The Abu Dhabi real estate sector has witnessed a spike in existing property sales in the first three months of the year, according to Property Finder’s Market Watch digest report for Q1 2024.
Despite the growth of secondary sales, the residential market as seen a double-digit decline as off-plan sales fell in the opening three months of the year
Property Finder analysts identified fewer than 2,145 residential transactions in the first quarter of the year, a notable decrease on the previous year.
Abu Dhabi real estate data
Unlike Q1 2023 where off-plan transactions soared high, Q1 2024 has opened up to a strong demand for existing projects in Abu Dhabi.
Q1 2024 recorded 814 residential transactions representing around 38 per cent of the total transactions compared to 628 transactions that contributed to 27 per cent of the total transactions in Q1 2023.
This was a notable growth of 30 per cent from Q1 2023. By reaching AED1.74bn ($474m), the existing/ready transaction value in Q1 2024 contributed to 29 per cent of the total sales transactions value compared to 27 per cent in Q1 2023.
Off-plan properties continued to support evolution within the sector in Abu Dhabi, albeit with a few noteworthy fluctuations reshaping the market trajectory for 2024.
The off-plan market in Q1 2024 registered around 1,331 residential off-plan sales transactions compared to 1,658 transactions in Q1 2023 representing 62 per cent of the total transactions compared to 73 per cent of the total transactions in Q1 2023, recording a significant year-on-year decline of -20 per cent in terms of volume.
The off-plan sales transaction value in Q1 2024 reached AED4.28bn ($1.2bn) contributing to 71 per cent of the total sales transactions value.
There was a significant decrease of 20 per cent compared to Q1 2023 when the total off-plan sales transactions value was AED5.34bn ($1.5bn) contributing to 73 per cent of the total value.
With minor changes in transaction numbers and values, the current market in Abu Dhabi offers a fertile ground of opportunities for developers and brokers to leverage their existing expertise and redefine success in 2024.
According to data from the Department of Municipalities and Transport (DMT), Abu Dhabi experienced a slight decrease in total sales transactions (both residential and commercial) in Q1 2024.
The number of residential transactions reached for a quarter around 2,145, compared to 2,286 transactions in Q1 2023, reflecting a decrease of 6.2 per cent.
Residential transactions accounted for 78 per cent of the total volume and approximately 64 per cent of the overall value.
The residential transaction value amounted to AED6.02bn ($1.6bn), marking an 18 per cent decrease compared to AED7.34bn ($2bn) recorded in Q1 2023.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said: “2024 has opened up to an interesting and promising phase of growth within our sector.
“As proptech leaders, we can see a more diversified demand and we are positive of the impact this will have in the months to come.
“We look forward to supporting the market by empowering property seekers with all the information they need to make more informed decisions”.
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