Abu Dhabi, Dubai property market upbeat on both demand and supply side

Abu Dhabi, Dubai property market upbeat on both demand and supply side

During Q1 2023, the rental rate growth for apartments, villas and offices in Abu Dhabi, Al Ain, and Sharjah showed a more moderate trend in annual growth, while the rental rates in Dubai continued to rise significantly. As such, villa rental rates in Dubai have surpassed the previous market peak from Q2 2014 by an impressive 3 per cent. When it comes to sales prices, Dubai experienced double-digit growth, while Abu Dhabi saw minimal changes. Interestingly, off-plan sales in both Dubai and Abu Dhabi commanded substantial premiums over completed properties. Although it may be challenging to reconcile this premium, given the immediate rental returns or occupation offered by completed properties, it highlights the strong demand for off-plan purchases. Furthermore, it’s important to note that sales prices in Abu Dhabi still offer considerable competitive pricing to similar properties in Dubai. This means that Abu Dhabi represents exceptional value for buyers in the market. Overall, these market dynamics showcase the positive trends and opportunities available in the real estate sector. Abu Dhabi’s development pipeline shows no signs of slowing down throughout the rest of 2023. Despite the fact that several new projects are currently in the planning and design stage and anticipated