Key insights
- UAE real estate transactions have decreased 4% YoY in the six weeks following the start of a conflict, with secondary sales falling significantly. While off-plan sales increased, this reflects earlier launches. Recent transaction volumes and values have declined, particularly for villas. The drop in UAE real estate activity could signal a broader slowdown in global investment due to geopolitical uncertainty, indirectly impacting US markets.
Investing.com -- UAE real estate transaction values have declined 4% year-over-year in the six weeks since the start of a conflict, according to a real estate monitor report released Wednesday.
The data shows secondary sales values fell 24% year-over-year, while off-plan sales values rose 20% year-over-year during the period. The off-plan transactions largely reflect sales and purchase agreement registrations for launches from January and February, including re-sales of off-plan units, as few new launches occurred during March and the first half of April.
During the week of April 5-11, overall transaction volumes and values decreased 23% year-over-year. Villa transactions led the decline, with volumes down 45% year-over-year and values falling 42% year-over-year.
Secondary market transaction volumes and values dropped 54% and 50% year-over-year respectively during the same week. Off-plan market volumes declined 4% year-over-year while values increased 7% year-over-year.
According to Property Monitor, overall transacted prices rose 11% year-over-year for the week of April 5-11. Apartment prices increased 10% year-over-year while villa prices were up 4% year-over-year. Secondary market transacted prices rose 2% year-over-year, while off-plan prices increased 9% year-over-year.
From April 1-14, there were no material property launches compared to approximately 7,000 units launched during the same period last year. Total launches from March through April 14 reached approximately 2,000 units. Handovers for April 1-14 totaled approximately 200 units versus approximately 1,300 units last year.
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