A recent real estate monitor report released Wednesday shows UAE property transaction values declined 4% year-over-year across the six-week period since the start of a conflict.
The monitor's data highlight divergent trends within the market. Secondary sales values dropped 24% year-over-year over the six weeks, while off-plan sales values rose 20% year-over-year. The rise in off-plan values largely reflects sales and purchase agreement registrations tied to launches from January and February, and includes re-sales of off-plan units. The report notes that few new project launches occurred during March and the first half of April.
Looking at weekly activity, the week of April 5-11 recorded a 23% year-over-year decline in overall transaction volumes and values. Villas were the hardest hit segment during that week, with villa volumes down 45% year-over-year and villa values down 42% year-over-year.
During the same week, secondary market transaction activity contracted markedly: secondary market volumes fell 54% year-over-year and secondary market values were down 50% year-over-year. In contrast, the off-plan market saw a more muted volume change, with off-plan transaction volumes down 4% year-over-year while off-plan values rose 7% year-over-year.
Price metrics for the week of April 5-11 were higher on a year-over-year basis, according to Property Monitor. Overall transacted prices increased 11% year-over-year for that week. Apartment prices rose 10% year-over-year and villa prices increased 4% year-over-year. By market segment, secondary market transacted prices were up 2% year-over-year, while off-plan transacted prices increased 9% year-over-year.
The report also details a sharp reduction in new project activity and handovers in early April. From April 1-14 there were no material property launches, compared with 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 about 1,300 units in the comparable period last year.
These figures form the monitor's near-term snapshot of UAE real estate activity during the specified weeks and the broader six-week window following the start of the conflict.
Data note: All percentage and unit figures are reported by the real estate monitor and Property Monitor for the periods specified in the report.