The most popular purchase in Abu Dhabi turned out to be villas, as almost 76% of the total sales transactions were villas.
By 2027, there will be a total of 33,700 homes constructed to cater to high-end customers who are looking for sea views and quality amenities.
A study was recently conducted by Knight Frank on the residential market of Abu Dhabi in summer 2023.
It showed that there has been substantial growth in the luxury residential and real estate sector of the city so far this year.
The analysis shows that in the second quarter, a total of 6,000 apartments and 6,000 villas had been launched, which were spread across 15 residential projects.
Most of these projects were catering to high-end customers who are looking for views of the sea and good amenities.
The biggest price growth in the year’s second quarter was recorded by Al Reem Island. The total number of sales transactions were 816, which had a value of AED 2.1 billion.
24% of these sales transactions were apartments, while villas made up almost 76% of the transactions.
The total value of transactions reported by Saadiyat Island was about AED 1.2 billion, in which 68% of the total sales were of apartments that proved to be the most popular.
With the value of total transactions at AED 919 million, Yas Island took the third spot and 65% of the total sales comprised of villas.
There was a 103% increase in the total value of transactions for Abu Dhabi as a whole as opposed to the previous year and their total value was around AED 6.1 billion.
The Abu Dhabi market
When it comes to luxury and wealth management, many view Dubai as the preferred location in the United Arab Emirates.
A number of high net-worth individuals (HNWIs) give preference to Abu Dhabi when it comes to high-end luxury living.
Faisal Durrani at Knight Frank, who serves as the Head of Research for North Africa and Middle East, said that a significant reason behind buyer’s behavior is the stability of the market in Abu Dhabi as opposed to 10 years earlier.
The report revealed that the villas that are most sought after in the city of Abu Dhabi are the ones on Saadiyat Island.
The prices of these villas are actually 20 times that of the average income of households. According to the data, AED 979 is the median price of real estate property in Abu Dhabi per square foot in 2023.
Since the COVID-19 pandemic, the real estate market in the UAE has seen some stability and the freehold areas in Abu Dhabi show that the market has been solid due to the construction of a limited number of homes.
To keep up with the international demand, it is expected that 33,700 homes will be constructed by the end of 2027, with villas being the majority.