According to Bayut, Abu Dhabi’s property sales and rental sectors have experienced significant growth in the first half of 2024. The comprehensive report highlights key trends and pricing changes in the UAE’s capital city.
Sales Trends:
Affordable Segments: Al Reef and Al Ghadeer emerged as top areas for affordable apartments, while Al Reem Island and Al Raha Beach were preferred for luxury apartments. Budget-friendly villas saw high demand in Al Reef and Khalifa City, with luxury villas being popular in Yas Island and Saadiyat Island.
Price Increases: Luxury villas in Yas Island saw a notable 10.3% price increase, while Saadiyat Island’s luxury apartments rose by 6%. Premium flats in Yas Island and Al Reem Island saw price hikes of 2.77% and 2.75%, respectively. Affordable apartments in Al Ghadeer and Al Reef rose by 9.5% and 2.16%, respectively. Significant price hikes were also observed in budget-friendly villas in Al Ghadeer (6.10%) and Al Samha (5.57%), although villas in Khalifa City saw a slight decrease of 1.73%.
Return on Investment (ROI): Al Ghadeer offered an impressive ROI of 8.52% for affordable apartments, while Al Reem Island provided a robust rental yield of 6.94% for luxury apartments. Hydra Village led with an 8.08% ROI for affordable villas, and Yas Island luxury villas had a 6.89% ROI.
Popular Projects: Budget buyers favored off-plan apartment projects like Royal Park and Bloom Living, while luxury buyers showed preference for island community developments such as Yas Bay, City of Lights, and Saadiyat Cultural District. Fay Al Reeman 2 was popular for small-ticket investments in off-plan villas, with Yas Acres and Murjan Al Saadiyat leading for luxury villas.
Rental Trends:
Affordable Rentals: Khalifa City and Al Khalidiyah were top choices for affordable apartment rentals, with Mohammed Bin Zayed City (MBZ City) and Khalifa City being popular for renting affordable villas.
Luxury Rentals: For luxury apartments, Al Reem Island and Al Raha Beach were preferred, while high-end villas were sought after in Yas Island and Al Raha Gardens. Luxury apartment rentals in Saadiyat Island and Al Raha Beach grew by up to 21%, while affordable apartment rentals increased by over 7% in areas like Al Muroor. Rental rates for affordable villas saw a moderate rise of around 7%, except in Shakhbout City, which saw a minor decline. Upscale villas, especially in Al Bateen, experienced rent hikes of up to 12%, reflecting strong demand.
Market Outlook:
Bayut’s report underscores a strong performance in Abu Dhabi’s real estate market for the first half of 2024, indicating a favorable environment for both local and international investors. The sales sector shows a positive trajectory, and the residential rental market is expected to continue its upward trend in the coming months.
