Abu Dhabi’s property market maintained strong growth throughout the third quarter of 2024, showcasing remarkable progress, especially within the luxury real estate sector. Yas Island and Al Reem Island have emerged as prominent locations, experiencing high demand and notable returns, as highlighted by dubizzle’s recent report. Increased prices and rental rates in the luxury segment underline this upward trend, while areas within the affordable property category also saw gains in both sales and rentals, further solidifying the market’s overall growth. According to the latest data, Q3 2024 has been marked by steady prosperity in Abu Dhabi’s property landscape.
This growth is seen as a reflection of stakeholder confidence, bolstered by the UAE’s investment-friendly policies, increased transaction transparency, digitalized processes, and strong investment security. Haider Khan, CEO of dubizzle and Dubizzle Group Mena, noted that Abu Dhabi’s real estate sector thrived in Q3 2024, with growth momentum particularly evident in the luxury market. Khan emphasized the performance of Yas Island and Al Reem Island as leading hotspots for investors, showing significant demand and impressive returns.
DARI’s analysis also highlighted an increase in the sales value of off-plan projects, with numbers rising from AED4.5 billion in Q2 to AED5.4 billion in Q3. This robust growth, Khan indicated, signals market confidence, which he expects will sustain the market’s upward trajectory. He further explained that the stability of Abu Dhabi’s economy, coupled with its urban appeal and major projects like Jubail Islands, continues to draw international investment, thereby driving growth in the real estate sector. Khan emphasized dubizzle’s commitment to empowering users with essential tools for navigating this thriving market, further reinforcing dubizzle’s role as the UAE’s primary real estate listing platform.
Key Insights from Abu Dhabi’s Q3 2024 Property Market
- Top Luxury Areas for Villas: Yas Island has emerged as a top choice for both buyers and tenants in the luxury villa market, with average sales prices at AED4.25 million and rental rates around AED226,000 annually.
- Top Luxury Areas for Apartments: Al Reem Island is a preferred option for luxury apartment buyers and renters, with an annual rent of AED99,000 on average and sales prices at AED1.39 million.
- High Investment Returns for Luxury Properties: Investors in luxury properties are seeing notable returns, with Al Jubail Island offering an ROI of 6.82% for luxury villas, while Al Reem Island led in the luxury apartment market with an ROI of 6.85%.
- Top Affordable Areas for Villas: In the affordable category, Al Reef was the leading choice for villa buyers, averaging a sales price of AED2.16 million. Mohammed Bin Zayed City topped the rental market, with average annual rents around AED144,000.
- Top Affordable Areas for Apartments: For affordable apartment seekers, Al Reef remained a sought-after option, with average sales prices at AED857,000. In the rental market, Khalifa City led with an annual rent of AED44,000.
- Popular Off-Plan Projects: For affordable options, Royal Park in Masdar City was the most popular off-plan apartment project, with sales prices averaging AED883,000. For affordable villas, Al Reeman 2 in Al Shamkha remained highly searched, with prices around AED4.05 million. Among luxury projects, City of Lights on Al Reem Island led for apartments at an average price of AED1.41 million, while Noya Viva on Yas Island topped the luxury villa market at AED3.37 million.
- Investment Returns in Affordable Markets: Al Reef yielded the highest ROI at 8.9% for affordable apartments, while Al Ghadeer led the affordable villa segment with a 6.29% ROI.
Dubizzle’s analysis of search trends reveals Al Reem Island, Yas Island, and Al Raha Beach as the most preferred areas for purchasing luxury apartments in Abu Dhabi, supported by high-end projects, tourist destinations, and waterfront views. For affordable apartment buyers, Al Reef, Masdar City, and Al Ghadeer were the top choices in Q3 2024. Similarly, Yas Island, Saadiyat Island, and Al Reem Island attracted the most interest for luxury villa purchases, while Al Reef, Al Shamkha, and Zayed City were popular among those seeking affordable villa options.
Original source: https://www.zawya.com/en/business/real-estate/abu-dhabis-property-market-continues-upward-momentum-in-q3-ykz8twxb
