CBRE: Strong demand for residential real estate in UAE
The “Residential Market Review” report for the third quarter, issued by the international real estate company CBRE showed an increase in demand for residential real estate in the Emirates, as its strength continued during the third quarter of this year, which contributed to maintaining strong performance.
Abu Zabi Residences:
According to the report, the total volume of residential transactions in Abu Dhabi reached 2,930 transactions in the third quarter of 2023, an increase of 84.3% over the previous year, as the average prices of residential units in Dubai increased by 19.6% during the year until September 2023, and the average prices of apartments increased during this period ,about 7,844 transactions were recorded, representing an annual growth of 91.1%, which supported the increase in the volume of residential transactions in the Emirate of Abu Dhabi, a 101.6% growth in off-plan property sales, and a 46.0% increase in secondary market sales.
The sources announced that from the beginning of the year until the third quarter, the average prices of apartments in Abu Zabi increased by 0.9%, while the average prices of villas decreased slightly by 0.1%, and in the same period the average rents for apartments and villas in Abu Zabi increased by 1.1%.
Looking at recent rental records, the average annual rent for apartments reached 66,823 dirhams and 161,683 dirhams for villas. With regard to supply, a total of 2,262 units were delivered in Abu Dhabi from the beginning of the year until the third quarter of 2023, 63.4% of which were in (Najma Abu Zabi and Shams Abu Zabi).
Reports indicated that residential transactions in Abu Zabi increased to 84%, while the average prices of residential units in Dubai increased by 19.6% during the year until September 2023, as the average prices of apartments increased during this period by 19.7% and villas by 18.9%.
On the other hand, the rental growth rate declined throughout the year, as the average residential rents in Dubai increased during the year until September 2023 by 20.6%, a decrease from the growth recorded in the previous month, which amounted to 21.7%.
It is expected that 27,095 residential units will be delivered, since the beginning of the year until now, with 46.4% of this supply located in Meydan One, Downtown Dubai, and Business Bay, where another 34,651 units are expected to be delivered during the remainder of the year.
From the beginning of the year until September 2023, the total volume of transactions reached 87,163 transactions, and thus it is the highest number recorded during the current year, as off-plan real estate transactions.