Demand for ready properties rises as more renters become homeowners
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At the beginning of 2024, there was high demand for existing projects in both Dubai and Abu Dhabi, unlike the same period in 2023.
In the United Arab Emirates, the first quarter of 2024 saw a surge in demand for ready properties as tenants sought ownership to avoid rising rents.
Property Finder The data reveals that unlike the first quarter of 2023, where off-plan transactions prevailed, there was substantial demand for existing projects in both Dubai and Abu Dhabi.
Over the past three years since the pandemic, rents in the UAE have risen steadily. This upward trend is expected to persist into 2024 due to unprecedented demand driven by population growth. Rising rental costs have led UAE residents to consider purchasing properties in Dubai and Abu Dhabi. This change not only allows residents to save on rental costs, but also allows them to benefit from appreciation in property values.
“2024 has ushered in an intriguing and promising growth phase,”
fixed Cherif Sleiman, Chief Revenue Officer at Property Finder.
The data reveals that in the first quarter of 2024, the existing/ready property market in Dubai recorded almost 19,600 transactions, representing a share of 54% of the total transactions. This is a notable increase from around 15,000 transactions, which accounted for 48% of total transactions in the first quarter of 2023. This performance reflects a substantial volume growth of 30% compared to the first quarter of 2023.
With transaction values reaching Dh78.2 billion in the first quarter of 2024, existing sales contributed to 68% of the total transaction value, compared to 60% in the first quarter of 2023. Consequently, the value of existing/ready transactions saw a significant increase of 46% from Dh53.6. billion in the first quarter of 2023.
Data of the Dubai Land Department (DLD) revealed a notable increase in total sales transactions in the first quarter of 2024. The number of transactions recorded was the second highest ever recorded for the quarter, totaling more than 36,000 transactions, up from 31,000 transactions in the first quarter of 2023, reflecting a substantial increase of 17 percent.
Among these transactions, approximately 16,600 were off-plan sales, compared to 16,000 transactions in the first quarter of 2023. Off-plan sales accounted for 46 percent of total transaction volume, a decrease from 52 percent recorded in the first quarter of 2023.
814 transactions in Abu Dhabi
In the first quarter of 2024, Abu Dhabi’s real estate sector recorded 814 residential transactions, which constituted around 38 percent of total transactions, a notable increase from 628 transactions, which accounted for 27 percent of total transactions in the first quarter of 2023. This represented a significant growth of 30 percent compared to the first quarter of 2023. The value of existing/ready transactions in the first quarter of 2024 reached Dh1.74 billion, contributing to the 29 percent of the total value of sales transactions, up from 27 percent in the first quarter of 2023.
He Department of Municipalities and Transportation (DMT) A slight decrease in total sales transactions (both residential and commercial) was observed in Abu Dhabi, with a total of around 2,145 residential transactions compared to 2,286 transactions in the first quarter of 2023.
In Abu Dhabi, the off-plan market witnessed approximately 1,331 sales transactions compared to 1,658 transactions in the first quarter of 2023, accounting for 62 percent of the total transactions, up from 73 percent in the first quarter of 2023. 2023. This marked a significant year-on-year decline of 20 percent in terms of volume.
News Source: Khaleej Times
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