Global Millionaires Drive Real Estate Surge in the UAE

The growth of Abu Dhabi and Dubai's residential property markets has surprised real estate consultancy CBRE. According to the Arabian Business, the spokesperson from CBRE said that they had expected demand to decline from the previous year's strong levels, but it has remained strong, driven by a number of factors, including the UAE's strong economic performance and the country's attractiveness to foreign investors.

“We expected demand to actually slightly adjust compared to what was a very strong year last year. But actually, that hasn’t really been the case when we look at Abu Dhabi or Dubai,” said Taimur Khan, Head of Research EMEA at CBRE. 

According to the UAE Real Estate Market Outlook Mid-Year Review, there was a 94.1 percent rise in the overall volume of real estate dealings in Abu Dhabi during the first half of 2023 (H1 2023) when compared to the previous year. This growth was attributed to a remarkable surge of 160.4 percent in off-plan transactions.

Although the annual growth rate of average villa prices in Abu Dhabi has accelerated, the rate of growth for apartments eased during the second quarter of 2023. Nevertheless, CBRE expects a reversal of this trend as the year progresses.

In H1 2023, both Abu Dhabi and Dubai witnessed remarkable growth in real estate transactions. Abu Dhabi saw a 94.1% rise driven by a 160.4% surge in off-plan deals, while Dubai's transactions surged by 43.3%, elevating prices due to increased demand.