The real estate market in the United Arab Emirates experienced robust growth, with total sales transactions surpassing 455.7 billion UAE dirhams ($124 billion). This significant increase was primarily fueled by a thriving off-plan market that set annual records.
Data provided by Property Finder, a real estate portal operating in the UAE, revealed that Dubai achieved an unprecedented number of sales transactions in 2023, reaching AED 411.74 billion. This marked a substantial 56% increase compared to the previous year.
In a similar trend, Abu Dhabi witnessed a notable surge in total transaction values, reaching AED 44 billion. This represented a remarkable 120% growth from the AED 19.9 billion recorded in the preceding year.
Robust off-plan market
Off-plan sales were the driving force behind the real estate market’s growth in both Dubai and Abu Dhabi, with Dubai benefiting more from a thriving tourism sector that increased housing demand.
In 2023, Dubai’s off-plan sales reached a value of AED 160.46 billion, marking a 72.3% increase from AED 93 billion in 2022. Off-plan transactions accounted for a third of the total transaction value.
The number of off-plan transactions in Dubai rose to 68,783 in 2023, a 59.4% increase from 43,151 in 2022, marking the highest annual performance for the off-plan market to date.
Existing sales in Dubai experienced a 20.72% year-over-year increase, reaching 64,351 transactions in 2023, up from 53,308 in 2022—the highest annual performance ever.
Marsa Dubai, Palm Jumeirah, A Merkadh, and Business Bay recorded the largest off-plan sales in 2023. The report also highlighted that the Burj Khalifa was the only area to witness a decline in the total value of off-plan transactions, with a -15% decrease compared to 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 total sales transaction value. This marked a 174% increase from 2022 when AED 12.98 billion, or 65% of the total value, represented the sales transaction value.
In 2023, popular neighborhoods for apartments in Abu Dhabi included 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.
