Residential and office markets in the UAE is progressing due to business reforms and government initiatives such as the Golden Visa, a rebound in global travel, increased tourism and retail activity from FIFA World Cup Qatar 2022, according to a report by Asteco.
Abu Dhabi residential and office market
The Abu Dhabi market recorded delivery of over 1,000 apartments in the third quarter of this year across Al Raha Beach, Reem Island, Yas Island and Saadiyat Island communities.
Several projects were launched within the last six months including Al Jubail Island – Ain Maha Village which has over 240 villas. Yas Park Gate was also launched with over 500 residential units to be available upon completion.
Villas and townhouses faced strong levels of demand, on an average villa rental rates increased by two percent while prime villa community rents increased by four percent over the quarter.
Residential sales markets saw high demands for new off-plan villa projects and completed projects.
Most villa communities faced a notable demand increase over the last few months.
Dubai residential and office market
In the third quarter over 6,000 apartments were delivered while villa supplies increased significantly, in the first half of 2022, 800 units were handed over as compared to the last three months where 2000 properties were added.
The majority of the new villa deliveries were concentrated in upcoming developments such as DAMAC Hills and Dubai South.
Average apartment and villa rents continued to increase in 2023 with quarterly increases of four percent and five percent respectively.
Annual villa rent growth rate grew substantially at 22 percent while average apartment rents rose by 15 percent, rents are expected to rise into 2023, however oversupply is a concern, according to the report.
Al Ain and Northern Emirates market
Apartment and rental rates rose over the last three months with average quarterly increases of three percent.
Average apartment sales price in Sharjah increased by three percent over the quarter, according to Sharjah Real Estate Registration Directorate (SRERD) the Sharjah real estate sector recorded a 23 percent property growth in transactions during the third quarter, registering 16,781 transactions worth AED5.7 billion due to increased demand.
Al Ain recorded no quarterly or annual movement, villa rates declined marginally by one percent.
Follow us on
