Property Market in Abu Dhabi on Solid Growth Track due to Demand

Property Market in Abu Dhabi on Solid Growth Track due to Demand

New data shows that sale prices for villas and luxury apartments in Abu Dhabi’s sought-after neighborhoods have recorded a 13% increase.

There has been an upward trend seen in the prices of properties in Abu Dhabi, which could benefit those who are looking to rent or sell their properties.

The trend

High demand resulted in pushing up sales prices in several areas, but this trend was most noticeable in upscale neighborhoods that offer high-end facilities and amenities.

In terms of affordable apartments, the most searched areas are Al Reef and Al Ghadeer. High search volumes were also generated by luxury apartment seekers for units in Saadiyat Island, Yas Island an Al Reem Island.

Saadiyat Island was the main highlight as per data, as luxury apartments recorded an increase of 8.73% in prices, while premium villas recorded a hike of 12.9%.

Highly searched areas that have affordable apartments saw their sales price per-square-foot experience moderate declines of around 2.05%.

As far as affordable villas are concerned, they have recorded a minor 3.95% increase in the prices per-square-foot.

The most prominent appreciations took place in Al Samha, with Khalifa City and Al Ghadeer taking the second and third spot.

The ROI

As per the digital real estate ecosystem of Abu Dhabi, DARI, the residential sales transactions in 2023, both off-plan and ready, were around 14,000, which were valued at AED 52 billion.

As far as apartments’ projected ROI is concerned, the highest rental yield in the category of affordable housing was recorded in Al Reef, which was around 8.04%.

Investors continued to enjoy a healthy ROI of 6.65% in Al Reem Island especially in terms of luxury flats for sale.

There were also positive statistics seen in terms of the ROI recorded in the popular villa communities of Abu Dhabi.

A 6.78% ROI was offered for houses by Hydra Village in the affordable category, while the highest ROI was offered by Al Raha Gardens for buy-to-let villas part of the luxury villa category of about 6.04%.

The rental prices

There have also been moderate to major increases in the rental prices of apartments located in luxury areas that are most searched for.

They have gone up by nearly 14%, which is mostly seen in island communities. As for affordable apartment rentals, they have remained competitive for the most part.

As a matter of fact, some areas have actually recorded a price drop of 3%. There have also been minor to major upticks in rental prices for affordable villas of almost 4.91%.

Meanwhile, high-end villas have seen a major rise in rental costs. There has been a 12.7% increase in Yas Island, while a 22.2% increase has been recorded in Saadiyat Island for luxury houses.

This is mostly because of the solid demand that has been seen. Abu Dhabi’s property sale market has recorded growth due to several factors.

This also includes investors benefitting from the favorable conditions of the market and property seekers have also become homeowners because of the steady rise in the rental sector of the capital.

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