UAE

New Record Highs and Growing Demand in UAE Real Estate Market – Off Plan Property Exchange

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The real estate market in the United Arab Emirates (UAE) has experienced remarkable growth and increasing demand for both off-plan and existing properties, according to the latest Market Watch report by Property Finder for Q3 2023. This highlights a sustained interest from property seekers and record transaction values in Dubai and Abu Dhabi.

Record highs were achieved in the third quarter, indicating a successful period for the industry. The overall sales index for Dubai in Q3 2023 reached 1.554, with a corresponding index price of AED 1,429,187. The apartments sales index stood at 1.676, and the villas/townhouses sales index recorded 1.443. These figures represent growth in all categories, with a significant increase of 12.4% compared to the same period last year.


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Abu Dhabi also experienced a surge in total sales transactions, demonstrating a substantial increase of 137% in residential transactions compared to Q3 2022. This accounted for around 92% of the total transactions, reflecting a boost in the market and highlighting its overall value.

The contribution of off-plan transactions has played a crucial role in driving the long-term growth of both cities. In Q3 2023, Dubai saw off-plan properties account for 47.2% of the total transactions, while Abu Dhabi recorded 79%. These figures indicate the high demand for off-plan properties and their significance in the real estate market.

Existing properties continue to contribute to the positive trajectory of the sector. Despite the surge in off-plan properties, the existing property market has complemented overall growth by maintaining higher values. Notably, there has been a shift in tenants’ behavior, with more individuals preferring to own their homes instead of renting, influenced by the rising average market value for rentals.

The surge in demand for properties in the UAE can be attributed to various factors, including a strong economic framework and increased foreign confidence in the real estate sector. With more people seeking homes in both Dubai and Abu Dhabi, the future prospects for the market remain promising.

FAQ:

Q: What is the overall sales index for Dubai in Q3 2023?
A: The overall sales index for Dubai in Q3 2023 is 1.554.

Q: What contributed to the surge in total sales transactions in Abu Dhabi?
A: The surge in total sales transactions in Abu Dhabi was driven by a significant increase of 137% in residential transactions compared to Q3 2022.

Q: What percentage of total transactions do off-plan properties account for in Dubai?
A: Off-plan properties account for 47.2% of the total transactions in Dubai.

Q: Why are more individuals in the UAE preferring to own their homes instead of renting?
A: More individuals in the UAE are preferring to own their homes instead of renting due to the rising average market value for rentals.

Q: What factors have contributed to the growth in demand for properties in the UAE?
A: Factors contributing to the growth in demand for properties in the UAE include a strong economic framework and increased foreign confidence in the real estate sector.

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