Off-plan sales in Abu Dhabi surged 111% in Q2 to $490m

Wam

• Most deals within AED2m to AED3m range
• Highest villa sales on Al Reem Island and Yas Island
• 3,000 new properties due to be finished by end of 2023

The value of off-plan property deals in Abu Dhabi more than doubled to AED 3.8 billion ($490 million) in Q2 2023 from AED 1.8 billion in Q2 2022.

In a Q2 market overview report based on data from Quanta, the consultancy JLL said most of the deals were in the AED2 million to AED3 million range, with the highest villa sales reported on Al Reem Island and Yas Island.

The total residential stock in the UAE capital reached 283,000 units after adding 1,000 dwellings in the April to June period. 

• Foreign investment up 363% in Abu Dhabi real estate
• Abu Dhabi set to begin work on Hudayriyat mega project
• Banks and property lead Dubai bourse to eight-year high 

Close to 3,000 properties are slated to be delivered by the end of 2023, mainly comprising apartments within master-planned communities such as Al Raha Beach, Al Maryah Island and Al Reem Island.

Off-plan residential sales in neighbouring Dubai increased by 38 percent in value and 30 percent in volume in Q2 2023 year on year, it said, citing Dubai Pulse data. 

Almost 57 percent of the transactions were between AED500,000 and AED2 million, with investors primarily focusing on studios and one-bed units in communities such as Jumeirah Village Circle, Dubailand and MBR City.

7,300 units were delivered in Dubai, bringing the total number of units to 700,000. An additional 21,000 units are planned to be handed over in the remainder of the year.

Faraz Ahmed, research associate with JLL Mena, said that all sectors demonstrated strength and adaptability propelled by new and emerging trends. There was continued growth in off-plan transactions in the second quarter, indicating Dubai and Abu Dhabi as vibrant investment destinations.

“With strong investor confidence, robust absorption of new projects, and innovative developments, there is no doubt that these cities are paving the way for sustained growth and transformation across the entire real estate landscape in the UAE,” he added.