Additionally, Abu Dhabi’s off-plan market maintained a positive momentum recording 1,345 off-plan sales transactions in Q1 2023
Abu Dhabi’s real estate sector has registered solid growth for the first three months with its sales transaction value growing three-fold to hit AED11.602 billion ($3.2 billion) from AED3.633 billion last year, according to industry expert Property Finder.
Additionally, Abu Dhabi’s off-plan market maintained a positive momentum recording 1,345 off-plan sales transactions in Q1 2023 as compared to 713 transactions in Q1 2022, representing 66.4% of the total transactions compared to 51.6% of the total transactions in Q1 2022, stated Property Finder in its latest Market Watch Report for Q1 2023.
The property sector stands at the brink of transformation supported by the growth of stronger PropTech ecosystems, hence recording notable jumps in sales with high-value transactions, higher returns and evolving consumer choices, it stated.
Property Finder has in its findings recorded key transaction trends and insights for Abu Dhabi and Dubai’s rapidly evolving real estate sector.
A major trend witnessed by the industry experts is the rise of greener choices among potential investors and residents looking for new homes with Masdar City emerging as one of the most searched areas in Abu Dhabi.
The average price for one, two and three-bedroom apartments in Masdar City in Q1 stood at AED745,000, AED 1.1 million and AED 1.8 million respectively.
The total sales transaction value for Abu Dhabi in Q1 2023 witnessed an exceptional record by reaching AED 11.602 billion compared to AED 3.633 billion in Q1 2022, it stated.
Furthermore, Property Finder’s proprietary data revealed that Al Reem Island, Yas Island, Al Raha Beach and Saadiyat Island were among other preferred choices for those who wished to own an apartment for investment or residence purposes in Q1 2023.
A notable increase was also marked in the average asking price for apartments during Q1 2023 by 7% compared to Q1 2022. The upward trend was predominantly driven by studios, two and four-bedroom apartments.
On the other hand, Yas Island, Saadiyat Island, Al Reef, Al Reem Island and Khalifa City were top picks for affordable luxury villas and townhouses among home buyers. The average asking price for villas increased by seven percent compared to Q1 2022, due to a surge in demand for two and three-bedroom villas.
On Dubai’s real estate scene, Property Finder said a continued transformation in national agendas and foreign policies continued to keep Dubai at the top of its game within the real estate sector.
Marked by sustained growth, the city’s top-performing areas for owned villas in Q1 2023 included Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills and Mohamed Bin Rashed City, it stated.
Property Finder said Q1 witnessed a remarkable record for a quarter over the last decade. The registered sales reached 30,952 transactions compared to 20,352 transactions in Q1, recording a sharp increase of 52% YoY to be the highest performance for a quarter ever, driven by the outstanding performance of the off-plan transactions.
Off-plan sales in Dubai witnessed a new record by reaching 15,948 transactions in Q1 2023 compared to 8,467 in Q1 2022, it added.
Based on Property Finder’s data, the average asking price for apartments in Q1 2023 surged by 25% compared to Q1 2022. A significant increase was also found for villas, with 16% compared to Q1 2022.
In the rental sector, Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay and Jumeirah Lake Towers remained preferred choices for apartments in Q1 2023.
Rents in Dubai for apartments were found to have increased significantly in Q1 2023, compared to Q1 2022. On average, rent prices increased by 18 percent, although a heightened ROI simultaneously met key areas for different kinds of apartments.
Across the two emirates, consumer preferences were found to be rapidly evolving with bigger spaces being opted for more frequently, starting from two-three bedrooms and going up to four-five bedroom apartments and villas, said a top official.
Price increases were equally met with a surplus in values and ROI, paving the way for a healthier property ecosystem and bigger contributions to the nation’s overall GDP, remarked Scott Bond, UAE Country Manager at Property Finder.
“2022 ended on a good note with a heightened flow of foreign investment, and Q1 2023 ensured a sustained momentum – keeping up the trend. For those who are actively home searching, UAE’s real estate sector has much more to offer now than ever, with significant returns and wider options across some of the city’s top areas and future-ready communities,” he stated.
“As home search enablers, we look forward to more meaningful gains in the coming months, supported by a simultaneous growth in PropTech innovation to get people living the life they deserve,” he added.
The article was originally published on zawya.com