There has been a notable uptick in the prices and rents of luxury properties in Abu Dhabi, while the affordable segment has sustained the trend with surges in sales and rental prices in certain areas.
dubizzle, UAE’s popular property listing platform, revealed this in its analysis of the latest trends for the third quarter of 2024.
Abu Dhabi real estate trends
Al Reem Island and Yas Island continued to attract buyers for luxury villas and apartments, while Al Reef was the destination of choice for those seeking affordable areas for both.
Yas Island recorded an average sales price of AED 4.25 million and an average rent of AED 226,000. This quarter, Yas Island, Al Mushrif, and Al Rahba have been the most sought-after areas for renting luxury villas.
Al Reem Island, Yas Island, and Al Raha Beach have consistently ranked among the most popular luxury areas to buy apartments and Q3 proved no different. Al Reem Island had an average annual rent of AED 99,000 and a sales price averaging AED 1.39 million.
For affordable villas, Al Reef had an average sale price of AED 2.16 million, followed by Al Shamkha and Zayed City, while tenants have preferred Mohammed Bin Zayed City, Madinat Al Riyadh, and Shakhbout City. The average rent at Mohammed Bin Zayed City was AED 144,000.
Al Reef, Masdar City, and Al Ghadeer were the top areas for affordable apartments, while Khalifa City topped the list for affordable rental apartments with an annual rent of AED 44,000.
Overall, the trends reflect the confidence of stakeholders in the market. Investment-friendly policies, transaction transparency, digitalisation of processes and investment security have remained significant factors in cementing this confidence.
Haider Ali Khan, CEO of Bayut and dubizzle and CEO of Dubizzle Group MENA, commented: “Abu Dhabi’s real estate market has thrived in Q3 2024, outpacing previous quarters, particularly in the luxury segment. Areas like Yas Island and Al Reem Island have emerged as hotspots, showing strong demand and impressive returns.
“DARI also reports a significant rise in the sales value of off-plan projects, increasing from AED 4.5 billion in Q2 2024 to AED 5.4 billion in Q3 2024. This growth demonstrates confidence in the market, which will drive its continued upward momentum. The capital’s economic stability and premier urban experience, along with landmark projects like the upcoming Jubail Islands, continue to attract international investment, fuelling market growth.”
The report also highlighted that Al Jubail Island provided the highest investment return of 6.82 per cent for luxury villas, while Al Reem Island led the luxury apartment market with an estimated ROI of 6.85 per cent.
For off-plan projects, Royal Park in Masdar City emerged as the most popular affordable apartment project, with an average sales price of AED 883,000. Al Reeman 2 in Al Shamkha remained the most searched project for affordable villas, with prices averaging AED 4.05 million.
For luxury off-plan apartment projects, the City of Lights in Al Reem Island led the list with an average price of AED 1.41 million. Noya Viva in Yas Island led the luxury villa segment with an average price of AED 3.37 million.
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