In early 2024, there was a high demand for existing projects in both Dubai and Abu Dhabi, unlike the same period in 2023.
In the UAE, the first quarter of 2024 saw a rise in demand for ready properties as tenants sought ownership to avoid increasing rents.
Property Finder's data reveals that unlike the first quarter of 2023, where off-plan transactions were prevalent, there was substantial demand for existing projects in both Dubai and Abu Dhabi.
Over the past three years since the pandemic, rents in the UAE have consistently increased. This upward trend is anticipated to persist in 2024 due to the unprecedented demand driven by the rising population. The escalating rental costs have led UAE residents to consider purchasing properties in Dubai and Abu Dhabi. This shift not only allows residents to save on rental expenses but also enables them to benefit from the appreciation in property values.
"2024 has ushered in an intriguing and promising phase of growth,"
stated Cherif Sleiman, Chief Revenue Officer of Property Finder.
Data reveals that in Q1 2024, the existing/ready property market in Dubai saw almost 19,600 transactions, marking a 54% share of the total transactions. This is a notable increase from around 15,000 transactions, which accounted for 48% of the total transactions in Q1 2023. This performance reflects a substantial volume growth of 30% compared to Q1 2023.
With transaction values reaching Dh78.2 billion in Q1 2024, existing sales contributed to 68% of the total transaction value, compared to 60% in Q1 2023. Consequently, the existing/ready transaction value observed a significant 46% increase from Dh53.6 billion in Q1 2023.
Data from the Dubai Land Department (DLD) revealed a notable surge in total sales transactions in Q1 2024. The number of transactions recorded was the second-highest ever for the quarter, totaling more than 36,000 transactions, compared to 31,000 transactions in Q1 2023, reflecting a substantial increase of 17 percent.
Among these transactions, approximately 16,600 were off-plan sales, compared to 16,000 transactions in Q1 2023. Off-plan sales represented 46 percent of the total transaction volume, a decrease from 52 percent recorded in Q1 2023.
814 transactions in Abu Dhabi
In Q1 2024, Abu Dhabi's real estate sector saw 814 residential transactions, constituting around 38 percent of the total transactions, a notable increase from the 628 transactions, which made up 27 percent of the total transactions in Q1 2023. This represented a significant growth of 30 percent compared to Q1 2023. The existing/ready transaction value in Q1 2024 reached Dh1.74 billion, contributing to 29 percent of the total sales transactions value, up from 27 percent in Q1 2023.
The Department of Municipalities and Transport (DMT) in Abu Dhabi noted a slight decrease in total sales transactions (both residential and commercial), with residential transactions totaling around 2,145 transactions compared to 2,286 transactions in Q1 2023.
In Abu Dhabi, the off-plan market witnessed approximately 1,331 sales transactions compared to 1,658 transactions in Q1 2023, accounting for 62 percent of the total transactions, down from 73 percent in Q1 2023. This marked a significant year-on-year decline of 20 percent in terms of volume.
News Source: Khaleej Times
