Abu Dhabi’s real estate market continued to grow in 2024, driven by high returns on investment, transparency, innovation and strategic foreign investments. With its world-class attractions and family-friendly lifestyle, the UAE capital attracts both local and international buyers, benefitting from strong investor confidence, supported by government initiatives and ongoing developments.
Last year, Al Reem Island stood out as the premier choice among potential homebuyers looking for affordable yet upscale apartments in Abu Dhabi, according to Bayut’s Abu Dhabi Annual Property Market Reports for 2024. Meanwhile, Al Raha Beach has been the most searched location for buying luxury apartments.
ROI tends for buying property in Abu Dhabi
Several areas across Abu Dhabi’s real estate sector stood out last year for their remarkable return on investment (ROI). Al Reef offered the highest average ROI of 8.64 percent for budget-friendly apartments in the UAE’s capital, making it an attractive option for investors.
Al Ghadeer isn’t far behind, yielding 8.41 percent returns in the affordable apartment category.
Buyers looking for luxury apartments geared more towards Yas Island last year since it offers an ROI of 7.07 percent. Meanwhile, Al Raha Beach, with an ROI of 6.09 percent, presented a solid choice for buying high-end apartments.
For budget-friendly villas, Hydra Village reported the highest ROI of 8.09 percent, while Al Ghadeer offered handsome returns for investors at 6.53 percent in the affordable villa market.
Investors and HNWIs looking for luxury villas have favored properties in Yas Island, which recorded an ROI of 6.28 percent. Al Raha Gardens’ solid ROI of 6.23 percent also represented a favorable investment option last year.
Most popular locations for real estate investment in Abu Dhabi
In addition to Al Reem Island, Al Reef and Al Ghadeer emerged as popular options for buying affordable apartments in Abu Dhabi’s real estate sector. Average prices per square foot for properties for sale in the affordable apartment sector have generally trended upwards, with most areas recording increases between 2 percent and 20 2 percent.
Al Ghadeer has shown the most significant price growth at 19.8 2 percent, suggesting rapid development and increasing popularity. Baniyas has been the only area with a price decline of 1.92 percent, which could potentially present favorable investment opportunities moving forward.
Areas that have captured investor interest when it comes to upscale apartments include Yas Island and Saadiyat Island. Sales prices for luxury apartments in popular areas have recorded price increases of between 5 percent and 32 percent. The most prominent appreciation was recorded in Saadiyat Island, where prices grew by 32.4 percent.
In 2024, Al Reef emerged as the most popular community for buying affordable villas in Abu Dhabi. Other preferred areas include Khalifa City and Abu Dhabi Gate City. The average price-per-square-foot for affordable villas has increased by between 6 percent and 18 percent, with Al Ghadeer recording rises of 17.4 percent in property prices. However, Khalifa City and Abu Dhabi Gate City have witnessed marginal declines of under 2 percent.
Yas Island has been the undisputed favorite for luxury villa purchases in Abu Dhabi’s real estate market during 2024, with Al Raha Gardens and Saadiyat Island also making it to the list of popular areas. Prices for luxury villa sales have increased by between 2 percent and 23 percent, with Yas Island reporting the highest price surge at 22.1 percent.
Read: Dubai investors earn $27.36 billion from real estate sector in 2024
Popular off-plan projects in 2024
Abu Dhabi’s off-plan real estate market has remained attractive, appealing to investors and homebuyers in the affordable and luxury segments.
In the affordable apartments segment, City of Lights on Al Reem Island, Al Reeman 1 in Al Shamkha and the eco-friendly Royal Park in Masdar City were the top picks for savvy investors in the affordable apartment category. In the luxury segment, luxury apartment seekers have shown significant interest in Yas Bay on Yas Island, Saadiyat Island’s Cultural District, and the breathtaking Al Maryah Vista on Al Maryah Island.
Those looking for affordable villas last year preferred Reem Hills on Al Reem Island, Bloom Living in Zayed City and Al Reeman 2 in Al Shamkha, all offering favorable opportunities to own desired real estate at competitive price points. In the luxury segment, buyers chose the opulent Saadiyat Lagoons on Saadiyat Island and the magnificent Yas Acres on Yas Island the most.
