In the fourth quarter of 2024, Abu Dhabi’s real estate market performance exhibited a primarily positive trend, a new report suggests. According to recent data from ValuStrat, the market experienced a 25.7 percent growth in residential sales throughout the fourth quarter yet recorded a yearly reduction of 23.5 percent. Off-plan transactions substantially declined by 60.8 percent to become the primary factor behind the market sales decrease according to projections. In Q4 ready properties took up 61.5 percent of the total residential property market sales.
The sectors encompassing residential, office, hotel, and industrial all noted increases in rental prices, while the capital values in the residential sector continued their upward movement across most communities. The ValuStrat Price Index advanced to 123 points, with villas and apartments recording average annual capital gains of 8.9 percent and 3.5 percent, respectively. On the rental side, the index achieved 118.4 points, with villas experiencing a rise of 6.7 percent year-on-year to reach 123.7 points, and apartments growing by 9 percent annually, achieving 113.7 points. The figures stand against a 100-point baseline measurement from the initial quarter of 2021.
Office sector maintains strong demand
The office sector demonstrated strong performance by showing asking rates in primary commercial areas rose 3.4 percent in a quarter and 25.9 percent over a year. The business districts experienced high occupancy rates since their average rental rates achieved 90.5 percent. The industrial rental rates recorded yearly escalation of 12.3 percent across the lower bracket and 16.1 percent across the higher bracket during this period.
Hospitality sector shows improvement
Hotel booking rates reached 79.4 percent between January to September 2024 which marked a 6.3 percent increase from the prior year. Revenue Per Available Room (RevPAR) demonstrated a 19.4 percent increase from the previous year at the same time The Average Room Rate (ARR) grew by 9.3 percent annually.
The real estate performance of Abu Dhabi experienced strong growth in Q4 2024 because it demonstrated rising property values, better rental rates and enhanced occupancy figures in residential, office and industrial and hospitality properties.
