Abu Dhabi real estate surges: Rents up 20%, sales prices rise 11%

Abu Dhabi’s real estate sector experienced significant growth in 2024, with residential rents rising by 20%, sales prices up by 11%, and prime office occupancy reaching 95%. A limited supply of new properties intensified competition, driving prices higher, according to Cushman & Wakefield Core, a global commercial real estate services company.

According to Cushman & Wakefield Core, Abu Dhabi's real estate market faced a limited supply in 2024, with only 3,004 residential units delivered, 46% below forecasts.

Despite this shortage, property prices climbed 11% year-on-year, driven by strong demand for villas. Residential rents increased by 20%, with Saadiyat Island seeing the highest jump at 31%.

Meanwhile, the secondary market boomed, as property transactions surged 54%, with buyers favoring ready-to-move-in homes over off-plan investments.

Khalifa City saw prices jump 30%, reflecting increased demand for suburban communities. Premium rental markets tightened, with Saadiyat Island, Reem Island, and Al Raha Beach rents rising 31%, 24%, and 21%, respectively.

2025 market forecast

The emirate expects 8,500 new residential units in 2025, nearly triple the 2024 figure, but demand is projected to remain strong, sustaining price pressure.

Prathyusha Gurrapu, Head of Research at Cushman & Wakefield Core, noted:

Supply struggled to match demand in 2024, leading to sharp price increases. While 2025’s new supply will help, demand remains high, keeping pressure on sales and rental prices.

Abu Dhabi’s office sector hits record highs

The office market had one of its strongest years, with prime office occupancy reaching 89%. Limited availability pushed office rents up 11%, and most new office space for 2025 is already pre-leased.

David Short, Head of Abu Dhabi at Cushman & Wakefield Core, said: "Office space is scarce, particularly in ADGM and Reem Island. Companies are rushing to secure locations, while others are exploring newer districts or optimizing existing spaces."

New developments will help ease supply constraints, but Abu Dhabi’s real estate market remains highly competitive. The Abu Dhabi Rental Index is expected to improve pricing transparency, while expanding freehold ownership options will attract more investors.

Gurrapu emphasized Abu Dhabi’s continued growth, driven by economic diversification, infrastructure expansion, and government initiatives, reinforcing its position as a global investment hub.