Abu Dhabi real estate booms: Strong demand drives sales and rents to new highs
Rising prices and growing demand: what’s driving Abu Dhabi’s real estate market in 2024?
- Citywide villa prices increased by 10%, with luxury areas like Saadiyat Island seeing a 30% surge in apartment prices, reflecting strong demand.
- Rental prices are outpacing sales growth, with villa rents up by 10% and apartment rents rising by 16%, driven by high demand in prime areas like Yas Island and Saadiyat Island.
Abu Dhabi's real estate sector is witnessing robust growth, with significant increases in both sales and rental prices in 2024, according to Cushman & Wakefield Core’s latest report.
The market saw the handover of 2,431 units this year, with another 1,950 expected by year-end, largely in Reem Island and Yas Island.
There’s a notable shift towards ready-to-move-in properties, with a 54% increase in transactions. Despite this, off-plan sales have dropped 19% due to fewer project launches.
Price and rental dynamics
Citywide villa prices surged by 10% year-on-year, driven by high demand in luxury areas like Saadiyat Beach Villas (+11%) and Yas Acres (+7%). Apartment prices also climbed by 8%, with Saadiyat Island leading the market at a 30% increase, followed by Yas Island (+17%) and Reem Island (+9%).
Rental prices have risen at a faster rate than sales, causing a compression in yields. Rents for villas increased by 10%, with notable rises in Saadiyat Island (+14%) and Yas Acres (+13%).
Apartment rents surged by 16%, with Yas Island seeing the highest increase at 15%, followed by Saadiyat Island (+14%) and Reem Island (+12%).
The demand for prime locations is pushing rents higher, making areas like Yas Island more desirable for tenants, while established luxury communities like Saadiyat Island continue to lead the rental market growth.
Market outlook
As Abu Dhabi’s real estate market evolves, the demand for ready properties is expected to grow, reflecting a trend towards end-user buyers looking for immediate occupancy.
This shift, combined with the strong rental market, suggests continued resilience and growth in Abu Dhabi’s real estate sector for the foreseeable future.
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