In June 2023, the real estate market in Abu Dhabi experienced a significant increase in sales and transactions. The city saw a surge in demand for residential and commercial properties, leading to a rise in property prices. This upward trend can be attributed to the growing population, economic stability, and government initiatives to attract foreign investors. Overall, the real estate sector in Abu Dhabi is thriving, offering lucrative opportunities for both buyers and sellers.

Total Sales and Transactions

Through June, Abu Dhabi saw 1,132 real estate transactions, with a year-on-year increase of 88.7% and 37.9% compared to the previous month. The ready sales stood at 341, a 1.4% year-on-year decline and a month-on-month increase of 5.3%. On the other hand, the off-plan sales achieved a total of 791, growing by 56% year-on-year and 28.6% compared to the previous month. 

Most transacted areas and top developer sales

The areas that saw the most transactions in June were Al-Reem Island (35.8%), Al-Saadiyat Island (16.5%), Yas Island (13.2%), Al Shamkhah (8.2%) and Khalifa City (4.3%). Most sales by developers were taken by Aldar Properties with 434 (38.4%), Reem Hills at 320 (28.3%), Jubail Island Investments with 46, and Bloom District Properties with 28, sharing 4.1% and 2.5%, respectively.

The total value of transactions exceeded AED 3.4 billion, which saw a substantial 63.5% YoY increase and jumped 86.2% MoM. The total value of transactions exceeded AED 3.4 billion, which saw a significant 63.5% YoY increase and jumped over 86.2% MoM.

Additionally, the total ready sales value increased 39.6% year-on-year and grew by 39.1% compared to the previous month. This increase amounted to more than AED 1.2 billion. At the same time, off-plan transactions accumulated over AED 2.2 billion, increasing by 80.1% year-on-year and advancing month-on-month by 127.7%.

Residential Sales and Transactions

The overall residential sales volume stood at 984 transactions. This amount comprised 238 ready sales, decreasing 1.7% and 2.1% year-on-year and month-on-month, respectively. Off-plan sales, however, achieved 741 sales, thus growing by 51.6% year-on-year and 28.6% compared to the previous month.

Overall, the total value of residential transactions reached over AED 2.4 billion, rising by 8.7% YoY and 21.1% MoM. More than AED 500 million were ready properties of this amount, shrinking 8.7% YoY and 9.8% MoM. By contrast, off-plan deals amounted to AED 1.9 billion, thus leaping by 66.5% YoY and rising by 33% more than the previous month.

The most expensive properties

The most expensive ready apartment was a 2,250 sq. ft. 2-bedroom unit in Mamsha Al Saadiyat – Turquoise sold for AED 8.5 million. The most costly villa was an 8,629-square-foot, 6-bedroom mansion in Hidd Al Saadiyat Phase 2, sold for AED 22 million.

On the off-plan segment, the most expensive apartment, a 2,718-square-foot 3-bedroom flat in The Source Al Saadiyat Island, was sold at AED 8.9 million. Likewise, the priciest villa was a Reem Hills Phase 2A mansion, sold for AED 15.3 million.

Overall, the Residential rental contracts signed during the month consisted of 5,983 new, with an average rent value of AED 60,000​, and 8,100 renewals, with an average rent value of AED 57,000. Most lease payment terms were between 1-cheque (33%) and 4-cheque (36%) payments​.

Conclusion

In summary, we can see that the real estate market witnessed notable activity in June. The surge in demand for off-plan residential and commercial properties can be seen evidently, while ready property sales also thrived. Additionally, the rental market showed steady growth, with many new contracts being signed. The preference for multiple cheque payment terms indicates a flexible approach to leasing agreements.