Abu Dhabi property market 2024: A year of growth and opportunity

Bayut has unveiled its 2024 Abu Dhabi Annual Property Market Report, highlighting significant growth in both affordable and luxury real estate sectors. The findings showcase robust demand, increasing property values, and thriving rental and off-plan markets.

In the affordable apartment segment, Al Reem Island emerged as the top choice for buyers seeking affordable, upscale options. Other popular areas included Al Reef and Al Ghadeer, where property prices per square foot rose significantly, with Al Ghadeer leading the way at a 19.8% increase. Baniyas, the only area to record a decline (-1.92%), may present promising opportunities for investors.

For luxury apartments, Al Raha Beach remained the most searched-for location, followed by Yas Island and Saadiyat Island, which saw the highest price appreciation at 32.4%.

In the affordable villa market, Al Reef stood out as the preferred community, while Khalifa City and Abu Dhabi Gate City also remained popular. Prices for affordable villas rose by up to 18%, with Al Ghadeer posting a 17.4% increase. Meanwhile, Yas Island dominated the luxury villa segment, reporting a price surge of 22.1%.

Return on investment (ROI) trends

Affordable apartments in Al Reef offered the highest average ROI at 8.64%, followed closely by Al Ghadeer at 8.41%. Luxury apartments in Yas Island yielded a 7.07% ROI, making it a top choice for high-end investors.

For affordable villas, Hydra Village led with an ROI of 8.09%, while Al Ghadeer provided solid returns at 6.53%. On the luxury front, villas in Yas Island and Al Raha Gardens offered impressive ROIs of 6.28% and 6.23%, respectively, solidifying their appeal among investors.

Off-plan market highlights

Abu Dhabi’s off-plan property market remained attractive in 2024, with notable projects in both affordable and luxury segments.

In the affordable apartment category, City of Lights on Al Reem Island, Al Reeman 1 in Al Shamkha, and the eco-friendly Royal Park in Masdar City gained significant traction. For luxury apartments, developments like Yas Bay, Saadiyat Island’s Cultural District, and Al Maryah Vista captured the attention of discerning investors.

In the villa market, affordable projects such as Reem Hills, Bloom Living, and Al Reeman 2 stood out, while luxury villa seekers gravitated towards Saadiyat Lagoons and Yas Acres for their opulence and world-class amenities.

Rental property market trends

Bayut’s analysis of the rental market revealed strong growth in 2024, especially in affordable areas. Al Reem Island, Khalifa City, Al Khalidiyah, and Al Shamkha topped the list for affordable apartment rentals, with prices for studio and one-bedroom units surging by over 18% in some locations.

For luxury apartment rentals, Al Raha Beach, Corniche Area, and Saadiyat Island were the top choices, with price increases ranging from 8% to 26%. Yas Island and Corniche Road also saw significant demand, with one-bedroom units on Saadiyat Island recording a 25% price hike.

Affordable villa rentals were led by Khalifa City, followed by MBZ City, Madinat Al Riyadh, and Al Reef, where rents surged up to 14%. On the luxury side, Yas Island and Al Bateen attracted high-end renters, with six-bedroom villas in Al Bateen seeing a 19.9% increase.

Market outlook and comment from Bayut CEO

Abu Dhabi’s real estate market in 2024 has demonstrated remarkable growth, driven by transparency, innovation, and strategic foreign investment. Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, noted: “2024 has been an incredible year for Abu Dhabi’s real estate market. At Bayut, we’ve witnessed over 15.2 million visits to Abu Dhabi property listings, showing the robust demand the capital has experienced throughout the year.”

Khan also emphasized the growing interest in high-end properties, reflecting Abu Dhabi’s evolution into a global city offering unparalleled quality of life. The increasing availability of affordable options ensures inclusivity and accessibility, further strengthening the emirate’s appeal to a diverse audience of investors and residents.

Looking ahead to 2025, Abu Dhabi is poised for continued growth, with numerous new projects in the pipeline. Significant handovers expected in late 2024 and early 2025 will further solidify the capital’s reputation as a premier destination for real estate investment.