Abu Dhabi property market soars in H1 2024, shows new report

Abu Dhabi’s property sales and rental sectors have shown strong growth in H1 2024, revealed Bayut, UAE’s leading property portal.

The figures were shared in a comprehensive report featuring search and pricing trends in H1 2024 in the UAE’s capital city.

Bayut’s report revealed notable increases in asking sales prices across both affordable and luxury segments, indicative of heightened demand for high-quality properties.

Haider Ali Khan, CEO of Bayut and CEO of Dubizzle Group MENA, commented on the findings: “Over the past six months, we have seen the Abu Dhabi real estate market grow, stabilise and then grow again. Recent industry reports by the Abu Dhabi Real Estate Centre (ADREC) confirm that foreign direct investment is at an all-time high in the capital, cementing the emirate’s position as a strong contender among global property markets in the last 18-24 months. The diverse range of off-plan projects available in Abu Dhabi has significantly contributed to this heightened interest from international HNWIs and investors, particularly in the luxury segment.

“With the government proactively bringing in more regulation and transparency, we can expect the properties in the capital to continue drawing both local and international interest. Demand has also remained high on Bayut throughout 2024 with traffic increasing steadily month on month, and we can expect this trend to continue into the second half of the year as well.”

Here are some of the highlights of the report:

Key trends in property sales

• Al Reef and Al Ghadeer emerged as the leading areas for affordable apartments, while Al Reem Island and Al Raha Beach attracted buyers interested in luxury apartments. For budget-friendly villas, Al Reef and Khalifa City were preferred, whereas Yas Island and Saadiyat Island were favoured by high-net-worth individuals (HNWIs) seeking luxury villas.
• Luxury villas in Yas Island saw a 10.3 per cent price increase, while luxury apartments in Saadiyat Island recorded a 6 per cent rise.
• Premium flats in Yas Island and Al Reem Island experienced price hikes of 2.77 per cent and 2.75 per cent, respectively.
• Apartments in Al Ghadeer saw a 9.5 per cent price increase, with affordable flats in Al Reef rising by 2.16 per cent.
• Budget-friendly villas in Al Ghadeer and Al Samha reported significant price hikes of 6.10 per cent and 5.57 per cent, respectively, while villas in Khalifa City saw a 1.73 per cent decrease.
• Al Ghadeer offered a high ROI of 8.52 per cent for affordable apartments, and Al Reem Island provided a strong projected rental yield of 6.94 per cent for luxury apartments. Hydra Village led ROI for affordable villas at 8.08 per cent, while Yas Island luxury villas had an ROI of 6.89 per cent.
• Affordable off-plan apartment projects Royal Park and Bloom Living were popular among budget buyers, while luxury buyers favoured island community developments such as Yas Bay, City of Lights, and Saadiyat Cultural District.
• Fay Al Reeman 2 was preferred for small-ticket investments in off-plan villas, with Yas Acres and Murjan Al Saadiyat popular for luxury villas.

Trends in property rentals across Abu Dhabi

• Khalifa City and Al Khalidiyah were top choices for affordable apartment rentals, while Mohammed Bin Zayed City (MBZ City) and Khalifa City were popular for renting affordable villas. Luxury renters preferred Al Reem Island and Al Raha Beach for apartments, with Yas Island and Al Raha Gardens leading the market for high-end villas.
• Luxury apartment rentals in Saadiyat Island and Al Raha Beach saw significant growth of up to 21 per cent. Affordable apartment rentals appreciated by more than 7 per cent in areas like Al Muroor.
• Rental rates for affordable villas saw a moderate increase of around 7 per cent, except in Shakhbout City, which recorded a minor decline. Upscale villas, particularly in Al Bateen, experienced up to a 12 per cent rent hike, reflecting strong market demand.

Market performance and outlook

According to Bayut’s findings, the Abu Dhabi real estate market has demonstrated strong performance in the first half of 2024, making it an attractive option for both local and international investors.

The sales sector has shown significant growth, indicating a positive outlook for the remainder of the year.

The residential rental market also appears promising, with expected upward movement in the coming months.

Read: Global HNWIs ready to spend $408.3m on residential real estate in Abu Dhabi, reveals report