Abu Dhabi’s Real Estate Market: MASSIVE Growth in Off-Plan Transactions

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Abu Dhabi's Real Estate

Abu Dhabi has witnessed an extraordinary surge in real estate transactions in the last year, with a remarkable 104% increase in off-plan sales, according to recent statistics. Despite the massive uptick in transactions, property prices in the emirate have remained broadly consistent, offering a unique opportunity for investors and homebuyers alike.

In 2023, the capital of the UAE saw its total volume of residential transactions climb to 11,235, marking a significant increase of 77.8% from the previous year. This growth has been primarily driven by a robust 104% rise in the off-plan market, complemented by a 27.7% uptick in secondary market sales, showcasing heightened investor confidence and a thriving real estate environment.

The fourth quarter of 2023 alone registered 3,107 transactions, demonstrating a year-on-year growth of 40.3%. This period also saw off-plan transactions rise by 41%, while secondary market transactions increased by 38.1%, highlighting the sustained momentum in Abu Dhabi’s real estate sector.

Abu Dhabi's Real Estate

Despite the flurry of sales activity, property prices have shown remarkable stability. Over the year leading up to the fourth quarter of 2023, the average price for apartments in Abu Dhabi saw a nominal increase of 1.1%, while villa prices remained largely unchanged, offering stability in investment returns. Rental prices have followed a similar trend, with average apartment rents increasing by 2% and villa rents by a marginal 0.8% over the same period.

The rental market, however, has seen a slight uptick, with average annual rents for apartments and villas reaching AED64,996 ($17,700) and AED163,098 ($44,400) respectively, in the final quarter of 2023. This indicates a steady demand for rental properties across the emirate.

In terms of property supply, Abu Dhabi witnessed the delivery of 2,961 new units in 2023, with a significant portion located in Shams Abu Dhabi and Najmat Abu Dhabi. Looking ahead, the market expects an influx of 4,438 units in the coming year, predominantly in Yas Island and Al Maryah Island, suggesting a continued expansion of the emirate’s residential landscape.

This surge in real estate transactions, coupled with stable prices and a growing supply of new units, positions Abu Dhabi as a vibrant and attractive market for both local and international investors. The emirate’s real estate sector appears set for continued growth and prosperity, making it an ideal time for potential buyers to consider Abu Dhabi for their next investment or residential purchase.

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