The real estate market in Abu Dhabi continues to exhibit growth and resilience as the Emirate experiences a dynamic property landscape. In May 2023, the market witnessed significant activity in both residential sales and rental sectors. This blog post provides an overview of the latest data, highlighting key trends and notable transactions that shaped the real estate landscape during the month.

Residential Sales Volume

May 2023 saw a total of 598 residential property transactions in Abu Dhabi, encompassing both ready and off-plan properties. Notably, the number of ready property transactions witnessed a substantial year-on-year increase of 54.6% and a month-on-month rise of 27%. On the other hand, off-plan property transactions grew by 36.5% compared to the previous year but experienced a decline of 32.7% compared to the previous month.

Total Value of Residential Transactions

The value of residential property transactions in May 2023 exceeded AED 1.4 billion, representing a year-on-year increase of 42.1%. However, the total value experienced a slight month-on-month decline of 15.7%. The data revealed that ready properties contributed over AED 536 million, which reflected a year-on-year growth of 31.7% and a month-on-month increase of 18.2%. The off-plan segment accounted for over AED 895 million, demonstrating a significant year-on-year growth of 49.2%, albeit with a month-on-month decrease of 28.1%.

Notable Transactions

Within the realm of luxury investments, the most expensive ready property transaction involved a 3,130 sq ft, 3-bedroom unit in Mamsha Al Saadiyat – Turquoise, which was sold for AED 13.5 million. Additionally, a 10,560 sq ft, 7-bedroom mansion in Hidd Al Saadiyat Phase 2 was sold for AED 19 million, showcasing the demand for high-end properties.

In the off-plan segment, the priciest apartment transaction featured a 2,152 sq ft, 4-bedroom flat in The Source Al Saadiyat Island, which was sold for AED 7.2 million. Furthermore, an 8,253 sq ft, 6-bedroom villa in Jubail Island Phase 3 was sold for AED 20.5 million, emphasizing the appeal of exclusive properties in Abu Dhabi.

Residential Rental Contracts

May 2023 also witnessed significant activity in the rental market. A total of 5,585 new rental contracts were signed during the month, with an average rental value of AED 63,000. Moreover, 6,328 lease renewals were recorded, reflecting an average rental value of AED 67,000. It is worth noting that the majority of lease payment terms ranged from 1-cheque to 4-cheque payments, indicating flexibility in rental payment options.

Conclusion

The real estate market in Abu Dhabi experienced robust growth in May 2023, as indicated by the substantial increase in residential sales volume and the total value of transactions. The market showcased a healthy demand for both ready and off-plan properties, with luxury investments dominating the high-end segment. Furthermore, the rental market demonstrated its resilience with a considerable number of new contracts and lease renewals. As the real estate landscape in Abu Dhabi continues to evolve, these trends offer valuable insights for investors, buyers, and renters seeking to navigate the market successfully.