The Abu Dhabi’s real estate market is set for continued growth in 2024, supported by government initiatives and robust economic fundamentals, according to the Asteco Q2 2024 real estate report.
According to the report, the Abu Dhabi market saw the delivery of around 2,400 residential units, particularly in Noya on Yas Island, Jubail Island, Masdar City, and Al Raha Beach.
Several residential and mixed-use projects are currently in the planning stages, with public launches expected throughout 2024, further broadening Abu Dhabi’s real estate landscape.
Abu Dhabi real estate sector
In the rental sector, the market continued to record strong activity, particularly in upscale apartment and villa locations.
Average apartment rents saw modest quarterly and annual increases of 1 per cent and 2 per cent, respectively. Villa rents maintained a steady performance, reflecting a 5 per cent increase over the past 12 months.
Landlords in Abu Dhabi’s prime residential areas, particularly in waterfront communities such as Al Raha Beach, Saadiyat, Yas, and Al Reem Islands, benefited from strong occupancy rates and high demand, with some properties even having waiting lists.
Comparable mid-end properties in prime investment areas experienced annual growth of over 5 per cent.
Properties at the lower end of the market exhibited stability, primarily due to landlords offering attractive lease terms to entice tenants.
The market also saw a steady influx of private and corporate investments, fuelling demand for high-quality office spaces, and leading to significant rental growth.
Grade A offices in prime locations experienced a substantial (circa 10 per cent) increase compared to the previous year, with robust quarterly growth ranging between 3 per cent and 8 per cent, especially for new contracts.
In Q2 2024, Abu Dhabi recorded 2,135 sales transactions, with off-plan sales accounting for 57 per cent. Apartments dominated off-plan and ready sales, comprising 85 per cent and 75 per cent of their respective segments, and experienced a 6.8 per cent quarterly increase.
Ready property transactions showed healthy growth at 2.8 per cent quarterly and 33.1 per cent annually. However, off-plan sales declined by 23.4 per cent annually due to fewer project launches compared to the previous year.
Apartment sales prices continued their upward trend with average quarterly and annual growth rates of 4 per cent and 5 per cent, respectively.
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