, reaching AED12.713 billion ($3.5 billion), compared to AED2.72 billion ($740.6 million) in Q3 2022.

These figures signify a robust market, witnessing a remarkable 184 per cent increase compared to Q2 2023, a testament to the city’s economic resilience and growing foreign confidence.

The existing/ready market, though experiencing notable growth, represented a smaller portion of the transactions. In Q3 2023, 764 ready properties were sold, marking a 45 per cent growth from Q3 2022. However, the existing/ready transaction value contributed to 13 per cent of the total sales transactions value, reaching AED1.873 billion ($510 million), compared to 36 per cent in Q3 2022.

Throughout Q3 2023, areas such as Al Reem Island, Yas Island, Al Raha Beach, Saadiyat Island, and Masdar City attracted significant attention from those seeking apartments for investment or residence. Al Raha Beach, Khalifa City, Corniche Road, Al Khalidiya, Mohamed Bin Zayed City, Yas Island, Al Reef, and Saadiyat Island emerged as preferred choices for apartment and villa rentals.

Remarkably, despite global economic changes, the luxury real estate market in Saadiyat Island demonstrated impressive durability. Upscale properties maintained their value, exhibiting consistent growth in the first half of 2023.

Cherif Sleiman, Chief Revenue Officer at Property Finder, commented on the market’s performance, stating, “We closed Q3 with an increased uptake in off-plan properties, strong investor confidence, and a rising demand for ownership. Q3 2023 has only taken that success a notch higher, revealing even more opportunities to grow in the months to come. In the coming months, we remain committed to monitoring all aspects of the market trends to enable better decisions for property seekers through data-backed transparency and enhanced trust across our platform.”

Original article reference: Arabian Business.

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