The Abu Dhabi real estate sector shows promising signs of growth in the foreseeable future, with a gradual upward trajectory anticipated in the coming months, according to the Asteco Q1 2024 real estate report.
Asteco said upmarket areas had seen rental increases of 7 to 10 per cent and identified the relative merits of villas and apartments for property sales in Abu Dhabi.
The report indicates that during the first quarter, the Abu Dhabi market saw the completion of 800 residential units across various Investment Zones with a significant portion concentrated in Al Raha Beach.
Abu Dhabi real estate report
The most noteworthy development was the launch of Yas Canal, a new mega villa project located within the same area.
This project is expected to be completed by Q4 2027 and aims to deliver 1,146 units that are exclusively available to UAE nationals.
Throughout Q1 2024, the rental market for villas and apartments remained generally stable, with prime and high-end developments experiencing significant demand, leading to rental increases of 7 per cent to 10 per cent compared to the previous year, particularly for new contracts.
The sales market of Abu Dhabi witnessed a significant increase in transactions during the first quarter of 2024.
Approximately 2,660 deals were recorded for apartments and villas, marking a notable 17 per cent rise compared to the same period last year.
Off-plan sales constituted a substantial portion of these transactions, accounting for about 1,840 deals, or approximately 69 per cent of the total representing 2 per cent growth from the previous quarter.
Apartment sales comprised approximately 73 per cent of the total off-plan and nearly 78 per cent of completed property transactions during this period.
While average apartment sales prices across the market remained relatively unchanged, there was a notable surge observed within the upper and luxury segments located on Yas and Saadiyat Islands.
Average villa sales prices experienced modest increases, ranging between 1 per cent and 3 per cent on a quarterly basis. However, year-on-year growth was more substantial, reaching 10 per cent to 15 per cent.
The upward trend in rental rates for high-quality office space that began in 2023 continued into 2024.
Some developments saw increases ranging from 5 per cent to 7 per cent, influenced by factors such as unit size and payment terms.
The limited availability of premium office space in Abu Dhabi, coupled with growing demand from expanding businesses driven by government efforts to attract foreign investment, has contributed to the surge in rental rates.
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