Abu Dhabi real estate market shows a huge growth in the the first half of 2024 As per the recent report from the real estate website Bayut.
The analysis shows a notable rise in average rents and sales prices in this environment both significant foreign investment and increasing demand for housing. The data that was made public last week stated that the annual growth in rent for luxury flats was 20%, while the annual growth in rent for luxury villas was 12%. For flats and villas in the affordable category, the rent increased by 9% and 7%, respectively.
Important Developments In Real Estate Sales
While Al Raha Beach and Al Reem Island attracted homebuyers looking luxury flats, Al Reef and Al Ghadeer emerged as the top locations for affordable apartments. Wealthy people (HNWIs) looking for luxury villas preferred Yas Island and Saadiyat Island, while Al Reef and Khalifa City were the most popular places for affordable villas.
The price of luxury villas on Yas Island increased by 10.3%, while the price of luxury apartments on Saadiyat Island increased by 6%. There have been 2.77 percent and 2.75 percent price increases for premium apartments on Yas Island and Al Reem Island, respectively. The cost of apartments increased by 9.5 percent in Al Ghadeer and 2.16 percent for more reasonably priced units in Al Reef.
Affordable villas in Al Samha and Al Ghadeer experienced notable price increases of 5.57 and 6.10 percent, respectively, while villas in Khalifa City saw a decline of 1.73 percent. For affordable apartments, Al Ghadeer had a good return on investment (ROI) of 8.52%, while Al Reem Island offered an impressive expected rental income of 6.94% for luxury flats. The ROI for luxury villas on Yas Island was 6.89%, whereas Hydra Village had the highest ROI for cheap villas at 8.08 percent.
The island community developments of Yas Bay, City of Lights, and Saadiyat Cultural District were preferred by premium buyers, while budget buyers were attracted to affordable off-plan apartment projects like Royal Park and Bloom Living. For low-cost off-plan villa investments, Fay Al Reeman 2 was the go-to option; for luxury villas, Yas Acres and Murjan Al Saadiyat were popular.
Trends In Abu Dhabi Real Estate Rentals
Mohammed Bin Zayed City (MBZ City) and Khalifa City were popular choices for renting reasonably priced villas, while Khalifa City and Al Khalidiyah were top picks for reasonably priced apartment rentals. For apartments, luxury tenants preferred Al Raha Beach and Al Reem Island, while Yas Island and Al Raha Gardens controlled the market for upscale villas.
Up to 21% rise has been noted in luxury unit rentals on Saadiyat Island and Al Raha Beach. In places like Al Muroor, the value of affordably priced apartment rentals increased by over 7%.
Trends in Abu Dhabi real estate rentals
Mohammed Bin Zayed City (MBZ City) and Khalifa City were popular choices for renting reasonably priced villas, while Khalifa City and Al Khalidiyah were top picks for reasonably priced apartment rentals. For apartments, luxury tenants preferred Al Raha Beach and Al Reem Island, while Yas Island and Al Raha Gardens controlled the market for upscale villas.
Up to 21% rise has been noted in luxury unit rentals on Saadiyat Island and Al Raha Beach. In places like Al Muroor, the value of affordably priced apartment rentals increased by over 7%. All throughout the city of Shakhbout City, the rental price for affordable villas increased by about 7%, while there was a slight decrease. Rent increases for upscale villas, especially in Al Bateen, reached up to 12%, indicating strong market demand.
Performance and outlook of the market
The real estate market in Abu Dhabi has performed well in the first half of 2024, according to Bayut’s findings, making it an excellent option for both domestic and foreign investors. The sales industry has expanded significantly, which speaks well for the rest of the year. Additionally, the residential rental market looks positive, with growth expected in the upcoming months.
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