In a stellar performance, the real estate markets of Dubai and Abu Dhabi reached a combined value of $124 billion (455.7 billion AED) in 2023, breaking records and showcasing the resilience of the UAE property sector. These insights, revealed in a recent study by Property Finder, illuminate the dynamic growth trajectory that both cities experienced, driven notably by a robust off-plan market.

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Dubai’s Spectacular Real Estate Surge

Dubai, a perennial real estate hotspot, witnessed a remarkable surge in sales transactions, totaling an impressive 411.74 billion AED. This marked an extraordinary 56% increase from the previous year, underscoring the city’s resilience and attractiveness to investors. The standout performer in Dubai’s market was the off-plan sector, contributing significantly to the overall transaction value.

Off-plan sales in Dubai skyrocketed to 160.46 billion AED, a staggering 72.3% surge from 2022. A third of the total transaction value was attributed to off-plan transactions, signifying the dominance and vitality of this market segment. The number of off-plan transactions in Dubai hit a historic high at 68,783, reflecting a substantial 59.4% increase from the previous year. Concurrently, existing sales in Dubai also achieved record-breaking figures, reaching 64,351 transactions with a notable 20.72% year-over-year increase.

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Key areas driving the off-plan market in Dubai included Marsa Dubai, Palm Jumeirah, A Merkadh, and Business Bay. Despite the overall surge, the Burj Khalifa experienced a slight decline of -15% in the total value of off-plan transactions compared to 2022.

Abu Dhabi’s Remarkable Real Estate Resurgence

Abu Dhabi joined the upward trajectory, with total transaction values reaching 44 billion AED, showcasing an exceptional 120% rise from 19.9 billion AED in the previous year. Similar to Dubai, Abu Dhabi’s real estate success story was fueled by a robust off-plan market.

Abu Dhabi’s off-plan sales segment witnessed an extraordinary surge to 35.57 billion AED in 2023, constituting a remarkable 81% of the emirate’s total sales transaction value. This represented a substantial 174% increase from 2022 when 12.98 billion AED, or 65% of the total value, constituted the sales transaction value.

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The Preferred Neighborhoods in 2023

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.

Conclusion: Thriving Market Conditions

The exceptional growth in real estate sales in both Dubai and Abu Dhabi is a testament to the resilience and attractiveness of the UAE property sector. The success story is significantly attributed to the robust off-plan market, demonstrating the continued confidence of investors in the region’s real estate potential.

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As we move forward, the thriving market conditions position Dubai and Abu Dhabi as key players in the global real estate landscape, offering lucrative opportunities for investors seeking growth and stability.