Analytical review of the UAE residential real estate market

Residential real estate in Dubai

• In the first half of 2023, about 100 new projects were announced in Dubai, totaling 40.9 thousand lots;
• The average cost of a lot in the segment of under-construction complexes with apartments was 1.5 million AED, while the average cost of a villa in the primary market increased by 30% in a year and amounted to 2.4 million AED;
• The cost per square meter of apartments in the primary market increased by 6% in a year, reaching 20.3 thousand AED, while the price of villas and townhouses increased by 17% in a year, amounting to 12.8 thousand AED per square meter;
• Demand continues to show high performance: in the second quarter of 2023, 30 thousand transactions were concluded, which is 2% lower than the previous quarter;
• In the first half of 2023, a total of 61.2 thousand transactions were concluded (+43% compared to the first half of 2022) totaling 179.9 billion AED;
• The most in-demand areas in the market for new apartment developments in the second quarter of 2023 were Dubai Marina, Jumeirah Village Circle, Business Bay, Dubai Hills Estates, and Downtown Dubai;
• The most in-demand areas in the primary market for villas and townhouses were mainly concentrated in the locations of Damac Lagoons, Arabian Ranches III, Town Square, Damac Hills 2, and Mudon.

 

Residential real estate in Abu Dhabi

• In the second quarter of 2023, 13 new projects were launched in the Abu Dhabi market, 5 of which were presented by developer Aldar Properties;
• Since the beginning of the year, the market has been replenished with at least 16 projects;
• For 5 quarters, there has been a rise in property prices in Abu Dhabi, however, the first quarter of 2023 turned out to be the final one;
• The average budget in the primary housing market in the second quarter of 2023 was about 2.5 million AED (+7% compared to the second quarter of 2022 and -21% compared to the previous quarter);
• The average prices in the most in-demand areas, where foreigners are allowed to buy property and obtain ownership rights, range from 740 thousand AED in the Al Reef area to 2.9 million AED in Al Saadiyat Island;
• In the second quarter of 2023, 2.5 thousand residential properties were sold in Abu Dhabi (+54% compared to the second quarter of 2022);
• In total, in the first half of 2023, 5.2 thousand transactions were made, which is 58% higher than the figure for the first half of 2022, totaling 14.4 billion AED;
• In the past year, the demand structure has changed, and the share of new developments in the demand has increased from 58% to 68%.;

The total number of lots sold in the off-plan market in the first half of the year was 3,643, totaling 10.8 billion AED, which is 100% and 162% higher than the figures for the first half of 2022, respectively.

 

Residential Real Estate in Ras Al Khaimah

• Against the backdrop of the increasing number of transactions in the emirates, interest in the northern emirate of Ras Al Khaimah is also growing;
• More than 60% of transactions are made by domestic buyers, while approximately 40% involve foreign buyers;
• In total, there were 1,114 real estate transactions in the emirate in the first 5 months of 2023 (+24% compared to the same period in 2022), totaling 1.02 billion AED;
• The average budget for a sought-after apartment in the first 5 months of 2023 was 527,000 AED, which is 4 times lower than in Dubai;
• The average budget for a sought-after villa in the first 5 months of 2023 was 1.6 million AED, which is 2 times lower than in Dubai.