There is a greater demand for ready-to-move-in properties
In the first quarter of 2024, demand for ready properties increased in the United Arab Emirates as more tenants choose ownership over escalating rentals.
In contrast to the first quarter of 2023, when off-plan purchases skyrocketed, the first quarter of 2024 saw a strong demand for existing developments in both Dubai and Abu Dhabi, according to data supplied by Property Finder.
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Following the pandemic, rents have steadily increased over the last three years. Due to the extraordinary demand from the growing population, it is anticipated that this upward rental trend will continue in 2024 as well. Residents in the UAE are resorting to purchasing real estate in Dubai and Abu Dhabi due to rising rental rates.
It will result in residents paying less for rentals and seeing an increase in the value of their homes.
“A fascinating and promising phase of progress has begun in 2024. According to Property Finder’s chief revenue officer Cherif Sleiman, “we are optimistic about the impact this will have in the months to come. We can see a more diversified demand.”
Based on available data, the Dubai existing/ready market recorded about 19,600 transactions in the first quarter of 2024, upping its market share to 54% of all transactions from roughly 15,000 transactions in the same period the previous year, which accounted for 48% of all transactions. Comparing this result to Q1 2023, there was a noticeable 30% increase in volume.
Transaction values in Q1 2024 accounted for 68% of the total sales transaction value, reaching Dh78.2 billion, as opposed to 60% in Q1 2023. As a result, the current/ready transaction value increased significantly from Dh53.6 billion in Q1 2023 to Dh46.6%.
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The number of overall sales transactions in Q1 2024 increased significantly, according to data from the Dubai Land Department (DLD). With almost 36,000 transactions compared to 31,000 transactions in Q1 2023, the number of transactions recorded was the second-highest for the quarter ever, indicating a significant rise of 17%.
Comparing Q1 2023 to Q1 2023, there were approximately 16,600 off-plan sales transactions, or 46% of the overall transaction volume, as opposed to 52% of the total transactions in Q1 2023.
Compared to 628 transactions that accounted for 27% of all sales in Q1 2023, Abu Dhabi real estate registered 814 residential transactions in Q1 2024, or almost 38% of all transactions. This represented a noteworthy 30% increase from Q1 2023. Compared to 27% in Q1 2023, the existing/ready transaction value in Q1 2024 contributed Dh1.74 billion, or 29%, to the overall sales transaction value.
The number of home sales transactions reached a quarter around 2,145 transactions compared to 2,286 transactions in Q1 2023, which represents a modest reduction in overall sales transactions (including residential and commercial) for the Department of Municipalities and Transport (DMT), Abu Dhabi.
The off-plan market in the capital of the United Arab Emirates recorded about 1,331 sales transactions in Q1 2023 as opposed to 1,658 transactions in Q1 2023, which represents 62% of all transactions versus 73% of all transactions in Q1 2023. This represents a notable 20% decline in volume year over year.
Source: Khaleej Times