Credit By: Economy Middle East
The United Arab Emirates (UAE) has set new benchmarks in the real estate sector, showcasing remarkable achievements that position the country as a global leader in real estate and construction markets. The year 2023 has witnessed an array of milestones, affirming the robust performance of the UAE real estate sector.
Residential Transactions Surge in Abu Dhabi
Official data reveals an outstanding growth of 56 percent in the value of residential transactions in Abu Dhabi, reaching an impressive AED67.8 billion (approximately $18.5 billion) in the first nine months of the year. This surge underscores the resilience and vitality of the real estate market in the capital city. Notably, sales prices experienced a notable uptick, accelerating by 3.9 percent year-on-year in October.
Dubai’s Exponential Growth
The real estate landscape in Dubai has also witnessed substantial progress, with the value of transactions soaring by 37 percent annually during the first ten months of 2023, surpassing AED500 billion ($136.2 billion). The number of transactions executed during the first three quarters increased by 36 percent annually, totaling over 116 thousand, according to the Emirates News Agency.
Abu Dhabi’s Strong Sales Performance
Abu Dhabi, a key player in the real estate arena, achieved property sales amounting to AED50 billion since the beginning of the year, translating to sales of over 14,000 real estate units. Simultaneously, Dubai recorded approximately AED400 billion in real estate sales during the same period, affirming its robust standing in the market.
Sharjah’s Emergence as a Real Estate Hub
Sharjah has emerged as a pivotal player in the real estate market, attracting both Arab and foreign investors due to its safe and appealing investment environment. The Emirate has positioned itself as a preferred destination for business, evident in its real estate sales reaching about AED13.4 billion in the first half of 2023. Additionally, Sharjah recorded a value of real estate transactions amounting to AED7.2 billion in October and November 2023, reinforcing its commitment to fostering a conducive investment climate.
Future Outlook: ‘We the UAE 2031’
GlobalData, a reputable British consulting and data analysis company, forecasts the continued strength of the UAE real estate sector. Anticipating a growth rate of 3.3 percent in 2023 and 4 percent in 2024, the sector’s momentum is driven by substantial public and private investments. Sharjah, in particular, is actively engaged in major development projects spanning the transportation, energy, tourism, and housing sectors.
Construction Sector Growth on the Horizon
GlobalData’s projections extend to the construction sector, expecting annual growth of 3.9 percent from 2025 to 2027. This growth trajectory is underpinned by significant investments in infrastructure, renewable energy, housing, industrial, and tourism projects. Aligned with the ‘We the UAE 2031’ vision, the government aims to double the UAE’s GDP from AED1.5 trillion in 2022 to AED3 trillion by 2031. Implementing a series of development and economic projects is set to fortify support for the real estate sector further, propelling the nation toward unprecedented economic heights.
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