Q1 2024 SEES STRONG PROPERTY SALE GROWTH IN DUBAI & ABU DHABI

Emirates Real Estate Sector Sees Impressive Growth in Ready Property Transactions

In the Emirates, the real estate sector has seen an impressive 30% rise in transactions for ready properties year-over-year, indicating a steady flow of available properties for the immediate and long-term markets.

Leap, the premier property portal in the MENA region, disclosed significant insights in its latest Market Watch digest for the first quarter of 2024. The report reveals an increase in transactions for ready properties in both Dubai and Abu Dhabi, demonstrating an upward trend in market dynamics from the previous year’s preference for off-plan properties.

Key Highlights

Shift to Ready Properties

The beginning of 2024 has seen a heightened demand for ready-to-move-in projects in both Dubai and Abu Dhabi, contrasting with the previous year’s focus on off-plan properties.

Abu Dhabi: Surge in Ready Property Sales

The first quarter of 2024 saw 814 residential sales for ready properties in Abu Dhabi, making up 38% of all transactions, a 30% increase from the 628 transactions in the same quarter of 2023. These transactions reached a value of AED 1.74 billion, accounting for 29% of the total sales, up from 27% the previous year.

Dubai: Significant Increase in Ready Property Transactions

Dubai experienced nearly 19,600 transactions for ready properties, capturing 54% of the market, up from 15,000 transactions or 48% the previous year. The transaction value grew to AED 78.200 billion, representing 68% of the sales value – a significant 46% increase from AED 53.6 billion in Q1 2023.

Off-Plan Market Adjustments

Recalibration in Market Focus

While continuing to play a central role in the sector’s evolution, the off-plan market in both Emirates faced notable shifts, indicating a recalibration of market focus in 2024.

Abu Dhabi: Decline in Off-Plan Transactions

The off-plan segment in Abu Dhabi registered 1,331 transactions, a 20% decrease from the previous year, yet contributed 71% to the total sales value, highlighting a shift in market preference.

Dubai: Subtle Increase in Off-Plan Deals

Dubai recorded a slight 4% increase in off-plan transactions, with about 16,600 deals, illustrating the market’s subtle yet ongoing adjustments.

Opportunities for Developers

Capitalizing on Current Trends

Small changes in transaction numbers and values mean that Dubai and Abu Dhabi open new avenues for developers and brokers to capitalize on current trends, suggesting a promising future for the sector in 2024.

Market Potential and Growth

According to the Department of Municipalities and Transport in Abu Dhabi and the Dubai Land Department, the fluctuating transaction numbers offer a glimpse into the market’s potential for growth and diversification. Cherif Sleiman, Chief Revenue Officer at Leap, emphasized the promising growth phase of 2024, highlighting the company’s commitment to enhancing market transparency and aiding property seekers in making well-informed decisions.