Abu Dhabi luxury realty records price surge amid global investor influx

Abu Dhabi's property market recorded resilient growth in the first quarter as the UAE's capital city continues to attract global investors amid a surge in sales prices, particularly in upscale neighbourhoods.

Data from Bayut, a leading property portal in the UAE, shows that sales prices for luxury apartments and villas in popular neighbourhoods have increased by up to six per cent in the first quarter of 2024. Saadiyat Island has seen moderate price hikes, with luxury apartments experiencing a 3.64 per cent surge and premium villas witnessing a 5.53 per cent appreciation.

“The data analysis for the first quarter indicates a steady growth trajectory in Abu Dhabi's real estate market. The rise in property prices, transaction volume and total transaction value reflects the market's robust and consistent performance. These trends are anticipated to persist in the subsequent quarters, solidifying Abu Dhabi's position as an attractive destination for real estate investments,” the property portal said.

The data derived from a comprehensive analysis of market dynamics and pricing trends within Abu Dhabi's sales and rental sectors for the first quarter shows those sales price-per-square-foot for affordable apartments and villas has generally declined moderately by up to 4.0 per cent. However, Al Ghadeer has recorded a price appreciation of 6.02 per cent for apartments and 5.19 per cent for budget-friendly villas during the first three months of 2024.

Al Reef and Al Ghadeer areas have emerged as the top choices for those seeking affordable apartments. For luxury apartment purchases in Q1 2024, high searches have been recorded for units in Al Reem Island and Al Raha Beach. For villas, buyers on a budget have focused their interests in Al Reef and Khalifa City, whereas Yas Island and Saadiyat Island have been the preferred choices for luxury buy-to-let villas in Abu Dhabi, Bayut data revealed

As per Abu Dhabi’s trusted digital real estate ecosystem DARI, there were over 4,674 residential property sales transactions valued at over Dh9.6 billion in Q1 2024 - a clear indication of the market's strong performance and investors' confidence in the city's real estate sector. This includes 1,167 ready properties and 1,752 off-plan units.

Haider Ali Khan, CEO of Bayut and CEO of Dubizzle Group Mena, said Abu Dhabi’s real estate market has carried the momentum of its strong 2023 performance into the first quarter of 2024. “When we look at the current market trends, it’s quite clear that there is increasing confidence among both local and international HNWIs that Abu Dhabi real estate is abundant with opportunity and is a prime market for investment. Looking to the future, with mega-projects projects such as Jubail Islands and Ramhan Islands coming to fruition, it’s fair to say that exciting times lie ahead for the capital’s thriving property sector,” said Khan.

There has been a moderate increase of up to 5.0 per cent per cent in the rental rates of affordable villas. One exception is the neighbourhood of Madinat Al Riyadh, which recorded an uptick of 12.9 per cent in rents, where landlords have listed properties at higher price points. Conversely, high-end villas have seen a minor to moderate rental price surge. Al Bateen, in particular, experienced a considerable surge of 8.15 per cent for luxury homes, potentially due to strong demand in the market.