Abu Dhabi Real Estate | Strong Growth in Demand During Q1 2024

Specialized reports have addressed the performance of the real estate sector in the Emirate of Abu Dhabi during the first quarter of 2024, revealing a clear increase in real estate prices in several areas compared to the last quarter of the previous year, especially in upscale neighborhoods that include facilities and services with international standards, reflecting the high demand for real estate in Abu Dhabi.

Through data analysis, it became clear that the first quarter of 2024 witnessed strong growth in demand for Abu Dhabi real estate, which positively affected real estate prices, transaction volume, and total transaction value. It is also expected that this strong performance will continue during 2024, enhancing Abu Dhabi's position as a magnet for real estate investments.

Both "Al Reef" and "Al Ghadeer" topped the list of most sought-after areas for buying low-priced apartments, while "Al Reem Island" and "Al Raha Beach" ranked first in the category of buying luxury apartments.

On the other hand, both "Al Reef" and "Khalifa City" emerged as the best options for those looking for low-priced villas, while "Yas Island" and "Saadiyat Island" were the most sought-after areas by those looking for luxury villas in Abu Dhabi.

What about real estate prices in Abu Dhabi?

Regarding real estate prices in Abu Dhabi, according to the data, the prices of luxury apartments and villas in the most sought-after areas increased by about 6% during the first quarter of 2024, including "Saadiyat Island," where luxury apartment prices rose by about 3.64%, and luxury villa prices in this area increased by about 5.53%.

Meanwhile, the average selling price per square foot for low-priced apartments and villas in Abu Dhabi decreased by about 4%. Despite this, the "Al Ghadeer" area recorded a rise in apartment prices by about 6.02%, and villa prices rose by about 5.19% during the first three months of 2024.

Regarding the number of real estate sales transactions in Abu Dhabi, the data showed that the first quarter of 2024 recorded more than 4674 residential property sales transactions, distributed between 1167 ready property sales transactions and 1752 off-plan unit sales transactions, with a total value exceeding 9.6 billion UAE dirhams. These numbers clearly indicate the strong performance of the real estate market in Abu Dhabi and the great confidence of investors in the sector.

As for the returns on investment in Abu Dhabi villas, the data showed that the "Al Ghadeer" area achieved the highest return on investment at 7.65% within the low-priced villa category, while "Yas Island" recorded returns of 6.91% on investment in luxury villas.

According to the issued data, the average rent for luxury apartments witnessed a clear growth rate of 9%, especially in "Saadiyat Island" and "Al Raha Beach," while the rents of low-priced apartments saw a price increase of about 7% in the "Al Muroor" and "Al Khalidiyah" areas.

Real estate experts indicate the emergence of Abu Dhabi as an emirate full of opportunities, being a major market for real estate investment with the massive projects recently launched, such as Jubail Island and Ramhan Island, making us affirm that the real estate sector in the capital will be more prosperous and heralds a bright future.

Edited by: Imtilak Real Estate©