The report indicates that residential transactions in Dubai reached a historical high of 118,993 units, representing a 29.6% year-on-year increase. Growth in off-plan sales and secondary market transactions drove this achievement. Sales growth in the off-plan market contributed to the overall increase in transaction volume, while activity in the secondary market also had a positive impact.
In terms of property prices, Dubai's performance was equally impressive. As of December 2023, the average apartment prices in Dubai rose by 20.1%, while apartment and villa prices increased by 19.8% and 21.8%, respectively. This demonstrates sustained demand and investment enthusiasm in the market.
However, despite rising demand, the report also mentioned a slight slowdown in rental growth rates. As of December 2023, the average residential rents in Dubai increased by 18.9%, slightly lower than the 19.2% growth rate in November. This indicates that the rental growth trend is stabilizing but remains positive.
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In addition to the residential market, Dubai's industrial and logistics sectors also showed strong development momentum. The report highlights increasing demand for large customized warehouse space as non-oil industries expand. Companies from industries such as fast-moving consumer goods, third-party logistics, retail, and e-commerce continue to demonstrate strong demand for warehouse space, underscoring the market's vitality and attractiveness.
Turning to Abu Dhabi, the report shows that the residential transactions in the region also achieved remarkable growth. In 2023, residential transactions in Abu Dhabi increased by 77.8% year-on-year, reaching 11,235 units.
Of these, off-plan sales increased by 104%, while secondary transactions increased by 27.7%. Additionally, rents for apartments and villas in Abu Dhabi also increased, with average annual rents projected to reach AED 64,996 and AED 163,098 for apartments and villas, respectively, by the end of 2024. Furthermore, the real estate market in the region showed vitality in terms of supply. It is expected that Abu Dhabi will add 4,438 new apartments by 2024, with 69.1% expected to be delivered on Yas Island and Al Maryah Island.
