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In the United Arab Emirates, real estate transaction statistics for January to May 2023 show a very marked increase compared to the same period in 2022. This applies to both the established, stable market of real estate in Dubai and the rapidly developing Abu Dhabi market.
Content:
- Dubai results
- Abu Dhabi market results
- Mortgage transactions in Dubai
- Mortgage transactions in Abu Dhabi
- New builds and off-plan projects in Dubai and Abu Dhabi
- A brief overview of other emirates
Dubai results
As usual, Dubai has been and remains the leader in real estate sales in the United Arab Emirates. According to preliminary data, 50,705 real estate transactions were made here from January to May 2023. This is 80.5% higher than the figure for the same period in 2022, which saw 28,089 transactions. The total value of transactions amounted to AED 149.4 billion (USD 40.68 billion) — this is 84.2% higher than the corresponding figure for January to May 2022, which reached AED 81.1 billion (USD 22.08 billion).
A total of 11,757 transactions were registered in May. Compared to May 2022, this is an increase of 76.7% from 6,651. The total value of transactions in May 2023 amounted to AED 34.2 billion (USD 9.31 billion). This is 87% higher than the figure for May 2022, which was AED 18.3 billion (USD 4.98 billion).
These are the most popular neighbourhoods for buying property in the emirate in May:
- Dubai Marina – 1,245 transactions
- Jumeirah Village Circle – 1,189 transactions
- Business Bay – 665 transactions
- Downtown Dubai – 530 transactions
- Al Barsha South Third – 444 transactions
All of these neighbourhoods are freehold areas, allowing foreigners to have full ownership of purchased property. This indicates a large influx of overseas investment into Dubai real estate, which continues for a second year in a row.
The above-mentioned data has been calculated by the Dubai Land Department (DLD). It is important to note that these are not the final figures for the first half of the year. Analysts have yet to summarise exact results, which most likely will happen around mid-June. However, we already see significant growth compared to the same period last year.
Analysts also note that of all real estate transactions in Dubai in Q1 2023, about 15,000 transactions were for secondary properties. This is 26.23% higher than the corresponding figure for 2022.
Abu Dhabi market results
The second largest real estate market in the UAE is the capital emirate of Abu Dhabi. Unfortunately, in Abu Dhabi, statistical data are calculated noticeably slower than in Dubai. As of early–mid May 2023, the Department of Municipalities and Transport (DMT) only provided data for Q1 2023. According to them, the Abu Dhabi real estate market is also showing rapid growth.
Over Q1 2023, 5,472 real estate transactions were made in Abu Dhabi, which is 66% higher than in Q1 2022, which saw 3,304 transactions. The total value of transactions amounted to AED 27.9 billion (USD 7.6 billion), a 147% increase compared to Q1 2022, when the total value was AED 11.3 billion (USD 3.1 billion).
Mortgage transactions in Dubai
According to the DLD, from January to May 2023, 14,185 mortgage transactions totalling AED 53.1 billion (USD 14.46 billion) were registered in Dubai.
According to statistics, out of all real estate transactions recorded in May, 2,872 are mortgage transactions. This is 71% higher than in May 2022. The total value of mortgage transactions is AED 10.6 billion (USD 2.89 billion), a 43.4% increase compared to May 2022.
Analysts note that the growing popularity of mortgages in Dubai may be due to the high cost of rent in the emirate’s popular neighbourhoods. As a result, former tenants opt for taking out a mortgage instead of renting since mortgage payments have become comparable to rent payments.
Mortgage transactions in Abu Dhabi
According to the DMT, in Q1 2023, the number of mortgage transactions increased significantly compared to 2022. From January to March, 1,954 mortgage transactions were registered, which is 23.5% higher than a year earlier, when this figure was 1,582. The total value of transactions is AED 11.7 billion (USD 3.19 billion), a 69.5% increase compared to the same period in 2022, when the total value was AED 6.9 billion (USD 1.88 billion).
Such a significant increase in the total value of transactions may be due to heightened demand for luxury villas. Analysts note that according to the 2022 statistics, it is villas, not apartments, that are the most popular property type in the emirate.
New builds and off-plan projects in Dubai and Abu Dhabi
According to the DLD, between January and May 2023, there were 27,956 off-plan real estate transactions recorded in Dubai. The total value of transactions amounted to AED 68.5 billion (USD 18.65 billion).
Over the same period, 22,749 new-build transactions worth a total of AED 80.9 billion (USD 22.03 billion) were made.
In Abu Dhabi, according to the DMT, the figures are as follows. In Q1, 1,345 off-plan real estate transactions were made, which is 88.6% higher than in Q1 2022, when this figure was 713.
The total share of off-plan real estate transactions in Abu Dhabi in Q1 reached 66.4%. For comparison, in Q1 2022, this share was 51.6%.
A brief overview of other emirates
The real estate markets of other emirates are not as developed as in Dubai and Abu Dhabi. However, in recent years, some of them have also been opening up to overseas real estate investment. The most striking examples are the main resort emirate of Ras Al Khaimah and the rather conservative emirate of Sharjah. Unfortunately, the local real estate markets do not have a large number of analysts, as well as detailed statistics. Therefore, the data on these two emirates are very limited.
According to the Ras Al Khaimah Statistics Center, Q1 2023 saw real estate transactions totalling AED 1.02 billion (USD 277 million). This is 12% lower than in Q1 2022, when total transactions were worth AED 1.17 billion (USD 318 million).
In Sharjah, the situation is different. According to the Sharjah Real Estate Registration Department, there were 21,486 real estate transactions in Q1 2023, which is 0.6% lower than Q1 2022. The total value of transactions amounted to AED 5.9 billion (USD 1.61 billion), a 6.3% decrease compared to the same period in 2022, when this figure was AED 6.43 billion (USD 1.72 billion). It is worth noting that out of AED 5.9 billion, about AED 1.7 billion (USD 460 million) was accounted for by mortgage transactions.
