Today's Edition
Abu Dhabi (Aletihad)
The Market Watch 2023 report by Property Finder on UAE Real Estate Trends and Insights highlights Abu Dhabi's thriving economic landscape and flourishing real estate sector. The report reveals impressive growth figures and a surge in confidence among investors, buoyed by strategic government initiatives.
Abu Dhabi Market
Abu Dhabi's economic performance in 2023 was robust, driven by a remarkable 6% growth in the non-oil sector during the first half of the year. This sector contributed 6% to the total GDP, with the manufacturing sector's share exceeding 8%, experiencing growth rates of 5.6% in Q1 and 12.4% in Q2.
The real estate activities and construction sectors in Abu Dhabi exhibited stellar growth, expanding by around 13.4% year-on-year in the first half of 2023, constituting 12% of the total GDP. The construction sector, contributing 17% to the sectors' growth in the first six months of 2023, played a significant role, contributing around 8.5% to the total GDP. Meanwhile, the real estate activities sector saw a 5.7% increase compared to the first half of 2022.
Total Sales Transactions 2023
Abu Dhabi witnessed a substantial uptick in total sales transactions, reaching an impressive figure of 13,298 in 2023, a noteworthy 75% increase from 7,957 transactions in 2022. Residential transactions dominated, representing 97% of the total volume and around 85% of the overall value. The total transaction value reached Dh43 billion, showing a remarkable 120% increase compared to Dh19.8 billion in 2022. The surge in transactions underscores investor confidence and trust in Abu Dhabi's real estate market, attributed to the government's efforts to enhance the investment environment and regulations, making it an increasingly attractive destination for investments.
Off-plan Sales Transactions 2023
The off-plan market continued to bolster Abu Dhabi's real estate market in 2023, with off-plan sales transactions reaching 10,151, a substantial increase from 5,095 in 2022. This represented 76% of the total transactions, a 99% year-on-year increase in volume, and a remarkable 174% increase in value. The value of off-plan sales transactions in 2023 reached an impressive Dh35.569 billion, contributing to 81% of the total sales transactions value. This showcases a significant surge from 65% in 2022 when its total sales transactions value was Dh12.989 billion.
Existing/Ready Sales Transactions 2023
The existing/ready market in 2023 demonstrated a robust performance with 3,147 transactions, constituting around 24% of the total transactions, reflecting a notable 26% growth compared to 2022. For the quarter-on-quarter performance, Q4 witnessed a 2% growth compared to Q3 2023, with the existing/ready transactions value reaching Dh8.078 billion. This contributed to 19% of the total sales transactions value, reflecting a 17% increase from Dh6.890 billion in 2022.
Abu Dhabi's real estate success story in 2023 showcases the emirate's resilience and attractiveness for investors, fueled by a dynamic economy and proactive government measures.
UAE Highlights
The UAE economy exhibited resilience, achieving a growth rate of 3.7% in the first half of 2023. Notably, the non-oil sector played a pivotal role, surging by 5.9% during the same period, according to the international news agency Reuters. Optimistic projections indicate an average annual increase of 4.25% over the next five years.
Dubai Sectors
In brief, the construction and real estate sectors, which experienced declines of 4.7% and 7.4% respectively in 2020 due to the impact of COVID-19, began their recovery journey. Encouragingly, the real estate sector initiated its recovery early in the subsequent year, while the construction sector demonstrated more pronounced improvement in the early months of 2023.
As per data from the Dubai Statistics Center, the real estate and construction sectors in Dubai witnessed growth rates of 3.6% and 1.9% respectively during the first half of 2023. Collectively, these growth figures contributed significantly, accounting for almost 14.4% of Dubai's total GDP for the year 2023.
This positive trend indicates a noteworthy rebound for these sectors, reflecting resilience and progress after the challenges posed by the pandemic in the preceding years.
