As per a recent analysis conducted by CBRE, Abu Dhabi’s real estate sector has shown a rising trend in demand for off-plan residential properties.
However, the rental market in Dubai is showing signs of a slowdown despite its booming real estate sector.
According to data released, the off-plan sales of homes in the UAE capital went up by 101.6% in the third quarter of the current year.
Consequently, the sales recorded a growth of more than 45% in terms of secondary market sales.
The overall volume of residential property transactions in the emirate also surged by 84.3% in the period of July to September of the current year. This growth was attributed to a high demand for off-plan property units.
On this note, off-plan transactions were recorded to have gone up by 135.5% in the third quarter of 2023.
Conversely, the secondary market showed a 22.7% increase in deals in the corresponding period of the previous year.
Projects
In the last couple of months alone, a significant number of residential projects have been launched in the capital city of the United Arab Emirates.
Consequently, a number of developers revealed that they managed to sell all the units of their off-plan complexes in the first phase alone.
There is no doubt about the fact that the third quarter of the current year registered solid demand in the residential market of UAE.
However, the real estate market, specifically rental market property, is beginning to show signs of deceleration.
Slowdown
By the end of September of 2023, the average rentals for residents in Dubai shot up by 20.6%, which was a lesser increase as compared to the previous month. In August 2023, the rentals in the city went up by 21.7%.
According to CBRE, the demand is relatively showing a rising trend, with the rental market showing considerable moderation.
However, it pointed out that the rate of rental growth has somewhat tapered off during the first nine months of the year.
CBRE went on to say that a number of residential areas revealed that rental demand has softened, with further moderation expected.
As a result, a large percentage of listings in such areas are starting to lower the asking rents for residential units.
In September 2023, the sales in the secondary market registered an increase of 30.5%, while sales of off-plan units went down by 41.5%, as compared to the previous month.
The overall volume of transactions in the first nine months of the year reached 87,163, which is the highest figure to have been recorded in the period.
The 19% rise in transactions in the secondary market, along with the 55.3% surge in off-plan deals, is indicative of a high volume of sales.
Dubai real estate
Meanwhile, till the 27th of October 2023, Dubai recorded around 1,761 transactions in properties and real estate.
The total value of these transactions stood at AED 23.38 billion, all of which were conducted in the first ten months of the current year.
As per the Dubai Land Department (DLD), 265 plots in the city had been sold at a value of AED 2.84 billion.
In addition, 1,496 villas and apartments had also been traded for a total transaction value of AED 3.71 billion.
