Abu Dhabi’s Thriving Real Estate Market: An Overview
Abu Dhabi real estate market landscape has showcased remarkable growth, particularly in the last quarter of 2023. The sector experienced a notable uptick across all divisions, with the residential market taking the lead in this upward trajectory.
Continuous Expansion of Abu Dhabi Real Estate Market in Sales and Rentals
The final quarter of 2023 was a period of significant advancement for Abu Dhabi’s property market, as evidenced by a comprehensive increase in both sales and rental values.
Notably, the ValuStrat Price Index (VPI) for residential properties in Abu Dhabi registered a 4.2 percent rise on an annual basis, alongside a 1 percent increase over the quarter.
The villa segment, in particular, enjoyed robust growth, with quarterly and annual hikes of 1.7 percent and 5.7 percent, respectively. Meanwhile, apartment values saw a steady annual climb of 2.7 percent.
The average value of homes during this period was recorded at AED9,720 per square meter. A closer look reveals apartments priced at AED10,495 per square meter and villas at AED7,847 per square meter. Among the top performers, Saadiyat Island villas experienced the highest annual capital gains, surging by 12.6 percent.
Abu Dhabi Rental Market Achieves Strong Gains
The rental segment wasn’t far behind, with the annual VPI for rental values marking a 6.4 percent year-on-year increase and a 1 percent rise over the quarter. Villas led the charge with an impressive 7.5 percent annual growth, whereas apartments enjoyed a 5.3 percent increase, underscoring the persistent demand in Abu Dhabi’s rental market.
Insights from Abu Dhabi Real Estate Market Experts
Haider Tuaima, a respected voice in real estate research, highlighted the continued growth in both price and rental sectors during the fourth quarter as indicative of a maturing market, primarily propelled by domestic buyers. The off-plan property market, in particular, has seen heightened interest from foreign investors, further energizing the sector.
Unfolding Developments and Future OutlookÂ
The completion of 2,587 new apartments, accounting for 42 percent of the expected residential developments in 2023, marks a significant step towards addressing the growing demand. This has been particularly evident in the off-plan market, which witnessed a 15.5 percent quarterly and 23.1 percent annual increase in residential prices per square foot.
Additionally, the commercial and hospitality sectors have demonstrated exceptional growth, highlighting the overall strength and potential of Abu Dhabi’s property market as it continues to evolve.
