According to a recent CBRE analysis, demand for off-plan residential real estate in Abu Dhabi has increased, but Dubai’s rental market appears to be slowing down.
According to the real estate consultant, off-plan home sales in the UAE capital increased by 101.6% in the third quarter of the year, surpassing the growth of 46% in secondary market sales.
The emirate’s overall volume of residential transactions increased by 84.3% in the third quarter of last year due to the high demand for off-plan units. Off-plan transactions surged by 135.5% in Q3 2023 compared to a mere 22.7% increase in secondary market deals during the same period last year.
A number of residential projects have lately been launched in the capital of the United Arab Emirates; several developers have reported selling out of their off-plan complexes.
In general, the third quarter of the year saw solid demand in the UAE’s residential market, while Dubai is beginning to exhibit some deceleration.
Slowdown in Dubai
In the year ending in September 2023, average residential rentals in Dubai increased by 20.6%, which was less than the 21.7% increase that was seen the previous month.
“Although demand remains relatively elevated, we continue to see further moderation in the rental market. The rate of rental growth has softened throughout the year,” CBRE said.
According to CBRE, which states that growth in a number of important residential areas are “tapering off,” the moderation trend observed in the rental market is expected to continue. In these areas, a large percentage of listings are likewise gradually lowering their asking rents.
In September, secondary market sales rose by 30.5%, while off-plan unit sales decreased by 41.5% from the previous month.
The overall volume of transactions in the year to date through September 2023 reached 87,163, the highest figure recorded throughout the period, despite the monthly decline. The 19% increase in secondary market transactions and the 55.3% increase in off-plan deals support the high volume of sales.