Abu Dhabi Property Market Thrives with Robust Growth in first half of 2024

Friday, 2 August 2024

In the first half of 2024, sales prices and rental rates in the inexpensive and premium categories of the Abu Dhabi real estate market increased significantly.

Luxury Villa Segment

Luxury villa residential island communities experienced significant price growth. Yas Island demonstrated exceptional performance, with premium home values increasing by 10.3% due to a rise in demand for affluent real estate. Prices for other well-liked luxury villa areas rose by as much as 10%, which was a noteworthy development.

Luxury Demand Drives Capital Growth

Similar momentum was seen in the market for premium apartments. With the largest appreciation of 6%, Saadiyat Island further solidified its position as a top destination for upscale apartments. The strong demand for opulent houses in the capital is demonstrated by the price rises of 2.77% and 2.75%, respectively, for premium flats on Yas Island and Al Reem Island.

Affordable Segment

The market for affordability showed growth and resiliency. Affordable flats in Al Reef witnessed a slight increase of 2.16% in advertised sales price-per-square-foot, reflecting increased interest in cost-effective solutions among buyers and investors. Apartments in Al Ghadeer saw a large increase of 9.5% in this regard.

Notable Price Movements in Villas

Positive activity was observed in the market for inexpensive villas. Budget-friendly villas had an increase in average sales prices per square foot of up to 7% in H1 2024. Significant increases of 6.10% and 5.57% were reported by villas in Al Ghadeer and Al Samha, respectively. On the other hand, Khalifa City villa prices decreased by a meager 1.73%.

Attractive Returns on Investment (ROI)

A number of places had profitable returns. Al Ghadeer apartments proved to be a profitable choice in the cheap segment, with a high estimated return on investment of 8.52%. Al Reem Island, which boasts a robust estimated rental return of 6.94%, continues to be a favorite choice for apartment purchases among enthusiasts in the luxury class. With a remarkable ROI of 6.89% for luxury villas, Yas Island properties outperformed Hydra Village in the villa market with a ROI of 8.08% for more inexpensive homes.

Off-Plan Developments Attract Interest

Well-liked off-plan projects attracted a good deal of attention as well. Investors on a tight budget found that Royal Park and Bloom Living were the best options for affordable apartments. Island community off-plan developments like Saadiyat Cultural District, City of Lights, and Yas Bay were very appealing to affluent buyers. Small-ticket buyers preferred Yas Acres and Murjan Al Saadiyat for their luxurious off-plan villas, but Fay Al Reeman 2 was the more reasonable option.

Rental Property Market in Abu Dhabi

The rental property market in Abu Dhabi has remained resilient and vibrant. Mohammed Bin Zayed City (MBZ City) and Khalifa City were the most popular locations for renting reasonably priced villas, while Khalifa City and Al Khalidiyah were notable options for apartment rentals in the budget category. Yas Island and Al Raha Gardens topped the rental market for upscale villas, while Al Reem Island and Al Raha Beach were the best places to find apartments for luxury rentals.

There is a tremendous demand for high-end rental homes, as seen by the amazing expansion of the luxury apartment rental market, with prices rising by as much as 21% in popular regions like Saadiyat Island and Al Raha Beach. Apartment rentals in the inexpensive segment increased by more than 7% in neighborhoods like Al Muroor, indicating a rising desire for reasonably priced rental choices. The market for villa rentals displayed a range of patterns, with reasonably priced villa rentals rising by roughly 7% in the majority of locations, however with a slight decrease in Shakhbout City.