Property Sector in Dubai and Abu Dhabi Booming in 2023: Highlights and Achievements
Property Sector in Dubai and Abu Dhabi Sees Significant Growth in 2023
As 2023 comes to a close, the property sector in Dubai and Abu Dhabi is celebrating big wins, with increased transactions, greater returns, a spike in ownership, off-plan investments, and new projects on the rise. According to Property Finder, the leading property portal in the MENA region, both cities have seen substantial progress in their real estate sectors throughout the year.
In Dubai, the real estate and construction sectors experienced a respective growth of 3.6% and 1.9% in the first half of 2023, contributing nearly 14.4% to the city’s total GDP for the year. Sales transactions reached a record high of AED 411.74 billion, marking a 56% increase from the previous year. The robust economic growth and flourishing tourism industry have fueled heightened housing demand, with registered sales transactions reaching 133,134—a significant uptick from 2022.
Abu Dhabi also witnessed a record number of transactions in 2023, with 13,298 transactions compared to 7,957 in 2022, reflecting a 75% increase. Residential transactions accounted for 97% of the total volume and approximately 85% of the overall value, amounting to AED 44 billion—a remarkable 120% increase from the previous year.
Off-plan sales have also seen a boost in both cities, with Dubai recording 68,783 transactions in 2023—a 59.4% increase from 2022. In Abu Dhabi, 10,151 off-plan sales transactions were recorded, representing a 76% share of the total transactions.
Ready/existing properties have also seen steady returns, with existing sales in Dubai surging to 64,351 transactions in 2023—a 20.72% increase from 2022. Abu Dhabi recorded 3,147 transactions for ready properties, witnessing a notable growth of 26% from the previous year.
Top neighborhoods in Dubai for apartment ownership/rental included Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, Jumeirah Lakes Towers, and Palm Jumeirah. In Abu Dhabi, Al Reem Island, Yas Island, Al Raha Beach, Khalifa City, Corniche Road, Saadiyat Island, and Masdar City were preferred choices for apartment ownership/rental.
Looking back on a year of sustained progress, Cherif Sleiman, Chief Revenue Officer at Property Finder, commented, “2023 has been no less than exceptional for our sector. We saw new trends emerge, diversified consumer segments, increased scope for businesses in real estate, and a strong demand met by supply that is future equipped. Ready to host many more searches in 2024, we remain committed to empowering property seekers with all the information they need to make informed decisions and get people living the life they deserve.”
