Abu Dhabi has witnessed a remarkable surge in the volume and value of off-plan property sales as real estate investors look to capitalise on the capital, according to Property Finder data.
The Q3 2023 Market Watch Report revealed record transaction values in Abu Dhabi as demand for property was found to be a preferred investment with great potential for long-term value as a result of emerging trends that are reshaping the narrative for real estate in the UAE.
Data from the Department of Municipalities and Transport (DMT) shows Abu Dhabi experienced a significant surge in total sales transactions (both residential and commercial) during Q3 2023.
The number of residential transactions reached a record high for a quarter, with 3,718 transactions compared to 1,569 transactions in Q3 2022.
This reflected a substantial increase of 137 percent, representing around 92 percent of the total transaction and 90 percent of the overall value.
Abu Dhabi recorded 2,954 off-plan sales transactions compared to 1,041 transactions in Q3 2022, representing 79 percent of the total transactions as opposed to 66 percent of the total transactions in Q3 2022.
The market saw a significant year-on-year surge of 184 percent in terms of volume and a 367 percent increase for the same period in terms of value.
The off-plan sales transaction value in Q3 2023 contributed to 87 percent of the total sales transaction value, compared to 64 percent in Q3 2022, reaching AED12.713bn ($3.5bn) compared to AED2.72bn ($740.6m).
The off-plan market witnessed an increase of 184 percent compared to Q2 2023.
With a strong economic framework and increased foreign confidence, Abu Dhabi’s real estate sector has been thriving with support from both the public and private sectors.
Existing/ready market sales in Abu Dhabi registered 764 ready properties compared to 528 in Q3 2022, representing around 21 percent of the total transactions compared to 34 percent in Q3 2022, marking a notable growth of 45 percent compared to Q3 2022.
The existing/ready transaction value in Q3 2023 contributed to 13 percent of the total sales transaction value, compared to 36 percent in Q3 2022, by reaching AED1.873bn ($510m), while transaction values witnessed a notable increase of 25 percent compared to AED1.502bn ($409m) in Q3 2022.
In Abu Dhabi, Al Reem Island, Yas Island, Al Raha Beach, Saadiyat Island, and Masdar City remained a focus for those who want to own an apartment for investment or residence purposes in Q3 2023.
Al Raha Beach, Khalifa City, Corniche Road, Al Khalidiya, Mohamed Bin Zayed City, Yas Island, Al Reef, and Saadiyat Island were preferred choices for apartment and villa rentals.
Despite the global economic changes, the luxury real estate market in Saadiyat Island demonstrated impressive durability.
Upscale properties persistently maintained their value, exhibiting a consistent rate of growth during the initial half of 2023.