The transaction value for residential properties in Q1 of 2022 in Dubai, which stood at $7.9 billion compared with $6.26 billion in Q4 of 2021, a 26% increase in value, according to a report published by the MPM Properties (MPM), the real estate advisory subsidiary of Abu Dhabi Islamic Bank (ADIB).
In Abu Dhabi, the real estate sector recorded 3,304 transactions at a cumulative value of $3.08 billion during the same period. About 22,000 residential units are expected to be added to Abu Dhabi’s residential stock by 2024, the report entitled “Real Estate Market Overview,” said.
Office Real Estate Market
In Dubai, the market is witnessing a steady increase in leasing enquiries and occupancy, which is leading to a marginal upward movement in office rents by 1% during the first quarter. Approximately 5.1 million s ft of new office space is expected to be added to the existing stock, from Q2 2022 to 2024.
The Abu Dhabi office inventory remained unchanged during the first quarter of 2022 and currently stands at 4.07 million sq m. A large portion of the supply over the past 12-15 months has come from mixed-use buildings with 1-2 floors of dedicated office space and the remainder for residential use, the report said.
The overall retail activity in Dubai remains robust during the quarter with shopping malls recording improved footfall levels as a result of increased consumer confidence and a strong increase in tourism figures at the backdrop of Expo 2020 while the Abu Dhabi market is experiencing a recovery in retail activity primarily driven by the food and beverage and recreation sectors, the report said.
The average sale rates for properties in Dubai areas assessed by MPM’s report increased by 12% in values compared to Q1 of 2021. In Abu Dhabi, the villa segment continues to see a high demand from occupants, as tenants are looking for a more livable space.
Commenting on the report’s findings, Khalid Ali Al Mansoori, Executive Chairman of MPM Properties said: “The real estate market’s recovery from the pandemic has been very strong, and the latest results show a noticeable upward trend in the market. Dubai residents have been witnessing the effects first-hand, as rent prices continue to soar. The demand for quality, medium-cost rental units is outpacing the current supply. We are looking forward to the delivery of thousands of additional units in the coming two years and will be keeping a close eye on how the situation develops.”
MPM Real Estate Services comprises a real estate and advisory platform providing a full range of professional services from a single provider. It has the largest mainland portfolio in Abu Dhabi; with more than 14,000 units under management, an occupancy rate of 94.7%, and more than 100 billion in combined market value of properties, valued since January 2012.