Abu Dhabi Real Estate Market: Q3 2023 Review

Abu Dhabi Real Estate Market: Q3 2023 Review

The Abu Dhabi real estate market has witnessed significant growth and impressive spikes in demand during the third quarter of 2023. This period has revealed a sustained interest from property seekers and record transaction values across both the off-plan and existing property sectors. In this article, we will delve into the key findings and trends that have shaped the Abu Dhabi real estate market in Q3 2023.

Record-Breaking Off-Plan Sales

Abu Dhabi experienced a remarkable surge in off-plan sales, with transaction volumes increasing by a staggering 99.2% compared to the previous year. Off-plan properties accounted for a substantial 75.1% of all home sales, attracting growing interest from both domestic and international investors. This surge in off-plan sales indicates a strong demand for properties that are still under development, demonstrating the confidence investors have in the Abu Dhabi real estate market.

Villas Outpacing Apartments

In terms of growth, villa rentals have outpaced apartments in Abu Dhabi. The demand for villas as rental properties has seen a significant increase, reflecting the preference of tenants to own a home instead of renting. This shift in behavior can be attributed to the surge in average market value for renting, making owning a villa a more attractive option for residents. The rise in villa rentals signifies the appeal of spacious and luxurious properties in Abu Dhabi’s real estate market.

Hospitality Sector Performance

The hospitality sector in Abu Dhabi has delivered high-performance results during Q3 2023. With the gradual recovery of the travel industry, the demand for hotel accommodations has increased. Abu Dhabi’s world-class hotels and resorts have attracted both domestic and international tourists, contributing to the overall growth of the real estate market. The positive performance of the hospitality sector further strengthens Abu Dhabi’s position as a top tourist destination and a lucrative market for real estate investments.

Key Market Insights

To gain a comprehensive understanding of the Abu Dhabi real estate market in Q3 2023, let’s explore some key insights from various reports and analyses:

Property Finder’s Market Watch Report

According to Property Finder’s Market Watch report, Abu Dhabi recorded a significant surge in total sales transactions, both residential and commercial, during Q3 2023. The number of residential transactions reached a record high for a quarter, with a substantial increase of 137% compared to the same period in 2022. Off-plan properties played a pivotal role in driving this growth, accounting for 79% of the total transactions.

Mo-asher Dubai’s Sales Price and Rental Performance Index

Mo-asher Dubai’s Sales Price and Rental Performance Index, launched in cooperation with Dubai Land Department and Property Finder, reveals the overall quarterly index for sales in Q3 2023 recorded a 12.4% increase compared to the previous year. The apartments quarterly sales index increased by 21.2%, while the villas/townhouses quarterly sales index showed a remarkable increase of 37.3%.

ValuStrat’s Report

ValuStrat’s report highlights the impressive 99.2% increase in off-plan sales transaction volumes in Abu Dhabi compared to the previous year. Off-plan properties accounted for a significant portion of home sales, attracting growing interest from international investors. The surge in off-plan sales further demonstrates the appeal and potential long-term value of properties that are still under development.

Rental Market Trends

The rental market in Abu Dhabi has also witnessed notable trends during Q3 2023. Let’s explore some key insights:

Dubai’s Rental Contracts Increase

Dubai saw a significant increase in rental contracts, with a year-on-year growth of 11.2% in Q3 2023. The number of rental contracts registered reached 156,422, reflecting a growing demand for rental properties in the city. This increase in rental contracts indicates a strong interest from individuals looking for a home in Dubai, contributing to the overall momentum of the real estate market.

Preferred Rental Areas

Dubai Marina, Jumeirah Village Circle (JVC), Business Bay, Downtown Dubai, and Jumeirah Lake Towers (JLT) were among the top areas preferred for apartment rentals in Q3 2023. These locations offer a range of amenities, convenient access to key landmarks, and a vibrant lifestyle. For villa rentals, Dubai Hills Estate, Damac Hills 2, Al Barsha, Jumeirah, and Damac Hills emerged as the preferred choices among renters.

Top Areas for Property Investment

When it comes to property investment, certain areas in Abu Dhabi and Dubai stand out. Let’s explore these top areas:

Abu Dhabi

Al Reem Island, Yas Island, Al Raha Beach, Saadiyat Island, and Masdar City are the top areas for those looking to own an apartment for investment or residence purposes in Abu Dhabi. These locations offer a mix of residential and commercial developments, with amenities such as waterfront views, leisure facilities, and proximity to key business districts.


Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle are the preferred choices for those looking to own an apartment in Dubai. These areas offer a diverse range of properties, from luxury high-rise apartments to more affordable options, catering to different budgets and lifestyles.

For villa investments, Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Al Furjan, and Damac Hills are considered prime locations. These areas offer spacious villas with modern amenities, lush green surroundings, and easy access to schools, shopping centers, and entertainment options.


The Abu Dhabi real estate market has shown remarkable growth and resilience in Q3 2023. The surge in off-plan sales, the rise in villa rentals, and the strong performance of the hospitality sector all contribute to the overall positive trajectory of the market. With attractive investment opportunities and a wide range of properties to choose from, Abu Dhabi continues to be an appealing destination for both local and international investors. As the market evolves, it is crucial for investors and stakeholders to stay informed about the latest trends and developments to make informed decisions and maximize their returns in the Abu Dhabi real estate market.

Disclaimer: The information provided in this article is based on reports and analyses available at the time of writing. Please consult with a professional financial advisor or real estate expert for personalized investment advice.

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