The Central Bank of the UAE (CBUAE) has said that despite continued global uncertainty and tight monetary stances around the world, the UAE real estate sector continued its good performance in the period from July to October 2023.
He central bank, in its 2023 quarterly economic review, explained that in the first nine months of 2023, the value of residential transactions in Abu Dhabi increased by 56 percent year-on-year (YoY) to AED 67.8 billion. According to REIDIN, the average sales price of residential properties in Abu Dhabi recorded an increase of 3.2 percent in the third quarter of 2023 compared to the same period last year.
In October 2023, sales price growth accelerated to 3.9 percent year-on-year. Average rent continued its upward trend, marking a year-on-year increase of 0.8 percent and 2.6 percent in the third quarter and October 2023, respectively, after a 0.5 percent year-on-year increase in the second quarter of 2023. This resulted in an average rental yield of 6.2 percent in the third quarter. 2023, virtually unchanged compared to 6.3 percent in October.
Furthermore, the report indicates based on Dubai Land Department (DLD) During the first 10 months of the year, the value of real estate transactions in Dubai increased by 37 percent year-on-year, exceeding AED 500 billion. The volume of real estate transactions carried out in the first three quarters of the year increased 36 percent year-on-year, representing more than 116,000 transactions.
The number of new investors in the Dubai real estate market increased by 15 percent year-on-year in the first three quarters of 2023, compared to that of 2022. The average sales price of residential properties in Dubai increased by an average of 0.3 percent percent year-on-year in the third quarter of 2023. Median rent increased 12 percent year-on-year in the third quarter of 2023, slowing to 5.7 percent year-on-year in October. This resulted in an average rental yield of 8.8 percent in the third quarter of 2023, virtually unchanged from the 8.7 percent recorded in October.
Regarding tourism and hospitality, the report mentions that the United Arab Emirates has started the National Tourism Strategy 2031part of “Projects from the 50s” with the aim of establishing itself as one of the leading global tourism destinations by 2031. The plan aims to increase the tourism sector’s contribution to GDP by AED 450 billion, in addition to attracting investments worth AED 100 billion and host 40 million hotel guests annually by 2031.
In the first eight months of 2023, Abu Dhabi’s hospitality sector performed well. The hotel’s total number of guests increased to 3.2 million, an increase of 31 percent compared to the previous year. Hotel occupancy rates were 70 percent, with guests staying an average of 2.6 nights.
thand CBUAE The report stated that data for the first three quarters of 2023 indicates that Dubai remains a prominent hub for global tourism. Hotel occupancy increased to 75.7 percent, an increase of 4.9 percentage points compared to the same period in 2022 and surpassed 2019 figures by 2.3 percentage points. Although the average stay per guest decreased from 4 to 3.7 nights, the total number of occupied room nights saw a 13 percent year-over-year increase in 2023 and 32 percent growth over 2019, reaching 30.4 million of nights.
The report further indicated that Abu Dhabi International Airport saw a substantial increase in passenger traffic, reaching almost 6 million passengers in the third quarter of 2023, up 29.3 percent year-on-year. The airport also recorded 37,903 aircraft movements in the third quarter of 2023, an increase of 21.8 percent compared to the third quarter of 2022. In addition, Abu Dhabi’s global reach has expanded significantly, with 119 destinations now accessible via 24 airlines from the airport. In the third quarter of 2023, the most frequented routes were to London, Mumbai and Kochi. Additionally, Terminal A at Abu Dhabi International Airport opened in November 2023 and is expected to significantly increase the airport’s overall capacity.
Dubai Airports has updated its forecast for 2023 and is now expecting 86.8 million passengers, an increase from the 85 million previously forecast. This review indicates that Dubai International Airport is on track to exceed its pre-pandemic passenger traffic of 86.3 million in 2019. In the first three quarters of the year, the airport handled 64.5 million passengers, with about a notable 22.9 million recorded in the third quarter, coinciding with peak summer travel. This represents an increase of 39.3 percent from the same period in 2022 and is 1 percent more than in 2019.
News source: Emirates News Agency