Growing demand for ready properties in Dubai, Abu Dhabi in 2024, new survey
2024 has opened up to an interesting and promising phase of growth within property sector in UAE
Dubai: More buyers focused on ready properties in the first quarter of 2024 unlike the corresponding period in 2023 when off-plan property transactions had soared high.
Property Finder – one of the leading property portals in the MENA region has revealed this in its key data from its Market Watch digest report for Q1 2024. While Abu Dhabi recorded spikes in ready transactions, Dubai sustained a growing interest for both - existing and off-plan properties.
Significant trends
Q1, 2024 has opened up to a strong demand for existing projects across both Dubai and Abu Dhabi.
During Q1, 2024, Abu Dhabi recorded 814 residential transactions representing around 38% of the total transactions compared to 628 transactions that contributed to 27% of the total transactions in Q1 2023. This was a notable growth of 30% from Q1 2023.
By reaching Dh1.74 billion, the existing/ready transaction value in Q1 2024 contributed to 29% of the total sales transactions value compared to 27% in Q1 2023.
In Dubai, the existing/ready market registered almost 19,600 transactions in Q1 2024, increasing its market share to 54% of the total transactions compared to around 15,000 transactions, which contributed 48% of the total transactions in Q1 2023.
This performance witnessed a notable volume growth of 30% compared to Q1 2023. By reaching Dh78.200 billion, transaction values in Q1 2024 contributed to 68% of the existing sales transaction value, compared to 60% in Q1 2023. Consequently, the existing/ready transaction value witnessed a significant increase of 46% compared to Dh53,600 billion in Q1 2023.
Moderate fluctuations in the off-plan sector
Off-plan properties continued to support evolution within the sector across both Emirates, albeit with a few noteworthy fluctuations reshaping the market trajectory for 2024.
In Abu Dhabi, the off-plan market in Q1 2024 the market registered around 1,331 residential off-plan sales transactions compared to 1,658 transactions in Q1 2023 representing 62% of the total transactions compared to 73% of the total transactions in Q1 2023, recording a significant year-on-year decline of -20% in terms of volume.
The off-plan sales transaction value in Q1 2024 reached Dh4.28 billion contributing to 71% of the total sales transactions value. There was a significant decrease of -20% compared to Q1 2023 when the total off-plan sales transactions value was AED 5.34 billion contributing to 73% of the total value.
In Dubai, there were around 16,600 off-plan sales transactions compared to 16,000 transactions in Q1 2023, representing 46% of the total transaction volume compared to 52% of the total transactions in Q1 2023.
Consequently, the off-plan transactions recorded a slight increase year-on-year surge of 4% in terms of volume. The off-plan sales transaction value in Q1 2024 reached Dh37.4 billion, contributing 32% of the total sales transaction value, recording a 5% increase compared to Q1 2023, when the total sales transaction value was Dh35.5 billion, contributing 40% of the total value.
New scope for developers
With minor changes in transaction numbers and values, the current market in Dubai and Abu Dhabi offers a fertile ground of opportunities for developers and brokers to leverage their existing expertise and redefine success in 2024.
According to data from the Department of Municipalities and Transport (DMT), Abu Dhabi experienced a slight decrease in total sales transactions (both residential and commercial) in Q1 2024.
The number of residential transactions reached for a quarter around 2,145 transactions compared to 2,286 transactions in Q1 2023, reflecting a decrease of -6.2%. Residential transactions accounted for 78% of the total volume and approximately 64% of the overall value. The residential transaction value amounted to Dh6.02 billion, marking a -18% decrease compared to Dh7.34 billion recorded in Q1 2023.
Dubai sales
Data from the Dubai Land Department (DLD) showed a significant surge in total sales transactions in Q1 2024. The number of transactions recorded was the second highest transaction for the quarter ever recorded, with more than 36,000 transactions compared to 31,000 transactions in Q1 2023, reflecting a substantial increase of 17%.
Diversified demand
“2024 has opened up to an interesting and promising phase of growth within our sector. As proptech leaders, we can see a more diversified demand and we are positive of the impact this will have in the months to come. We look forward to supporting the market by empowering property seekers with all the information they need to make more informed decisions,” said Cherif Sleiman, Chief Revenue Officer, Property Finder.