The UAE’s residential market continued to be robust in the third quarter of 2023, with transaction volumes and prices rising in Abu Dhabi and Dubai on the back of higher demand from buyers, a report has said.
In Abu Dhabi, the total volume of residential transactions rose by 84.3 per cent annually to 2,930 in the three months to the end of September, driven by a 101.6 per cent growth in off-plan sales and a 46 per cent increase in secondary or ready home sales, consultancy CBRE said.
Average apartment prices in Abu Dhabi were up 0.9 per cent on an annual basis while average villa prices dropped marginally by 0.1 per cent during the three-month period, the report said.
The UAE‘s property market has made a strong rebound due to government initiatives and overall growth in the economy, driven by higher oil prices.
Abu Dhabi recorded 10,557 real estate transactions worth Dh46.33 billion ($12.61 billion) in the first half of 2023 amid strong demand from buyers, the emirate's media office reported in July, citing data from the Department of Municipalities and Transport.
The value of the deals more than doubled during the six-month period while the volume of transactions, which include property sales and mortgages, rose by 41 per cent on an annual basis, it said at the time.
Average apartment and villa rents in Abu Dhabi also increased by 1.1 per cent each in the third quarter while average apartment and villa annual rents stood at Dh66,823 and Dh161,683, respectively, according to the CBRE report.
In Dubai, residential prices rose by 19.6 per cent annually during the three-month period, with average apartment and villa prices increasing by 19.7 per cent and 18.9 per cent, respectively.
The total volume of residential transactions from January to September stood at 87,163, which is “the highest figure ever recorded over this period”, the report said.
“Strong performance continues to be seen in the UAE’s residential market in the third quarter of the year,” said Taimur Khan, head of research of Mena at CBRE in Dubai.
“The elevated levels of activity, paired with the lack of upcoming stock in both Abu Dhabi and Dubai, will likely continue to drive price growth moving forward.”
On the supply front, 2,262 units were handed over to customers in Abu Dhabi from the start of the year up to the third quarter of 2023, with 63.4 per cent of this stock being delivered in Najmat Abu Dhabi and Shams Abu Dhabi, CBRE said.
By the end of the year, an additional 3,521 units are set to be completed, with 63.1 per cent of the new stock to expected to be delivered on Al Maryah Island.
In Dubai, 27,095 residential units are estimated to have been delivered from January until the end of September, with 46.4 per cent of this supply being located in Meydan One, Downtown Dubai and Business Bay.
A further 34,651 units are expected to be handed over the remainder of the year.