According to ValuStrat, office sales prices in Abu Dhabi increased by 38.7% year over year in the fourth quarter of 2023, while asking rents increased by 13.3%.
In its most recent report on Abu Dhabi real estate, the consulting group stated that Aldar Properties achieved 97% occupancy across its prime Grade A commercial properties during Q4 2023, including its four buildings at Abu Dhabi Global Market (ADGM), HQ, and International Tower.
According to the report, the market is experiencing high growth, which is reflected in the rising demand for Grade-A office spaces. It also stated that government programs like retiree visas and remote work are intended to draw in foreign professionals and investors, which will support the market even more.
In the meantime, it’s anticipated that in 2024, apartment prices will stay steady and freehold villa prices will rise moderately in Abu Dhabi.
According to ValuStrat, the real estate market in the emirate is anticipated to grow steadily in the upcoming year, with a 3%–5% increase in residential capital values.
Mortgage rates falling in 2024 might increase transactions while off-plan transactions slow down. It stated that in Q4 2023, rental values increased by 6.4% YoY while residential capital values increased by 4.2% YoY.
The report predicted a foreseeable improvement in key performance indicators and a return to pre-pandemic levels, if not higher, in the hospitality sector.
According to the research, occupancy increased by 3% YoY from January to October 2023 to reach 74%.
In the meantime, revenue per available room increased by 26% to AED 309, and the average daily rate increased to AED 420 ($114.36), up 23% YoY.