Abu Dhabi’s property market heats up: Q3 surge in prices and investor interest

Locations such as Al Reef, Al Ghadeer, and Masdar City were the top choices for affordable apartment buyers, while Al Reem Island, Al Raha Beach, and Yas Island led the luxury apartment segment, according to Bayut, a UAE-based real estate portal.

Villas in Al Reef, Khalifa City, and Yas Island attracted significant interest, reflecting rising prices and strong demand. Bayut's CEO Haider Ali Khan noted in a press release that Abu Dhabi's real estate market remains robust, supported by increased transparency and growing foreign investments.

Bayut’s data revealed that average prices per square foot increased by over 2% for affordable apartments, with luxury apartment prices rising up to 8%, especially in prime areas like Saadiyat Island.

Affordable villa prices also saw growth, with Khalifa City’s price per square foot climbing by 5.65%. In contrast, Yas Island’s luxury villas experienced a 4.94% price increase, driven by their proximity to key attractions.

Return on investment (ROI) trends were equally notable. Al Reef and Al Ghadeer offered returns of 8.86% and 8.20%, respectively, for affordable apartments, while Yas Island and Al Reem Island provided returns of up to 7.22% for luxury apartments.

Affordable villas in Hydra Village and Abu Dhabi Gate City saw yields of 8.06% and 6.69%, while luxury villas on Yas Island generated an ROI of 6.50%.

Off-plan properties are thriving as well, with projects such as Royal Park in Masdar City gaining attention in the affordable segment, and City of Lights in Al Reem Island emerging as a top choice for luxury buyers. Villas in Bloom Living (affordable) and Saadiyat Lagoons (luxury) also ranked highly in buyer interest.

In the rental market, affordable apartments in Khalifa City, Al Khalidiya, and Al Shamkha attracted the most tenant interest, with rental prices in these areas rising by up to 15%. For luxury apartments, Al Reem Island, Al Raha Beach, and the Corniche Area saw rent hikes of 2% to 11%.

Affordable villa rentals in Mohammed Bin Zayed City and Khalifa City remained steady, while luxury villa rents in Al Mushrif surged by 12.4%.

Commenting on the findings, Haider Ali Khan said, "The Abu Dhabi real estate market continues to stay strong this year, thanks to increased transparency and solid investments from both local and international players."

He emphasized the impact of government initiatives like AI-powered services and the DARI real estate platform, which have enhanced the market’s transparency and digital capabilities.

With the Abu Dhabi Real Estate Centre (ADREC) set to attract more foreign investments, Khan anticipates continued growth, driven by smart city projects and sustainability trends in the coming years.

This data from Bayut’s Q3 report provides a snapshot of the dynamic trends shaping Abu Dhabi’s real estate landscape in 2024.

As the year progresses, the city’s property market is expected to remain on a growth trajectory, fueled by investor interest and government-backed initiatives.