The real estate market in Abu Dhabi experienced strong growth in the first quarter as the capital city of the United Arab Emirates continues to draw in foreign investors despite rising sales prices, especially in affluent neighborhoods.
The first quarter of 2024 saw an increase of up to 6% in sales prices for luxury apartments and villas in well-liked neighborhoods, according to data from Bayut, a well-known real estate portal in the United Arab Emirates. Saadiyat Island has seen modest price increases; premium villas have appreciated by 5.53% while luxury apartments have increased by 3.64%.
“The data analysis for the first quarter indicates a steady growth trajectory in Abu Dhabi’s real estate market. The rise in property prices, transaction volume, and total transaction value reflects the market’s robust and consistent performance. These trends are anticipated to persist in the subsequent quarters, solidifying Abu Dhabi’s position as an attractive destination for real estate investments,” the property portal said.
According to data obtained from a thorough examination of pricing trends and market dynamics in Abu Dhabi’s rental and sales sectors for the first quarter, the price per square foot of reasonably priced villas and apartments has generally decreased moderately, sometimes by as much as 4.0 percent. But in the first three months of 2024, Al Ghadeer saw price increases of 6.02 percent for apartments and 5.19 percent for reasonably priced villas.
The neighborhoods of Al Reef and Al Ghadeer are now the best options for people looking for reasonably priced apartments. Al Raha Beach and Al Reem Island have seen a lot of interest in luxury apartment purchases in Q1 2024. Budget buyers have concentrated their attention on Al Reef and Khalifa City when it comes to villas, while luxury buy-to-let villas in Abu Dhabi have favored Yas Island and Saadiyat Island, according to Bayut data.
Over 4,674 residential property sales transactions valued at over Dh9.6 billion were recorded in Q1 2024, according to Abu Dhabi’s reputable digital real estate ecosystem DARI. This number is a clear reflection of the market’s robust performance and investors’ confidence in the city’s real estate sector. 1,167 ready properties and 1,752 off-plan units are included in this.
Haider Ali Khan, CEO of Bayut and CEO of Dubizzle Group Mena, said Abu Dhabi’s real estate market has carried the momentum of its strong 2023 performance into the first quarter of 2024. “When we look at the current market trends, it’s quite clear that there is increasing confidence among both local and international HNWIs that Abu Dhabi real estate is abundant with opportunity and is a prime market for investment. Looking to the future, with mega-projects projects such as Jubail Islands and Ramhan Islands coming to fruition, it’s fair to say that exciting times lie ahead for the capital’s thriving property sector,” said Khan.
The reasonably priced apartments in Al Reef have gained popularity as investment choices due to their high estimated 8.30% return on investment (ROI). While investors interested in purchasing opulent apartments for sale in Abu Dhabi can still count on Al Reem Island to deliver a solid 6.9% projected rental yield.
Yas Island had the highest ROI of 6.91 percent for luxury villas, while Al Ghadeer offered the highest ROI of 7.65 percent for affordable homes.
In Abu Dhabi, Royal Park and Bloom Living have become the best options for reasonably priced off-plan apartments. Island community developments such as Saadiyat Cultural District and Yas Beach Residences piqued the interest of luxury property buyers. A study of Bayut search trends also showed which villa projects are popular with buyers of off-plan real estate. One well-liked option for reasonably priced off-plan purchases was Fay Al Reeman 2. The opulent off-plan villas of Yas Acres and Murjan Al Saadiyat were popular among buyers.
Mohammed Bin Zayed City and Khalifa City were the best options for reasonably priced villas in the rental market, while Khalifa City and Al Khalidiyah were well-liked for inexpensive apartments. Al Raha Gardens and Yas Island have been the most popular locations for upscale villas, while Al Reem Island and Al Raha Beach have become the most popular locations for apartments in the luxury categories.
According to the study, there has been an apparent rise in apartment rental rates of up to 9.0% in affluent and coveted neighborhoods, particularly in Saadiyat Island and Al Raha Beach communities. In a similar vein, prices for reasonably priced apartment rentals increased by almost 7.0 percent in some localities, including Al Muroor and Al Khalidiyah.
The rental prices of reasonably priced villas have moderately increased by up to 5.0 percent. One area where landlords have listed properties at higher price points is the Madinat Al Riyadh neighborhood, which saw a 12.9 percent increase in rent. In contrast, there has been a slight to moderate increase in the rental price of upscale villas. The luxury home market saw a notable increase of 8.15 percent for Al Bateen in particular, maybe as a result of high demand.