Many people were surprised to witness a sudden spike in the sales of real estate in Abu Dhabi in the 1st quarter of 2023. People who had saved up money to buy properties in the city had to reconsider their options because real estate prices surged tremendously.
Even the real estate market researchers wanted to find the reasons that led to the surge in prices of properties in Abu Dhabi. They have compiled the data related to the spike in property prices in the first quarter, making it public for a better understanding.
You can also go through the findings by the real estate researchers, so you can learn where the real estate prices are headed in Abu Dhabi.
Primary Reason behind the Surge
The primary explanation for the spike in real estate prices in Abu Dhabi is the recovery from the pandemic. A look at the same quarter from 2022, shows that the property prices were not as high as they’ve been recorded in this year’s first quarter.
The increase rate recorded for the real estate in Q1 2023 is much higher compared to Q1 2022. As the world has witnessed a strong recovery from the coronavirus since the beginning of 2022, its impact is now being felt in the global real estate market. The prices of real estate are witnessing a great spike and the real estate market in Abu Dhabi, United Arab Emirates, is witnessing a significantly higher spike.
Q1 2023 Real Estate Sales Transactions
According to market researchers, the sales transaction value recorded for Abu Dhabi in Q1 2023 is AED 11.6 billion. Compared to the recent quarter, the transaction value recorded in the first quarter of 2022 was AED 3.6 billion. The comparison shows that the transaction value has risen almost three times what it was recorded in Q1 2022.
The research report also provides information about Off-plan sales transactions. The data shows that in the recent quarter, the off-plan sales transaction have risen significantly, moving up to 1,345 deals. In the same quarter of 2022, the figure was recorded to be 713 deals.
Top Area Searches in Abu Dhabi
Among the areas most searched in Abu Dhabi, it is the Masdar City community that has earned the top spot. The deep analysis showed that the particular community was mainly searched for apartments starting from 1-bedroom to 3-bedroom apartments. The average prices for these apartments in Masdar City were AED 745,000, 1.1 million, and 1.8 million respectively.
Several other communities such as Saadiyat, Al Raha Beach, Yas Island, and Al Reem Island, were among the most searched by the potential buyers in Abu Dhabi.
The report has also revealed that from January 2023 to March 2023, the asking price by the existing owners for villas as well as apartments rose by 7%. The demand increased mainly because many buyers were proceeding with the deals despite the spike in prices.
Top Area Picks among Buyers and Renters
For potential buyers, the top picks for affordable townhouses and luxury villas were Khalifa City, Al Reem Island, Al Reef, Saadiyat Island, and Yas Island.
The demand for rental apartments rose in multiple areas but the most preferred areas were Al Khalidiya, Corniche Road, Khalifa City, Al Raha Beach, and Al Reem Island. As for the villa rentals, the most preferred areas were Saadiyat Island, Al Reef, Yas Island, Mohammed Bin Zayed, and Khalifa City.
How Will Entire 2023 Turn Out to Be?
The researchers have revealed that as the year 2022 came to an end, they could see a decent climb in real estate and rental prices. As the prices kept rising in the first quarter of 2023, becoming more momentous, it is clear where the real estate market is headed in Abu Dhabi.
The researchers predict that the increases would continue gaining momentum, because of the constant influx of foreign investments. Now that the pandemic is becoming part of history, western companies are increasing more investments in the UAE. As Abu Dhabi is the capital city of the country, it is definitely going to gain more attention from investors than any other emirates.
If you are planning to invest in real estate in Abu Dhabi and are waiting for prices to go down, then all I can say is that won’t be a good idea. With the rate with which the prices are going up, even if there is a decline, it may not bring the real estate prices in Abu Dhabi to the pre-2023 rates. Therefore, it is suggested that you make a move now, which may prove to be a highly profitable investment decision.