Abu Dhabi’s property market has witnessed strong growth so far this year amid an increase in transparency and strong investments from local and international players. In its latest Q3 market report, Bayut, a leading property portal in the UAE, reveals key property trends in Abu Dhabi, showcasing strong performance in both the capital’s affordable and luxury segments. The report comprehensively analyzes the relationship between economic variables and demographic trends, which have been instrumental in shaping the city’s real estate landscape.
“If we look at just the last quarter, we have had over 3.5 million visits on our platform for listings in Abu Dhabi, showing just how strong the demand for properties in the capital is even during summer months. The government’s efforts to enhance data accessibility and push forward digital initiatives, like AI-powered services and the comprehensive DARI real estate platform, have definitely contributed to this,” stated Haider Ali Khan, CEO of Bayut and head of Dubizzle Group MENA.
Abu Dhabi is also gearing up to attract more foreign investments by streamlining regulations and maintaining a strong focus on transparency through the Abu Dhabi Real Estate Center (ADREC). Therefore, the property market is set for growth by embracing global standards and leveraging trends like smart city projects and sustainability across Abu Dhabi.
Noting the growth and development, here are the key trends across the Abu Dhabi property market in Q3 2024.
Key locations to buy property in Abu Dhabi
During Q3 2024, Al Reef, Al Ghadeer, and Masdar City emerged as key locations among those looking to purchase affordable apartments in the emirate. For those looking for luxury apartments, Al Reem Island, Al Raha Beach and Yas Island have remained popular options.
Villas for sale in Al Reef, Khalifa City, and Al Shamkha have garnered the most investor interest in the affordable segment. In addition, the luxury villa market has continued to attract buyers, with Yas Island, Al Raha Gardens, and Saadiyat Island taking the lead.
When it comes to price changes, the average prices per square foot for affordable apartments have mainly experienced minor upticks of over 2 percent. As for luxury apartments, the report revealed price hikes of up to 8 percent with Saadiyat Island witnessing the most growth in prices.
The sales market for affordable villas has witnessed a steady price increase, reaching up to 6 percent, while prices for luxury villas have continued to appreciate, with the average price per square foot climbing steadily up to 5 percent.
Return on investment trends for property salesÂ
Bayut’s report also revealed that Al Reef and Al Ghadeer reported the highest yields for affordable apartments, offering returns of 8.86 percent and 8.20 percent, respectively.
Investors and HNWIs across Abu Dhabi’s property market should note that luxury apartments have enjoyed up to 7.22 percent and 6.99 percent returns for premium properties in Yas Island and Al Reem Island.
In the affordable segment, villas in Hydra Village generated attractive yields of 8.06 percent. On the other hand, affordable villas in Abu Dhabi Gate City offered 6.69 percent returns. Yas Island was the most desirable location for luxury villas, with an ROI of 6.50 percent, closely followed by Al Raha Gardens, which offered a 6.42 percent ROI.
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Popular off-plan projects in Abu Dhabi
In affordable apartments, Royal Park in Masdar City stood out in Q3 as one of the most searched-for options for affordable apartment buyers. Meanwhile, the City of Lights in Al Reem Island has remained the top pick for luxury apartment buyers.
As for villas, Bloom Living emerged among the most popular affordable options in Abu Dhabi. Meanwhile, Saadiyat Lagoons in Saadiyat Island was the standout project for luxury villa buyers.
As 2024 enters its final quarter, Abu Dhabi’s residential property market remains strong, showing no signs of slowing down. The combination of ongoing government support, continuous infrastructure development and a steady influx of foreign investment points to a bright outlook for both investors and homeowners in the years ahead.
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