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Abu Dhabi villa prices rise 8.2% in a year

Saadiyat Island saw the highest annual capital gains this quarter, ValuStrat data shows

Home prices in Abu Dhabi grew faster in the third quarter than the previous quarter, data showed on Monday.

The ValuStrat Price Index increased 1.7 per cent quarterly and 5.3 per cent annually to achieve 120.7 points, as compared to 100 base points at the start of 2021.

The valuation-based index saw villa prices up 2.2 per cent quarter on quarter, and 8.2 per cent annually to achieve 128.3 points. The apartment segment accelerated one per cent quarter on quarter and 2.2 per cent year on year, to accomplish 113.4 points.

The weighted average home value this quarter was Dh9,924 per square metre (Dh922 per square foot), apartments stood at Dh10,667 per square metre (Dh991 per square foot), and villas at Dh8,127 per square metre (Dh755 per square foot).

Saadiyat Island saw the highest annual capital gains this quarter, as villa prices rose 19.9 per cent. Villas in Al Raha saw growth of 7.5 per cent year on year, and Mohammed Bin Zayed City up 3.5 per cent year on year. House prices in Hydra Village and Al Reef remained stable when compared to last year. Best performing apartments in terms of annual capital gains were located in Al Reef (4.9 per cent), Saadiyat Island (4.5 per cent), and Al Muneera (3.6 per cent).

The VPI for rental values in Abu Dhabi observed steady growth of 5.8 per cent annually and 2.6 per cent quarterly to reach 115 points, compared to 100 points as of Q1 2021.

Villas were at 121.6 points as rents rose 5.7 per cent annually and 2.7 per cent quarterly. Apartments registered 109.2 points, up 6.0 per cent year on year, and 2.4 per cent quarter on quarter. Gross yields averaged 7.5 per cent, with apartments at 7.9 per cent and villas at 6.5 per cent. The average occupancy rate stood at 85.7 per cent.

Abu Dhabi saw the completion of 1,442 apartments and 593 villas during the first three quarters of 2024, representing 22.8 per cent of the expected residential pipeline for the whole of 2024. Scheduled project completions for 2024 total 8,907 residential units.

The average price for off-plan properties stood at Dh18,384 per square metre (Dh1,708 per square foot), an increase of 32.5 per cent quarterly and 33 per cent annually. The average ticket size of off-plan homes fell 4.6 per cent annually to Dh3.4 million. Abu Dhabi’s off-plan transaction volume, which represented 41.2 per cent of overall sales, declined 36.7 per cent quarter on quarter and 58.6 per cent year on year, owing to fewer project launches this year.

Average prices for ready homes averaged Dh11,507 per square metre (Dh1,069 per square foot), increasing 6.4 per cent yearly but fell 3.6 per cent on a quarterly basis. The average ticket size of ready homes reached Dh2.2 million, down 3.3 per cent quarter on quarter but remained stable annually.

Transaction volume for ready properties grew 18.9 per cent quarter on quarter and 51.1 per cent year on year.

In the third quarter of 2024, the Abu Dhabi real estate market witnessed 2,594 mortgage transactions across all asset classes compared to 1,495 cash transactions of ready properties. The total sales value attributed to mortgage transactions stood at Dh13.5 billion, with cash transactions totalling Dh4.2 billion

“Consistent growth across residential, office, industrial, and hospitality sectors underscores Abu Dhabi’s mature and stable market conditions, solidifying its competitive position within the UAE’s real estate landscape,” said Haider Tuaima, director & head of real estate research, ValuStrat.