(MENAFN) According to the latest report from global consultancy firm CBRE, the property market in the United Arab Emirates (UAE) experienced significant growth in sales and rental rates during the first quarter of 2023. Prime office properties in Abu Dhabi and Dubai particularly stood out, recording year-on-year growth of 19.1 percent and 20.2 percent, respectively, between January and March of this year.

This surge in growth can be attributed to a remarkable 90 percent increase in average occupancy rates in both cities during the first quarter, compared to the 80 percent recorded in the same period last year. The higher occupancy rates have consequently led to an escalation in average asking rentals for different grades of commercial spaces in Dubai. Grade A, B, and C spaces witnessed rental increases of 20.2 percent, 13.5 percent, 18.7 percent, and 28.7 percent, respectively, in the first quarter of 2023.

Dubai alone witnessed a noteworthy surge in lease registrations, with 22,802 new registrations in the first three months of 2023, marking a substantial 60.5 percent increase compared to the previous year. In terms of the residential sector, Dubai took the lead in the UAE, with average property prices experiencing a significant growth of 12.8 percent during the first quarter of 2023. However, in the capital city of Abu Dhabi, average apartment prices witnessed a comparatively modest growth of 1.4 percent during the same period.

Taimur Khan, the head of research for the Middle East and North Africa at CBRE, highlighted that the UAE's real estate market has maintained robust demand levels throughout the first quarter of 2023, which has continued to drive performance across all sectors. The positive growth indicators in both the commercial and residential segments of the UAE's property market reflect the resilience and attractiveness of the country's real estate sector to investors and businesses alike.

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