Analytical review of the residential real estate market in the UAE

Residential real estate in Dubai

• Demand continues to show high indicators: 2023 was a record year for the number of transactions: 128 thousand lats, which is 32% higher than in 2022; 
• In 2023, more than 200 new projects were announced in the Dubai market for a total of 86.5 thousand lots (+50% compared to 2022);
• The average lot price in the segment of apartment complexes under construction amounted to 2.4 million AED, and the average cost of a villa in the primary market increased by 54% over the year and amounted to 3.4 million AED per lot;
• The cost of 1 sq. m. The number of apartments in the primary market increased by 6% over the year and amounted to 20.3 thousand AED, and the unit price of villas and townhouses increased by 17% over the year, amounting to 12.8 thousand. AED per 1 sq. m.; 
• The share of new buildings in demand is growing: 55% of the total number of transactions (70.2 thousand units);
• The most sought-after areas in the market of new buildings with apartments in 2023: Jumeirah Village Circle, Dubai Marina, Business Bay, Dubai Hills Estates, Arjan;
• The most sought-after areas in the primary market of villas and townhouses were mainly concentrated in the locations of Damac Lagoons, The Valley, Arabian Ranches III, Dubai South, Mudon projects.

Residential real estate in Abu Dhabi

• In 2023, more than 20 new projects entered the Abu Dhabi market; 
• The average budget in the primary housing market at the end of 2023 amounted to about 3.2 million AED (+8% by 2022); 
• The average budget of apartments in the primary market of Abu Dhabi was about 1.8 million AED (+28% by 2022), the average budget of villas, townhouses – 5.5 million AED (+62% by the same period in 2022);
• In total, 13.5 thousand transactions were made in 2023, which is 71% higher than in 2022) for a total of 43.2 billion AED;
• The record number of transactions remained in the 3rd quarter of 2023: 4.3 thousand transactions (32% of transactions for the year), which exceeded the figure of the 3rd quarter of 2022 by 132%;
• The growth in demand over the past year is associated with an increase in sales in the primary market and the release of a new offer. New rules on resident visas, including a 10-year golden visa, also had a positive impact on demand.;
• Over the past year, the structure of demand has changed, and the share of new buildings in demand has increased from 65% to 75%;
• The total amount of lots sold on the primary market (off-plan) in 2023 amounted to 10,118 transactions worth 35.4 billion AED, which is 99% and 173% higher, respectively, than in 2022

Residential real estate in Ras Al Khaimah

• The emirate's authorities are aimed at diversifying the economy, attracting investment, developing tourism and increasing the number of expats; 
• In the 2nd half of 2023, trays appeared on sale in several places: Dana Bay, Porto Playa, Cape Hyatt, Ellington Views 1, Nikki Beach and Aldar Rosso, Address;
• The average budget of a sought-after apartment at the end of 2023 amounted to 546 thousand AED, which is 4 times lower than in Dubai; 
• In total, 2,899 real estate transactions were concluded in the emirate in 2023 (+40% compared to the same period in 2022) for a total of 3.2 billion AED;
• The average budget of a sought-after villa at the end of 2023 was 1.8 million AED, which is 2.5 times lower than in Dubai
• The most popular areas of Ras Al Khaimah with buyers are Al Marjan, Hayat Island, Al Hamra.