Record Growth in Residential Transactions in Abu Dhabi
Residential transactions in Abu Dhabi grew by 56 percent, recording AED67.8 billion
The real estate sector in the United Arab Emirates (UAE) has seen remarkable growth this year, with residential transactions in Abu Dhabi alone surging by a significant 56 percent. According to official data, the value of these transactions reached AED67.8 billion (approximately $18.5 billion) in the first nine months of 2023. Sales prices also saw a notable uptick, escalating by 3.9 percent annually during October.
In Dubai, real estate transactions also saw a substantial increase, with the value going up by 37 percent annually in the first ten months of 2023, surpassing a whopping AED500 billion ($136.2 billion). The number of transactions conducted in Dubai during the first three quarters rose by 36 percent annually, totaling over 116 thousand transactions, as reported by the Emirates News Agency.
The real estate market in Abu Dhabi has seen exceptional performance this year, with property sales hitting AED50 billion since the beginning of 2023. Meanwhile, Dubai’s real estate sales have approached AED400 billion during the same period. Sharjah has also emerged as a key player in the real estate market, attracting both Arab and foreign investors due to its secure and appealing investment environment.
Looking ahead, GlobalData projects a robust growth rate for the UAE’s real estate sector, with a growth rate of 3.3 percent expected in 2023 and 4 percent in 2024. The sector’s growth is bolstered by investments from both the public and private sectors, with Sharjah spearheading major development projects in transportation, energy, tourism, and housing.
The construction sector in the UAE is also predicted to exhibit significant growth, with an annual growth rate of 3.9 percent projected from 2025 to 2027. This growth will be fueled by investments in infrastructure, renewable energy, housing, industrial, and tourism projects, in line with the ambitious ‘We the UAE 2031’ vision. The government aims to double the country’s GDP from AED1.5 trillion in 2022 to AED3 trillion by 2031 through a series of development and economic projects.
With the real estate sector in the UAE showing resilience and promising growth prospects, investors and stakeholders can look forward to a dynamic market in the coming years.
