Despite increased global headwinds, activity levels across the UAE's real estate sector continued to record strong performance in the third quarter.

According to the data, average real estate prices in Abu Dhabi increased by 3.2% in the year to September 2022, with average apartment prices increasing by 3.3% and average villa prices increasing by 2.7%.

Rents in the residential market in the capital decreased by an average of 0.5% in the year ending September 2022, with apartment rents increasing by 0.3% and villa rents increasing by 1.2%.

In the third quarter of 2022, Abu Dhabi's transaction figures increased by 37.5% compared to the previous year.

In the quarterly review of the real estate market, 3,164 new units were completed and delivered in Abu Dhabi in the year to September 2022, with a further 5,516 units expected to be delivered this year.

In Dubai, average property prices increased by 8.9% in the year to September 2022, with average apartment prices increasing by 8.0% and average villa prices increasing by 14.3%.

In the market review, during the same period, average rents recorded the highest growth rate ever, with average rents in Dubai increasing by 26.6%, with average rents for apartments and villas increasing by 26.7% and 25.5% respectively.

The real estate market in the UAE is growing and will remain strong.

The weakening global macroeconomic conditions have affected economic activity in the UAE. However, the fiscal position of the UAE, the easing of business and residential regulations during the year and the safe-haven status are expected to dampen the magnitude of the impact.

As a result, real estate activity and performance in the UAE is expected to remain fairly resilient going forward, given the fundamentals that underpin the market.

To date, 20,847 new units have been completed and delivered in Dubai in 2022.

A further 33,756 units under construction are expected to be completed by the end of this year, however, we expect that some of these completions may be pushed to 2023.

The total number of transactions in the Dubai residential market reached 8,020 in September 2022, an increase of 47% from a year ago.

In the year to September 2022, total transactions reached the highest level since 2009 with a total of 63,143 transactions, which represents an increase of 56.2%.

Looking ahead, price growth is expected to continue to slow, on average. However, we expect the gold community to continue to outperform the broader market in terms of price performance.