According to new data, the cost of buying opulent homes and apartments in Abu Dhabi’s most desirable neighborhoods has increased by up to 13% in 2023.
According to search trends on the top real estate website in the UAE, Bayut.com, the prices of properties in Abu Dhabi have been rising, which may be good news for homeowners wishing to sell or rent out their properties. The trend of higher sales prices in upscale neighborhoods with upscale amenities and facilities was evident, even though there was a rise in demand in several other areas as well.
In its recently released Abu Dhabi Annual Sales and Rental Market Report for 2023, Bayut offers a thorough examination of the capital city’s real estate market.
Through these thorough reports, Bayut provides important insights into pricing dynamics, market trends, and future projections for Abu Dhabi’s sales and rental market.
Al Reef and Al Ghadeer have been the most sought-after neighborhoods for reasonably priced apartments. In 2023, there has been a significant increase in the number of people searching for luxury apartments on Al Reem Island, Yas Island, and Saadiyat Island.
According to data from Bayut, s. Saadiyat Island was a standout example, with price increases of 8.73 percent for luxury apartments and a whopping 12.9% increase for premium villas.
The sales price per square foot of the most sought-after neighborhoods with reasonably priced apartments has moderately declined, by as much as 2.05%. The price-per-square-foot of affordable villas has increased slightly, by as much as 3.95%, according to data. Al Samha received the most notable praise, followed by Khalifa City and Al Ghadeer.
In 2023, over 14,000 residential property sales transactions, both off-plan and ready, were recorded in Abu Dhabi’s digital real estate ecosystem, DARI, with a total value exceeding Dh52 billion.
Al Reef was the only affordable housing provider to have an impressive 8.04 percent rental yield when it came to projected ROI for apartments. For those looking to purchase opulent apartments in Abu Dhabi, Al Reem Island maintained to provide a robust 6.65% return on investment.
Positive statistics are also revealed by Bayut’s data analysis for return on investment (ROI) in the well-liked villa communities in Abu Dhabi. Al Raha Gardens provided the highest return on investment (ROI) of 6.04 percent for buy-to-let villas in the luxury villa segment, while Hydra Village provided a 6.78 percent ROI for houses in the affordable category.
Particularly in island communities, advertised rental prices for apartments in the most sought-after luxury areas have increased moderately to significantly by as much as 14%. Renting an affordable apartment has remained competitive, with some areas seeing price reductions of nearly 3%.
Affordably priced villa rentals have seen slight to moderate increases of up to 4.91%. On the other hand, rental prices for upscale villas saw significant increases. According to Bayut’s report, luxury home prices have increased on Yas Island and Saadiyat Island by 12.7% and 22.2%, respectively, possibly due to strong demand.
Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group Mena said: “What we witnessed in 2023 was a record-breaking year for the overall UAE real estate market and Abu Dhabi has also been a major contributor to that success. Local and international HNWIs continue their interest in UAE real estate as a prime market for investment, especially with landmark projects like Jubail Islands and Rahman Islands taking shape.
While investors taking advantage of favorable market conditions is undoubtedly one of the reasons behind the growth in the Abu Dhabi real estate market, more people are choosing to become homeowners rather than pay outrageous rent due to the capital’s rental sector’s consistent increases.