Real Estate Market Trends in Abu Dhabi 2024
Abu Dhabi has garnered significant attention from real estate investors in recent times, becoming a focal point for property opportunities due to positive market trends.
In this Realty Zone article, we will explore the trends of real estate market in Abu Dhabi for 2024 based on the previous year’s data, providing insights into promising investment opportunities in this evolving market.
Overall Real Estate Performance in Abu Dhabi 2023
The real estate market in Abu Dhabi witnessed positive results in 2023, with a projected upward trajectory in the real estate market volume for 2024, reflecting increased investor interest and government success in making this sector attractive.
Residential transactions in Abu Dhabi exceeded 56%, reaching AED 67.8 billion during the first nine months of 2023.
Residential sales prices experienced a 3.9% year-on-year acceleration in October 2023.
By December 26th, 14,211 real estate units were sold, amounting to AED 50 billion.
Residential Sales Performance in Abu Dhabi
Sales of residential properties in Abu Dhabi for 2023 were distributed across two main categories:
1- Apartment Sales
Lower-priced apartment sales were prominent in areas such as Al Reef, Al Ghadeer, Masdar City, and Bani Yas, with studio apartment prices ranging from AED 370,000 to AED 763,000, yielding returns between 5.09% and 8.04%.
Luxury apartment sales were dominated by Al Reem Island, along with Al Raha Beach, Yas Island, and Saadiyat Island. Prices for luxury one-bedroom apartments in these areas ranged from AED 853,000 to AED 1,913,000, with returns between 4.24% and 6.6%.
2- Villa Sales
Affordable villas in Abu Dhabi gained popularity, especially in areas like Al Reef, Khalifa City, Samha, Al Ghadeer, and Hydra Village. Prices for 3-bedroom villas started from AED 949,000 to AED 4,042,000, with returns ranging between 3.88% and 6.78%.
Prices for luxury villas in Abu Dhabi increased compared to 2022, particularly in Yas Island, Saadiyat Island, and Al Raha Gardens, ranging from AED 2,920,000 to AED 9,283,000 for a 4-bedroom villa, with returns between 4.35% and 6.04%.
Under-Construction Project Sales Performance in Abu Dhabi
Ongoing real estate projects continue to expand in Abu Dhabi, attracting demand for properties under construction or in the planning stages, particularly in areas like Masdar City, Shamkha, Zayed City, Yas Island, Reem Island, and Saadiyat Island.
High-Yielding Investment Areas in Abu Dhabi 2023
Reem Island recorded the highest return on investment in Abu Dhabi at 6.6%, offering diverse and attractive property options with prices starting from USD 285 per square foot. Yas Island and Saadiyat Island, popular among the wealthy for their limited offerings, saw price increases of 1.7% and 8.7%, respectively, compared to 2022.
Trends of Real Estate Market in Abu Dhabi 2024
Key trends dominating the upcoming phase in the real estate sector in Abu Dhabi for 2024 include:
1- High Demand for Luxury Properties
Abu Dhabi has been witnessing a growing demand for high-end real estate for several years, and it is evident that this trend continues into the year 2024. This can be attributed to the city’s investment appeal, which has encouraged foreigners to own properties in Abu Dhabi.
As a result, the market is expected to see new luxury projects in the coming period, as developers strive to meet the increasing demand.
2- New Real Estate Projects
The recovery of the real estate market in Abu Dhabi has improved the financial situation for property developers, leading to the initiation of new projects in 2024 by companies such as Reportage, Bloom, Webridge, and Baraka.
3- Stability in Mid-Range Property Prices
Market data indicates that mid-range property prices will not face significant fluctuations due to the balance between supply and demand.
The delivery of 24,000 residential units in 2024, mostly in areas with reasonable prices, is expected to contribute to stability in the mid-range market. This will also make rentals more adaptable to market changes.
4- Diversification of Real Estate
The delivery of new projects will introduce diverse properties into the Abu Dhabi real estate market in 2024, creating a balance between off-plan sales, leasing, resale, and catering to a wide range of customer needs.
5- Impact of Modern Lifestyle Patterns
Noticeable changes in the real estate market in Abu Dhabi are attributed to evolving lifestyle patterns, technological advancements, and professional changes, leading to increased property ownership, demand for short-term rentals, and flexible living options.
6- Technological Advancements in Real Estate
The real estate market has witnessed a rapid technological transformation, incorporating artificial intelligence to adapt to modern working methods and improve the customer experience during property searches.
7- Positive Outlook for Abu Dhabi Real Estate in 2024
Ratskevich, the CEO of Metropolitan Capital Real Estate in Abu Dhabi, expects strong real estate growth in 2024.
Expectations suggest that the real estate market in Abu Dhabi could reach between 80 and 90 billion dirhams, with an expected growth rate of 4%.
Ratskevich also explained that several factors contribute to this continuous ascent, including increased demand for luxury properties, the development of new projects, and the entry of Chinese buyers into the market.
Conclusion
The success of the real estate market in Abu Dhabi indicates clear superiority, pointing towards promising investment opportunities, especially with technological advancements, and the expansion of luxury projects, making the city a focal point for investors.
If you wish to seize successful investment opportunities in Abu Dhabi, feel free to contact us now for enticing real estate options.
Edited by: Realty Zone©
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