(MENAFN) According to the latest report from CBRE, a global consultancy firm, the real estate market in the UAE experienced robust growth in the first quarter of 2023. Sales and rental rates in the property sector soared, with double-digit increases observed across various segments.

Prime office properties in Abu Dhabi and Dubai witnessed remarkable year-on-year growth of 19.1 percent and 20.2 percent, respectively, between January and March this year. The surge in demand contributed to a significant rise in occupancy rates, which reached an impressive 90 percent in the two cities during the first quarter, compared to 80 percent recorded in the same period last year.

As a result of the heightened occupancy rates, average asking rentals for commercial spaces in Dubai's Grade A, B, and C categories experienced substantial growth. Specifically, rental prices surged by 20.2 percent, 13.5 percent, 18.7 percent, and 28.7 percent, respectively, during the first quarter of 2023.

The strong momentum in Dubai's real estate market is further emphasized by the substantial increase in new lease registrations, which reached 22,802 in the first three months of 2023—a remarkable 60.5 percent surge compared to the previous year.

In the residential sector, Dubai emerged as the frontrunner in terms of sales prices in the UAE. The average property prices in the city experienced a notable growth of 12.8 percent during the first quarter of 2023. In contrast, the capital city, Abu Dhabi, saw a more modest increase of 1.4 percent in average apartment prices during the same period.

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