A new study has revealed that the total real estate sales in Abu Dhabi and Dubai surpassed 455.7 billion AED, or $124 billion in 2023, thanks to the robust off-plan market that managed to break annual records.
A real estate portal based in the UAE, Property Finder, released data showing that the total sales transactions in Dubai reached an annual record of AED 411.74 billion last year.
This is an increase of 56% from 2022. Likewise, the total transaction values in Abu Dhabi were recorded at AED 44 billion, which represents a 120% increase from a year earlier when they were AED 19.9 billion.
Robust off-plan market
Growth in the real estate sector in both Abu Dhabi and Dubai surged due to off-plan sales, with a flourishing tourism industry benefitting the former further.
The report said that this rise in tourism had also contributed to a rising housing demand. In 2023, the value of off-plan sales in Dubai reached AED 160.46 billion.
This was an increase of 72.3% from 2022, when the value of off-plan sales had stood at AED 93 billion. 39% of the total value of transactions was contributed by off-plan sales.
In 2023, there was a surge in off-plan sales from 2022, as they rose from 43,151 to 68,783, which made it a 59.4% increase.
In addition, it also became the highest-ever annual performance seen in the off-plan market. In 2022, existing sales in Dubai had stood at 53,308, but they increased to 64,351 in 2023.
This was the highest annual performance recorded with a 20.72% year-on-year increase. The biggest off-plan sales in 2023 were recorded in Palm Jumeirah, Business Bay, Marsa Dubai and A Merkadh.
The report said that the only decline in the value of off-plan transactions as compared to 2022 was recorded in Burj Khalifa, as they declined by 15%.
A similar trajectory was also seen in Abu Dhabi in 2023 in the off-sales segment, which reached AED 35.57 billion. This was about 81% of the total value of transactions that were conducted in the emirate.
Back in 2022, the total value of off-sales transactions stood at AED 12.98 billion in 2022, which made it about 65% of the total value of real estate transactions.
Hence, the off-sales segment recorded a 174% increase in 2023 as compared to a year earlier.
The popular neighborhoods for apartments in 2023 in Abu Dhabi were Khalifa City, Al Raha Beach, Yas Island and Al Reem Island.
As far as the popular areas for villas are concerned, these were Al Reem Island, Al Reef and Saadiyat Island.
The real estate market is expected to continue its upward trajectory in both Dubai and Abu Dhabi in 2024, even though the pace is predicted to slow down.