Arab News, Wednesday, Jul 26, 2023 | Muharram 8, 1445
FDI in Abu Dhabi’s real estate sector soars 363% in H1, reaches $227m
Emirates:
In a significant stride for the UAE’s property market, Abu Dhabi’s real
estate sector recorded a 363 percent year-on-year increase in foreign direct
investments in the first half of 2023 to reach 834.6 million dirhams ($227
million).
The regions with the highest shares of FDI
included Saadiyat Island at 34 percent, Yas Island at 28 percent, and Al Jurf at
12 percent.
Al Reem Island claimed an 11 percent share, whil
Al Shamkha recorded 8 percent, according to the Emirates News Agency, also known
as WAM, citing data from Abu Dhabi’s Department of Municipalities and
Transport.
“We are thrilled to announce the remarkable surge
in foreign direct real estate investments in Abu Dhabi. The astounding 363
percent growth witnessed during the first half of this year is a testament to
the emirate’s exceptional appeal to foreign investors,” Adeeb Al-Afifi,
executive director of the real estate sector at the department, said.
He added: “This includes its strategic location,
world-class infrastructure, and supportive economic and legislative environment,
all of which have contributed to enhancing the emirate’s position as a preferred
destination for individuals of all nationalities to invest, live and work.”
Al-Afifi further stated that Abu Dhabi’s
investment climate is bolstered by incentives and robust frameworks which have
stimulated an environment for foreign investors to pursue promising prospects in
the market.
Moreover, Dubai’s real estate sector
also witnessed growth in the second quarter of the year with an increase of 37
percent in transactions compared to the same period of 2022, according to the
latest Dubai Land Department data published by Better Homes.
The report indicated that transactions reached
27,215 in the second quarter, with the total value of properties sold touching
69.8 billion dirhams.
In terms of property type, 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. In comparison, apartments increased by 5 percent in the same
period.
Dubai Production City recorded the highest growth
in apartment prices, up 23 percent quarter on quarter, followed by Living
Legends and Al-Habtoor City, which increased by 21 and 13 percent,
respectively.
Jumeirah Islands saw the fastest growth in villa
prices, up 13 percent quarter on quarter and 32 percent year on year.