Staff Report,
Dubai, UAE
Metropolitan Capital Real Estate (MCRE), a leading full-service real estate agency and part of the Metropolitan Group, announced that its sales transactions touched Dh3 billion in 2023, a 130 percent surge from Dh1.3 billion in 2022. It reflects the growth of the Abu Dhabi market, which saw transactions and sales value more than double to 13,000 transactions and Dh44 billion, respectively. This surge is attributed to a significant increase in both off-plan (Dh35 billion) and secondary market (Dh9 billion) transactions.
In the first quarter of 2024, MCRE achieved sales worth Dh1.6 billion compared to Dh1.1 billion in the same period last year, rising by 45 percent. The company has also seen its market share increase to over 12 percent in Q1 this year (excluding freehold areas and institutional sales), up from 10.5 percent last year. It has also noted an increase in its average transaction value, rising to Dh4.7 million in Q1 this year from Dh3.3 million in 2023, compared to the overall market average of Dh3.28 million. Off-plan sales average nearly doubled in the first quarter of 2024 to Dh6.1 million from Dh3.8 million driven by some high ticket project launches, while secondary sales increased from Dh2.9 million in 2023 to Dh3.2 million in 2024.
Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate, said: “MCRE’s growth can be attributed to the rising demand for villas, increased project launches and a diversified investor base. We saw a lot of new independent developers enter the market and decide to do their first project in Abu Dhabi as there are more plots available and prices are quite attractive compared to other premium locations in the UAE. The diversification of investor demographics in the Capital is a strong indicator of the market’s appeal. We’re witnessing growing interest from a wider range of nationalities, alongside established investors, demonstrating confidence in the emirate’s long-term potential.”
According to MCRE, the Abu Dhabi market witnessed a significant shift in investor demographics in 2023. While Russian and CIS investors were initially prominent, their interest waned in Q2, paving the way for a surge from UK and Chinese investors. Additionally, MCRE saw increased interest from diverse nationalities like Cypriots and Jordanians, complementing established investors from India, Germany, Austria and Western Europe. This trend is expected to continue in 2024, with buyers from India, Pakistan, Iran, other GCC countries, and Eastern and Western Europe joining the ranks of key investors.
Abu Dhabi faced a shortage of ready-to-move-in villas in 2023 with only 900 delivered in 2023 compared to 4,600 apartments. However, the market is expected to see the handover of more than 2,500 villas and 4,000-4,500 apartments in 2024. The average price in secondary market is projected to steep 7-8 percent this year. The off-plan market is also expected to grow, driven by an increase in new project launches from international developers who acquired land in 2023. Additionally, at least three to four new developers from Dubai and other emirates are anticipated to enter the Abu Dhabi market, solidifying the emirate’s position as a developer hotspot. The market aims to achieve sales worth Dh65-76 billion in 2024, projecting around 70 percent year-on-year increase.
Ends
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