Growth in the real estate markets of both Dubai and Abu Dhabi was fueled by off-plan sales, with Dubai experiencing a greater boost due to a flourishing tourism sector that increased the demand for homes.
- GBO CORRESPONDENT
Experiencing a robust off-plan market that set new annual records, Dubai and Abu Dhabi collectively achieved real estate sales exceeding 455.7 billion UAE dirhams (USD 124 billion) in 2023.
As per Property Finder’s data, a real estate portal operating in the United Arab Emirates, Dubai witnessed an unprecedented number of sales transactions in 2023, reaching a total of AED 411.74 billion, marking a 56% increase compared to the previous year.
In a similar vein, Abu Dhabi observed a surge in total transaction values, reaching AED 44 billion, reflecting a substantial 120% rise from the AED 19.9 billion recorded the year before.
Dependable Off-plan Market
According to the survey, the real estate market in both Dubai and Abu Dhabi experienced growth driven by off-plan sales, with Dubai benefiting more from a thriving tourism sector that increased home demand.
In 2023, the value of off-plan sales in Dubai rose to AED 160.46 billion, marking a 72.3% increase from AED 93 billion in 2022. Three-quarters of the overall transaction value came from off-plan trades.
The number of off-plan sales in Dubai increased to 68,783 transactions in 2023 from 43,151 in 2022, a 59.4% increase and the highest yearly performance for the off-plan sector to date.
Existing sales in Dubai saw a 20.72% year-over-year rise, reaching 64,351 transactions in 2023, up from 53,308 in 2022—the highest yearly performance ever.
According to the research, Marsa Dubai, Palm Jumeirah, A Merkadh, and Business Bay recorded the highest off-plan sales in 2023, with Burj Khalifa being the only location experiencing a decline in the overall value of off-plan transactions—15% less than in 2022.
In Abu Dhabi, the off-sales segment followed a similar trajectory in 2023, reaching AED 35.57 billion and constituting 81% of the emirate’s overall sales transaction value. This represented a 174% increase over 2022, when AED 12.98 billion, or 65% of the entire value, constituted the overall sales transaction value.
In 2023, popular neighborhoods for apartments in Abu Dhabi were Al Reem Island, Yas Island, Al Raha Beach, and Khalifa City; for villas, the most sought-after locations were Saadiyat Island, Al Reef, and Al Reem Island.
