As we progress through the year’s second half, the real estate landscape in Abu Dhabi’s property market continues to flourish. The market had vigorous activity in both the home sales and rental sectors in July 2023. This blog article covers, in a nutshell, the most recent statistics, highlighting significant trends and transactions that influenced the real estate environment during the month. 

Total Sales and Transactions 

In July 2023, the Abu Dhabi real estate market saw a total of 1,123 sales transactions. The data indicates a significant year-on-year growth of about 87.2%, while there was a slight decrease of 11.2% when comparing month-on-month figures. The completed sales transactions amounted to 361, reflecting a year-on-year growth rate of 39.4% and a month-over-month rise of 4.6%. The number of off-plan sales had a significant increase of 123.5% compared to the previous year, resulting in 762 transactions. However, there was a fall of 17.2% in off-plan sales compared to the last month. 

The total value of transactions reached a sum of AED 4.4 billion, exhibiting a substantial surge of 147% compared to the previous year and a notable growth of 21.4% compared to the previous month. Interestingly, the overall value of completed sales transactions in July amounted to AED 1.02 billion, reflecting a year-on-year growth of 47%. In the interim, sales of off-plan properties significantly increased, with a total value of AED 3.4 billion, representing a year-on-year growth of 210% and a month-on-month growth of around 39.7%. 

Most transacted areas 

The areas that had the highest number of transactions were Al-Jubail Island, which recorded over AED 2.1 billion from 282 transactions; Al-Reem Island, which generated over AED 0.43 billion from 207 transactions; and Al-Shamkhah, with AED 0.25 billion from 161 transactions. 

Top developer sales 

Aldar is the top-performing developer in sales, followed by Jubail Island Investments with 282, Reem Hills and Manazel with 118 and 37 sales deals, respectively. 

Residential Sales and Transactions 

Residential sales totaled 810 in July, representing a 52% increase over the previous year. The number of ready sales was 254, up 30.9% year-on-year and 5% month-on-month. Similarly, off-plan purchases increased by 64% year-on-year to reach 556.  

The total value of residential transactions stood at AED 2.52 billion, jumping by 56.8% YoY. The value of ready sales achieved a total of AED 0.5 billion, with a YoY increase of 9.1% and a MoM increase of 13.4%. The off-plan sales saw a total value of AED 1.9 billion, up by 80.2%, although it went down by 8.2% compared to last month. 

Most expensive properties 

The most expensive ready apartment, a 4-bedroom unit in Mamsha Al-Saadiyat, was valued at AED 24 million, while the most costly ready villa, a 7+ bedroom mansion in Saadiyat Beach District, reached a value of AED 27.3 million. Similarly, the most expensive off-plan apartment was a 3-bedroom unit in The Source valued at 7.3 million. However, the most expensive off-plan villa was sold on Rahman Island for approximately AED 27.9 million. 

Leases and renewals 

July 2023 saw 5,955 new lease contracts and 9,994 renewals, achieving an average of AED 60,000. Most lease payment terms were between 1-cheque, with a percentage of 31.2%, and 4-cheque, with a rate of 33.5%.  

Conclusion 

A significant increase in residential sales volume and total transaction value in July 2023 demonstrated how well the Abu Dhabi real estate market performed. The market has shown robust demand for both ready and off-plan houses. Furthermore, the rental sector exhibited its durability with many new contracts and lease renewals. As the real estate landscape in Abu Dhabi evolves, these patterns provide vital information for investors, buyers, and tenants looking to navigate the market effectively.