Demand for ready properties grew in the UAE in the first quarter of 2024 as tenants are increasingly opting for ownership to beat rising rentals.
According to the data released by Property Finder, the first quarter of 2024 opened up to strong demand for existing projects across both Dubai and Abu Dhabi unlike the first quarter of 2023 where off-plan transactions soared high.
Rents have been consistently on the rise over the past three years after the pandemic. It is expected that this upward rental trend will continue in 2024 also due to unprecedented demand from the rising population. Rising rentals have prompted residents in the UAE to resort to buying properties in Dubai and Abu Dhabi, which will help residents save on rentals and also see their property value appreciating.
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“2024 has opened up to an interesting and promising phase of growth. We can see a more diversified demand and we are positive of the impact this will have in the months to come,” said Cherif Sleiman, chief revenue officer, of Property Finder.
Data showed that the existing/ready market in Dubai registered almost 19,600 transactions in Q1 2024, increasing its market share to 54 per cent of the total transactions compared to around 15,000 transactions, which contributed 48 per cent of the total transactions in Q1 2023. This performance witnessed a notable volume growth of 30 per cent compared to Q1 2023.
By reaching Dh78.2 billion, transaction values in Q1 2024 contributed to 68 per cent of the existing sales transaction value, compared to 60 per cent in Q1 2023. Consequently, the existing/ready transaction value witnessed a significant increase of 46 per cent compared to Dh53.6 billion in Q1 2023.
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 per cent.
There were around 16,600 off-plan sales transactions compared to 16,000 transactions in Q1 2023, representing 46 per cent of the total transaction volume compared to 52 per cent of the total transactions in Q1 2023.
814 transactions in Abu Dhabi
Abu Dhabi real estate in Q1 2024 recorded 814 residential transactions representing around 38 per cent of the total transactions compared to 628 transactions that contributed to 27 per cent of the total transactions in Q1 2023. This was a notable growth of 30 per cent 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.
The Department of Municipalities and Transport (DMT), Abu Dhabi, saw a slight decrease in total sales transactions (both residential and commercial) as the number of residential transactions reached a quarter around 2,145 transactions compared to 2,286 transactions in Q1 2023.
In the UAE capital, the off-plan market registered around 1,331 sales transactions compared to 1,658 transactions in Q1 2023 representing 62 per cent of the total transactions compared to 73 per cent of the total transactions in Q1 2023, recording a significant year-on-year decline of 20 per cent in terms of volume.