Abu Dhabi’s property market achieved a significant milestone as its real estate sector experienced a remarkable 363 percent year-on-year increase in foreign direct investments during the first half of 2023, reaching 834.6 million dirhams ($227 million).
Among the regions, Saadiyat Island claimed the highest share of FDI at 34 percent, followed by Yas Island at 28 percent, and Al Jurf at 12 percent. Al Reem Island and Al Shamkha recorded 11 percent and 8 percent shares, respectively, according to data from Abu Dhabi’s Department of Municipalities and Transport cited by the Emirates News Agency (WAM).
Adeeb Al-Afifi, the executive director of the real estate sector at the department, expressed excitement over the surge in foreign direct real estate investments in Abu Dhabi. He credited the emirate’s strategic location, world-class infrastructure, and supportive economic and legislative environment for attracting foreign investors from various nationalities to invest, live, and work in the region.
Al-Afifi highlighted that Abu Dhabi’s investment climate is further supported by incentives and robust frameworks that foster an environment conducive to pursuing promising prospects in the real estate market.
In the same vein, Dubai’s real estate sector also demonstrated growth in the second quarter of the year, with a 37 percent increase in transactions compared to the same period in 2022, as per the latest data from Dubai Land Department published by Better Homes.
The report indicated that the second-quarter transactions reached 27,215, with the total value of properties sold amounting to 69.8 billion dirhams. Apartment transactions in Dubai increased by 57 percent in the second quarter of 2023 compared to the same period last year, while villa and townhouse transactions decreased by 9 percent.
Due to a decrease in off-plan villa transactions, the total value of townhouse and villa properties sold decreased by 10 percent quarter on quarter, while apartment transactions increased by 5 percent during the same period.
Dubai Production City showed the highest growth in apartment prices, rising by 23 percent quarter on quarter, followed by Living Legends and Al-Habtoor City, which increased by 21 percent and 13 percent, respectively.
Jumeirah Islands witnessed the fastest growth in villa prices, rising by 13 percent quarter on quarter and 32 percent year on year.