Abu Dhabi Luxury Real Estate Experiences Price Surge Amid Global Investor Interest

Abu Dhabi Luxury Real Estate Experiences Price Surge Amid Global Investor Interest

The real estate market in Abu Dhabi has experienced significant growth in the first quarter of 2024, driven by strong interest from foreign investors and rising sales prices, especially in high-end neighborhoods.

Data from Bayut, a leading UAE real estate portal, indicates an increase of up to 6% in luxury apartment and villa sales prices in sought-after areas. On Saadiyat Island, luxury villas appreciated by 5.53%, while high-end apartments saw a 3.64% increase.

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Bayut stated that the data points to a steady upward trajectory in Abu Dhabi’s real estate market, with growth in property prices, transaction volume, and total transaction value. These trends are expected to continue, affirming Abu Dhabi’s status as an appealing destination for real estate investments.

Price per square foot for more affordable villas and apartments experienced slight declines of up to 4.0%, while Al Ghadeer observed price increases of 6.02% for apartments and 5.19% for more budget-friendly villas in the first quarter.

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The neighborhoods of Al Reef and Al Ghadeer have become top choices for those seeking affordable apartments. Luxury apartment purchases in Q1 2024 were concentrated in Al Raha Beach and Al Reem Island. In the villa market, budget buyers focused on Al Reef and Khalifa City, while luxury villa investments were concentrated in Yas Island and Saadiyat Island.

According to DARI, Abu Dhabi’s digital real estate ecosystem, over 4,674 residential property sales transactions valued at more than AED 9.6 billion took place in Q1 2024. This reflects the market’s strong performance and investors’ confidence in Abu Dhabi’s real estate sector, comprising 1,167 ready properties and 1,752 off-plan units.

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Haider Ali Khan, CEO of Bayut and Dubizzle Group Mena, noted that Abu Dhabi’s real estate market carried forward its momentum from a strong 2023 into the first quarter of 2024. He highlighted the increasing confidence among local and international high-net-worth individuals in Abu Dhabi’s real estate opportunities and investment prospects.

Al Reef’s affordable apartments offer an estimated 8.30% return on investment (ROI), while Al Reem Island’s luxury apartments deliver a strong 6.9% projected rental yield.

Yas Island provided the highest ROI of 6.91% for luxury villas, while Al Ghadeer offered a 7.65% ROI for affordable homes.

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In Abu Dhabi, Royal Park and Bloom Living emerged as prime choices for affordable off-plan apartments. Luxury property buyers were drawn to island community projects such as Saadiyat Cultural District and Yas Beach Residences. Search trends also revealed that Fay Al Reeman 2 is a favored option for budget-friendly off-plan purchases, while Yas Acres and Murjan Al Saadiyat’s opulent off-plan villas attracted significant buyer interest.

Mohammed Bin Zayed City and Khalifa City were top choices for affordable villa rentals, while Khalifa City and Al Khalidiyah were popular for budget-friendly apartments. For upscale villas, Al Raha Gardens and Yas Island were the most sought-after locations, while Al Reem Island and Al Raha Beach were the top choices for luxury apartments.

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Rental rates for luxury apartments rose by up to 9.0% in affluent neighborhoods, particularly on Saadiyat Island and Al Raha Beach. Budget apartment rental prices increased by around 7.0% in areas such as Al Muroor and Al Khalidiyah.

Rental prices for budget-friendly villas increased moderately by up to 5.0%. The Madinat Al Riyadh neighborhood saw a 12.9% rent increase, reflecting higher demand and landlords listing properties at higher prices. Al Bateen experienced an 8.15% increase in luxury home prices, further highlighting high demand in the luxury home market.

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