Abu Dhabi, once reliant on its oil wealth, has now transformed into one of the UAE’s most vibrant real estate markets. The trends from 2023 and 2024 underscore the city’s successful shift towards economic diversification. Notable achievements such as increased foreign direct investment (FDI) and unprecedented housing sales make it an opportune moment to invest in the city’s real estate sector.
Abu Dhabi houses around 90% of the UAE’s total oil reserves. The road ahead, however, lies in breaking from its dependence on oil and opening up to other possibilities. Under the Abu Dhabi Economic Vision 2030, the real estate sector has become an instrumental catalyst in ensuring this economic diversification. In 2023 alone, Abu Dhabi sold 12,800 properties and recorded a 117% year-on-year growth. In terms of value, this amounted to $11.6 billion (AED 42.6 billion), a remarkable 184% growth from the previous year.
This market expansion is making way for greater economic independence. Concurrently, high demand and strong value appreciation make Abu Dhabi a market ripe for property investments. As the city continues its successful march, we explore the latest property trends and track its best investment avenues.
Top Areas to Invest in Abu Dhabi
Abu Dhabi has risen in off-plan, mid-budget and luxury property segments. This has propped up housing sales in multiple regions across the city. Some of the top-performing areas of Abu Dhabi are listed below:
1. Al Raeem Island
Al Raeem Isalnd’s recent trends have established it as a top choice for mid-segment properties in Abu Dhabi. In 2023, apartments were the most preferred property type in Al Raeem Island. 73% of the total property transactions in the area included apartments, comprising off-plan and ready projects in near equal proportions. Market prices for these apartments ranged from $300,000 (AED 1.2 million) to $400,000 (AED 1.5 million).
2. Yas Island
Yas Island witnessed a particular rise in the premium properties segment. It ranked second in the highest transaction volume in 2023, with 2,940 sold units. These primarily included properties like apartments and villas. While apartments sold in Yas Island ranged between $400,000 – $600,000 (AED 1.5–2.0 million), villas sold in the area ranged between $800,000 – $1.6 million (AED 3.0 – 6.0 million). The distribution between these two property types was almost evenly balanced.
3. Al Saadiyat Island
In 2023, Al Saadiyat Island alone accounted for $3.2 billion worth of property sales, constituting Abu Dhabi’s third-highest transaction volume. Off-plan properties dominated the market, comprising 90% of the total transactions. Among these, larger 4 and 5-bedroom villas emerged as the most demanded property types. 5-bedroom villas, for instance, experienced a remarkable 22% value appreciation in the first half of 2024 alone.
This surge in off-plan sales has been recorded across Abu Dhabi, jumping from 18% in 2019 to a staggering 73% in 2023.
Al Saadiyat Island has also become a favourite among international developers like St. Regis and Nobu Residences, who introduced multiple new projects in the area. Recent sales of a $37 million penthouse and a $35 million duplex sky villa by Noby Residences also highlight a simultaneous increase in the sale of luxury properties.
Abu Dhabi’s Global Appeal
Abu Dhabi’s growing appeal as an investment avenue extends beyond its booming sales. Numerous other developments have played key roles in cementing its global prestige. The Economist Intelligence Unit’s Global Livability Index named Abu Dhabi the most livable city in the Middle East and North Africa (MENA) region. The city also retained the title of the safest city in the world by Numbeo’s Crime and Safety Indices in 2024 for the eighth consecutive year, making it an attractive and safe investment destination for potentially high returns.
The city’s global appeal was further validated by the $0.9 billion (AED 3.28 billion) FDI interest it attracted in the first half of 2024. This marked a 225% year-on-year growth, as per the Abu Dhabi Real Estate Centre (ADREC). The Zayed International Airport recorded 14 million international visitors in the first half of 2024, 34% more than the previous year. Policies such as eliminating the minimum down payment for golden visas and post-pandemic shifts such as increased demand for larger homes and the rise of remote working setups have also impacted significantly.
Abu Dhabi’s housing market growth has been unprecedented and multifaceted, emerging as a key driver in economic diversification. As a result, it continues to shape the city’s future, and investors stand at the threshold of groundbreaking investment opportunities.
Read more through the links below to uncover the key trends and market leaders driving this growth:
property.constructionweekonline – https://bit.ly/3M2ycsn
Published Date: 20 Aug, 2024
