Bayut's insight on Abu Dhabi's property trends
From luxury villas on Yas Island to affordable rentals in Khalifa City, Abu Dhabi presents a booming real estate landscape
Abu Dhabi: A recent analysis by Bayut, a leading UAE property portal, paints a rosy picture of Abu Dhabi's property market. The report, released in July 2024, highlights significant growth across both sales and rental sectors during the first half of the year, solidifying the emirate's position as a compelling investment destination.
Sales trends
The property market surge is driven by a surge in demand for quality real estate. Property prices across Abu Dhabi rose considerably, with some areas witnessing particularly impressive growth. Budget-conscious buyers gravitated towards affordable apartments in Al Reef and Al Ghadeer, while luxury buyers set their sights on waterfront communities like Al Reem Island and Al Raha Beach.
Luxury segment
The most significant price hikes were observed in the luxury segment. Luxury villas on sought-after residential islands like Yas Island experienced price-per-square-foot spikes of up to 10.3%. Saadiyat Island wasn't far behind, boasting a notable 6% increase in luxury apartment prices. Even the affordable segment saw a healthy uptick, with average sales prices per square foot for budget-friendly villas in Al Ghadeer and Al Samha rising by as much as 7%.
Investment insights
For investors, the report offers valuable insights. Al Ghadeer's affordable apartments emerged as the frontrunner, offering a projected return of 8.52%. This stands in contrast to Al Reem Island's 6.94% projected return for luxury apartments.
Off-plan projects also cater to diverse preferences. Budget-conscious buyers favored developments like Royal Park and Bloom Living, while luxury buyers gravitated towards projects in Yas Bay and the Saadiyat Cultural District.
Shifting Preferences
The rental market thrived in the first half of 2024, echoing the trends observed in the sales sector. Dynamic shifts in tenant preferences and area-specific demand fueled this growth.
Khalifa City and Al Khalidiyah emerged as hotspots for affordable apartment rentals, while luxury renters flocked to Al Reem Island and Al Raha Beach. Similar to the sales market, luxury rentals witnessed the most significant increases, with rents surging up to 21% in sought-after areas like Saadiyat Island and Al Raha Beach. Even affordable rentals saw healthy increases exceeding 7% in areas like Al Muroor. Upscale villas, particularly in prime locations like Al Bateen, witnessed rent hikes of up to 12%, solidifying their allure for high-end renters.
Market poised The robust growth observed in the first half of 2024 positions Abu Dhabi's property market for continued success. Stakeholders anticipate the positive trajectory in both sales and rentals to persist throughout the year. Industry experts remain optimistic, citing strong demand and strategic market developments as key drivers for this momentum.