Abu Dhabi’s real estate market is undergoing a remarkable transformation, fueled by a commitment to transparency, technological innovation, and strategic foreign investment. Leading this charge is the Abu Dhabi Real Estate Center (ADREC). In this interview, Rashed Al Omaira, acting director general of ADREC, shares insights into the ambitious strategies that are shaping Abu Dhabi’s real estate landscape.
What strategies is ADREC implementing to attract more foreign direct investment (FDI) and strengthen international investor confidence in Abu Dhabi’s real estate market?
ADREC’s approach to attracting Foreign Direct Investment (FDI) in Abu Dhabi’s real estate sector is built on a foundation of transparency, high-caliber developments, and strategic engagement. We aim to build investor confidence through data accessibility, showcased on platforms like ADREC platform, where investors can access real-time information on property prices, market trends, and geographical insights, key data points for making informed decisions.
The results speak for themselves: in the first nine months of 2024, Abu Dhabi’s real estate sector recorded AED5 billion in FDI, a 177 percent increase from the previous year, with investment from over 85 countries. Foreign investors contributed AED20.55 billion in property sales, representing 76.9 percent of total investment volume, a historic high.
Abu Dhabi’s commitment to transparency is reinforced by its recognition as one of the top 5 improvers in the JLL 2024 Global Real Estate Transparency Index (GRETI), climbing four spots to 41st position. Our target is ambitious but clear: by 2030, Abu Dhabi aims to be among the top 25, setting a regional benchmark for transparency and investor trust.
In partnership with developers, ADREC focuses on ensuring the development of high-quality, livable communities that meet the Tier 1 Livability Standard, with a target of achieving an 85 percent livability score by 2030. This approach is designed to attract foreign investors seeking long-term, stable investment opportunities in communities with premium infrastructure and amenities.
In the coming period, ADREC will intensify its promotional efforts in targeted markets by conducting roadshows and participating in local and international exhibitions to showcase the strengths of Abu Dhabi’s real estate market and the regulatory environment that attracts both investors and developers. These initiatives will be undertaken in close collaboration with local developers and real estate brokers, connecting them with counterparts in key target markets. This coordinated approach provides a unified view of Abu Dhabi’s real estate opportunities, simplifying the process for foreign investment in both government-designated and private sector properties.
Furthermore, the establishment of ADREC as an entity will play an active role in showcasing available real estate investment opportunities, positioning itself as a primary destination for supporting investors across diverse projects, including mixed-use developments. By serving as a unified platform that centralizes all aspects of the real estate investment process—from listing and sales to acquisition and development—ADREC ensures investor convenience, elevates satisfaction, and builds trust in the market’s offerings, services, and regulatory oversight.
With real estate transactions expected to reach AED87 billion by year-end, what do you believe are the key factors driving this growth, especially as the emirate continues to expand its infrastructure and attract global investors?
The expected increase in real estate transactions to AED87 billion by year-end is driven by several key factors unique to Abu Dhabi’s expanding market. The emirate’s ambitious infrastructure development initiatives, with landmark projects like Saadiyat Island, Yas and Al Maryah Island, have enhanced both residential and commercial appeal, catering to an increasingly diverse investor base seeking long-term, high-quality assets.
ADREC also offers unparalleled support to developers through its “Working to Make You Happy” initiative, which provides step-by-step guidance from initial project registration to final handover. This includes assistance with project registration, and managing escrow accounts to secure investor funds. By actively monitoring project reports and enabling developers with streamlined regulations and digital transformation, ADREC ensures a smooth, efficient process, empowering developers to focus on creating high-quality real estate assets that align with Abu Dhabi’s strategic vision.
As the market regulator, ADREC has streamlined processes to ensure seamless transactions, reinforcing Abu Dhabi’s reputation as a stable and attractive destination for global investors. In 2024, the number of registered projects reached 49, with a combined value of AED43.2 billion. These new developments reflect Abu Dhabi’s commitment to providing a wide range of investment options, further supporting transaction growth.
This investor-friendly environment is also bolstered by Abu Dhabi’s broader economic diversification initiatives, aligned with the Falcon Economy strategy. Together, these efforts position real estate as a lucrative and stable investment opportunity in the region, attracting investors from around the world.
Read more: Abu Dhabi: Q1 2024 records $4.32 billion in real estate transactions
The real estate sector has contributed approximately 23 percent to Abu Dhabi’s GDP by the end of H1 2024. What strategies are in place to increase this contribution, and how do these align with Abu Dhabi’s goal of diversifying its economy?
Real estate and construction activities have become a significant economic pillar, contributing 23 percent to Abu Dhabi’s GDP in H1 2024, valued at AED71.9 billion—a 9 percent increase compared to the same period last year. To further elevate this share, ADREC has set an ambitious target to increase the sector’s contribution by 33 percent over the next three years, aligning with Abu Dhabi’s goals for economic diversification.
ADREC leads a significant transformation in Abu Dhabi’s real estate sector, guided by four strategic pillars: Real Estate Strategy, Real Estate Promotion, Real Estate Regulation, and Real Estate Transactions Management. Each pillar is designed to advance the sector’s ecosystem, ensuring that real estate becomes a robust contributor to Abu Dhabi’s economy.
Furthermore, ADREC provides seamless services to all stakeholders. These efforts prioritize efficiency, transparency, and accessibility, making Abu Dhabi’s real estate sector a tech-enabled cornerstone of the emirate’s non-oil economy.
In addition to that ADREC is championing technological advancements to future-proof the sector. Our investment in PropTech and digital innovation is transforming operations, positioning real estate as a tech-enabled cornerstone of Abu Dhabi’s non-oil economy. By prioritizing both technology and efficiency, we are ensuring that the sector’s growth not only bolsters GDP but also contributes to Abu Dhabi’s vision of a diverse and resilient economy.
How has the introduction of the first residential rental index impacted market transparency and stability? Are there any insights you can share about its reception so far?
The launch of Abu Dhabi’s first residential rental index is a milestone in our journey toward greater market transparency and stability. The index provides clear, data-driven insights into rental values across different regions, empowering tenants and landlords alike to make informed decisions. This tool has proven instrumental in reducing disputes, fostering a fairer rental environment, and aligning with ADREC’s commitment to a transparent, efficient real estate market.
Feedback from stakeholders has been overwhelmingly positive. Tenants appreciate the clarity, aiding them in budgeting and negotiations, while landlords benefit from a reliable benchmark for setting competitive rents. Real estate professionals also value the index as a robust tool for market analysis and forecasting. Its user-friendly platform, complete with an interactive map and area-specific data, has been particularly well-received, ensuring that all market participants can easily access and navigate this valuable resource. Ultimately, the residential rental index is a critical step in promoting a stable and transparent real estate market, aligning with Abu Dhabi’s broader economic goals.
Could you tell us more about the digital transformation initiatives ADREC is implementing? How are these innovations improving customer satisfaction and streamlining real estate processes?
ADREC’s digital transformation journey is redefining customer satisfaction and operational efficiency in Abu Dhabi’s real estate sector. Platforms like ADREC platform enable users to seamlessly access property listings and transaction histories, delivering the transparency and ease of access that investors demand. In 2024, ADREC’s digital initiatives achieved an impressive 60 percent reduction in service time, significantly enhancing efficiency across the sector.
By the end of 2024, digital transactions accounted for 97 percent of all real estate processes, with customer satisfaction levels reaching 92 percent. ADREC is committed to further improvement, aiming for 100 percent digital transaction completion by 2026 to maximize convenience and satisfaction for all stakeholders. Additionally, the Real Estate Dispute Settlement Centre (Taswya) has accelerated dispute resolution processes, building confidence and reinforcing market stability.
Looking ahead, ADREC is preparing to roll out additional digital innovations that promise to be transformative for the industry. These initiatives are designed to set a new standard for market operations, positioning ADREC as a model of efficiency and customer-centric innovation. Through these advancements, ADREC aims not only to elevate real estate service delivery but also to establish Abu Dhabi as a global leader in digital transformation within the real estate sector.
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