The residential sector in Abu Dhabi saw massive growth in sales last year according to new research from real estate firm Savills.
A total of 11,200 residential units were sold across the capital in 2023, an 83 percent increase compared to the previous year.
Demand has risen due to positive initiatives from the government, a thriving economy and new project launches.
Abu Dhabi villa, townhouse witness high sales as demand increases
“The growing demand has led to a spike in new project launches, with more than 8,000 units launched. Market transparency also improved over the course of the year, making it more appealing to a broader range of investors and end-users beyond the traditional investor segment. In 2023, the market had benefited from an increase in investments by foreign nationals and sustained demand levels from the Emirati population,” Stephen Forbes, Head of Savills Abu Dhabi said.
Villa and townhouse sales emerged as one of the most popular segments. 4,800 units were sold in this category, accounting for 43 percent of total sales. Demand was highest for projects on Saadiyat Island, Yas Island and Al Reem Island.
“Villa prices have appreciated across the emirate, with some locations recording higher gains than others. The average capital value for villas in the city grew by 6 percent y-o-y, to reach AED11,800/sqm, however some locations like Saadiyat Island and Yas Island recorded capital values as high as AED16,000/sqm,” Ali Ishaq, Head of Residential Agency at Savills Abu Dhabi added.
Apartment costs rise 6% on average, rentals remain stable
Apartments also saw strong demand, making up 57 percent of transactions, the report said, adding that several notable apartment projects were launched last year including developments by Aldar Properties and Reportage Real Estate.
Capital values for apartments increased 6 percent on average while rental values remained relatively stable. Average capital values for apartments in the emirate is at AED14,800/sqm with some areas seeing 18 percent YoY growth.
“The non-oil sectors have seen significant expansion over the past two years, remained healthy, and are well positioned to grow over the next twelve months, affecting the real estate sector positively,” Swapnil Pillai, Associate Director of Research at Savills Middle East said.
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