Abu Dhabi sees an 83% spike in home sales fueled by digital nomads and expats

Abu Dhabi, UAE – Recent data shows that house sales in Abu Dhabi soared by 83% year-on-year due to the arrival of many expatriates and digital nomads.

Based on the Savills report, more than 11,200 flats were sold in Dubai in 2023, according to the report. Several government schemes, a thriving local economy, and a wave of new projects gave this substantial growth in demand great impetus.

The increasing inquiries from outside the country and at home have allowed the developers to develop an additional 8,000 units for the market. Establishing a more transparent property space has improved the flow of investments and end-user participation.

Villas and townhouses comprised the largest proportion of sales, accounting for around 43 per cent. Many buyers opted for off-plan units, which accounted for 84% of all villa and townhouse sales. The Saadiyat Island, Yas Island, and Al Reem Island were the hubs of the projects with high demand. The average sales price of Abu Dhabi villas, AED 11,800 per square meter, grew by 6% compared to last year.

Apartment buildings took up as much as 57% of all transactions, with the Aldar Properties company and Reportage Real Estate being the new launches. Apartments average selling price went up by 6%, with some areas experiencing a jump of as much as 18%. The rental rate exhibited minimum change throughout the Emirates.

Foreign ownership results from the government’s reform, which includes allowing foreigners to reside in the country long-term or indefinitely. Besides, high demand from nationals of the Emirates has also accounted for the real estate boom.

Savills’ research last year showed that Abu Dhabi ranked fourth among the destinations digital nomads preferred. The Emirates’ one-year remote visa to workers from Northern Europe is an additional incentive.

The surge in home sales aligns with the wider economic expansion in Abu Dhabi. The emirate’s non-oil sectors have grown substantially and are expected to maintain momentum this year. A thriving real estate market appears set to be a key pillar of continued prosperity. Analysts say ample new supply in the pipeline should help satisfy swelling demand for Abu Dhabi property. But with no slowdown in sight for expat relocations and real estate investment, developers may struggle to keep up. Home buyers and tenants look poised to enjoy various options and bargaining power.