Total real estate sales in Dubai and Abu Dhabi top $124bln in 2023

Real estate sales in Dubai and Abu Dhabi collectively crossed 455.7 billion UAE dirhams ($124 billion) in 2023, boosted by a robust off-plan market that broke annual records, according to a new study.

Data released by Property Finder, a UAE-based real estate portal, revealed that Dubai witnessed an annual record in total sales transactions, valued at AED 411.74 billion in 2023, marking a 56% year-on-year increase from 2022.

Similarly, Abu Dhabi witnessed total transaction values amounting to AED 44 billion, marking a 120% increase from AED 19.9 billion in the previous year.

Robust off-plan market

Off-plan sales pushed growth in the real estate sector across Dubai and Abu Dhabi, with the former benefiting further with a flourishing tourism industry, which contributed to a heightened housing demand, the report stated.

Off-plan sales in Dubai reached AED 160.46 billion in value in 2023 compared to AED 93 billion in 2022, registering around a 72.3% increase. The off-plan transactions contributed to 39% of the total transaction value.

The emirate saw off-plan sales surge to 68,783 transactions in 2023, up from 43,151 in 2022, marking a 59.4% increase and establishing the highest-ever annual performance for the off-plan market.

Existing sales in Dubai surged to 64,351 transactions from 53,308 in 2022, marking the highest annual performance on record with a year-on-year increase of 20.72%.

Marsa Dubai, the Palm Jumeirah, A Merkadh and Business Bay saw the biggest off-plan sales in 2023, with Burj Khalifa seeing the only dip of -15% in the total value of off-plan transactions compared to 2022, the report said.

Abu Dhabi followed a similar trajectory in the off-sales segment in 2023, reaching AED 35.57 billion and contributing to 81% of the total sales transactions value in the emirate. This indicated a 174% increase compared to 2022 when the total sales transactions value was AED 12.98 billion, or 65% of the total value.

Al Reem Island, Yas Island, Al Raha Beach, and Khalifa City were popular neighbourhoods in 2023 for apartments, with Saadiyat Island, Al Reef, and Al Reem Island being a top draw for villas.

Source: Zawya