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Abu Dhabi Luxury Real Estate Market has seen significant changes this quarter. High demand, rising prices, and new developments have been the buzz. Let’s break down what’s happening and why it matters.
Sales Trends Show Healthy Luxury Market
As per the Q3 2024 analysis by property portal dubizzle, the average sales price of luxury apartments on Al Reem Island stood at AED 1.39 million, with returns on investment (ROI) at a healthy 6.85%. The average sales price of villas was AED 5.15 million.
On Yas Island, luxury flats sold for an average AED 1.81 million, while villas went for AED 4.25 million. The ROI came in at 6.52% for apartments and 6.42% for villas.
Saadiyat Island remained another top luxury area, with apartments averaging AED 3.32 million and villas priced at AED 8.91 million.
Al Jubail Island saw the biggest jump in luxury villa prices, rising nearly 11% to AED 10.26 million. The ROI here hit 6.82%, the highest among top luxury areas.
Increase in per-square-foot rates.
Along with a rise in capital values, the per-square-foot rates of luxury apartments and villas also recorded an upward trajectory.
For instance, the average per-square-foot sales rate of apartments in Al Reem Island peaked at AED 1,156 in Q3, marking an increase of 2.3% over the previous quarter. The area offers easy access to offices and retail outlets along with panoramic waterfront views.
Likewise, the per square foot rate for luxury villas in Al Jubail Island also witnessed the highest rise of 9.33% in Q3, making it one of Abu Dhabi’s most expensive villa markets.
The expanding development activity, upcoming leisure attractions and the introduction of Abu Dhabi’s first luxury celebrity-designed villas contributed to the area’s popularity.
Rents Also See Increases
The luxury rental market also strengthened in Q3 2024. On Al Reem Island, average annual rents for flats rose 10% to AED 99,000. Rents averaged AED 100,000 on Yas Island and AED 153,000 on Saadiyat Island.
For luxury villas, top rental areas included Yas Island at AED 226,000 per year, Al Rahba at AED 170,000, and Al Raha Gardens at AED 244,000.
Affordable Segment Also Performs Well
Abu Dhabi’s affordable housing market saw a robust Q3 2024 as well. Areas like Al Reef, Masdar City, and Al Ghadeer ranked among the most popular places to purchase budget-friendly flats.
Al Reef topped the list with apartment sales averaging AED 857,000 and ROI hitting 90%. Masdar City and Al Ghadeer also fared well, with average sales of AED 904,000 and AED 834,000 respectively.
For affordable villas, Al Reef again led with average selling prices around AED 2.16 million. Al Shamkha and Zayed City followed as sought-after budget villa locations.
Positive Market Sentiment
Real estate industry experts noted the positive sentiment driving Abu Dhabi’s luxury and affordable housing markets. Continued economic stability, business-friendly policies, landmark projects, and urban growth have catalyzed activity and investment.
Properties in well-located communities near attractions continue to see high demand. New off-plan launches also generate buzz. Stakeholders predict the solid momentum to persist through the end of 2024 and into 2025.
Breakdown of Top Luxury Areas
Delving deeper into the data reveals interesting trends in Abu Dhabi’s top luxury apartment and villa locations during Q3 2024.
Al Reem Island
Al Reem Island retained its spot as the #1 luxury apartment area in the Emirates. Prime waterfront projects, proximity to Abu Dhabi city, and an upbeat lifestyle experience fuel its enduring popularity.
In Q3 2024, average sales prices for flats here grew to AED 1.39 million, with per-square-foot rates touching AED 1,156. Rents averaged AED 99,000 for the year. One-beds went for AED 67,000, two-beds AED 88,000, and three-beds AED 104,000.
For off-plan purchases, the newly launched City of Lights project started pre-sales of luxury flats during the quarter. Units here sold for an average of AED 1.41 million.
Yas Island
With its Formula One Circuit, theme parks, and entertainment venues, Yas Island needs no introduction as an iconic Abu Dhabi destination. Its allure extends to real estate as well, with luxury homes in high demand.
Villas were the biggest draw, selling for AED 4.25 million on average in Q3 2024. Some dipped from Q2 levels but still commanded healthy sums. Per square foot rates averaged AED 1,384.
The vibrant Noya Viva development continued to see strong off-plan sales. Luxury villas here sold for AED 3.37 million on average.
For ready luxury flats on Yas Island, average prices in Q3 reached AED 1.81 million. Rents sat at the AED 100,000 level. New off-plan options came online as well, with homes pre-selling for around AED 2 million in the Yas Bay tower.
Saadiyat Island
Home to the Louvre Abu Dhabi, Guggenheim outpost, and NYU campus, Saadiyat Island enjoys its reputation as a cultural and artistic haven.
In Q3 2024, average luxury apartment prices reached AED 3.32 million, at the higher end of the spectrum. For villas, the sales figure also topped out at AED 8.91 million. Per square foot rates were AED 1,541.
Rents averaged AED 153,000 per annum for flats here. The Saadiyat Lagoons development saw villas pre-sell for AED 8.53 million on average during the quarter.
Al Raha Beach
Al Raha Beach has carved out a niche as an upscale waterfront community along the Khor Al Raha. Luxury flats here are among Abu Dhabi’s most prestigious and remain highly coveted.
In Q3 2024, average sales prices for Al Raha Beach apartments stood at AED 1.88 million. Rents came in around AED 124,000 per annum.
One-bedroom units rented for AED 82,000 and two-beds AED 121,000 on average. These figures represented almost 10% annual increases.
Per square foot apartment rates averaged AED 1,320, making Al Raha Beach one of Abu Dhabi’s most prime locales. The Index Tower and Ocean Terrace developments saw the highest luxury rental demand.
Scoop on New High-Profile Projects
Beyond the established luxury areas, several new large-scale master-planned developments also made progress during Q3 2024. Though still under development, these emerging destinations generated substantial attention and hype.
Al Jubail Island
Al Jubail Island lies off the eastern coast of Abu Dhabi island, accessible via a scenic bridge. The project broke ground in Q1 2022 and completion is expected by 2025.
The development will feature over 7,000 beachfront residences across 22 buildings. These include spacious garden homes, penthouse suites, and water villas perched over the sea. Residents can expect a luxury five-star hotel and a wealth of dining, leisure, and retail options as well.
During Q3 2024, developers placed several residential phases up for sale. Average villa prices reached AED 10.26 million, the highest among top luxury areas. Returns also impressed at nearly 6.82%.
Al Jubail Island has already emerged as one of Abu Dhabi’s most coveted up and coming locales for ultra-luxury living.
Mamsha Al Saadiyat
Mamsha Al Saadiyat on Saadiyat Island by Aldar Properties is billed as a “new city for culture and art”. Spanning 4.3 square kilometers along the island’s south shore, this expansive project will contain over 10,000 homes when complete.
Q3 2024 saw brisk sales for new phases of Mamsha Al Saadiyat containing townhouses, beach villas, and waterfront palaces. Signature offerings included the upscale Louvre Residences attached to the iconic museum.
Homes here sold for premium prices, averaging in the higher AED 2-4 million range during the quarter. Mamsha Al Saadiyat has positioned itself as the cultural jewel of Abu Dhabi real estate.
Al Qana
Al Qana is one of Abu Dhabi’s most anticipated developments coming up on a prime stretch along the Khor Al Maqta waterway. The expansive project by Al Barakah International is pegged as a new lifestyle and entertainment haven.
Spanning 145,000 square meters, Al Qana will incorporate a luxury hotel, beach club, upscale retail village, dining promenade, wellness center, marina, and over 1,000 residential units. Home types range from studios to spacious villas.
During Q3 2024, developers commenced sales of initial residential phases. Asking prices for ready flats averaged nearly AED 2 million. Waterfront villas also sold in select numbers, going for as much as AED 8-10 million each.
Al Qana is slated for phased completion starting in 2025. Its one-of-a-kind amenities and features have positioned it as one of Abu Dhabi’s hottest upcoming mixed-use destinations.
Spotlight on Off-Plan Launches
The luxury off-plan segment catalyzed further enthusiasm among investors during Q3 2024. We take a look at some of the popular upcoming projects witnessed heightened buyer interest.
Luxury Off-plan Apartments
Yas Bay, the upcoming waterfront district situated along the southern shores of Yas Island saw strong buyer demand. Off-plan flats in Yas Bay Residences were the most coveted with average prices of AED 2.02 million.
In Al Reem Island, units in City of Lights development secured the second rank. With homes offering spectacular views of the sea and Abu Dhabi skyline, average prices climbed to AED 1.41 million.
Over at Saadiyat Island, apartments within the Mamsha Al Saadiyat and Saadiyat Cultural District developments piqued buyer interest, with average prices approaching AED 3.35 million.
Luxury Off-plan Villas
In the villa category, Noya Viva secured pole position among luxury off-plan projects. Located on Yas Island along the Yas Marina Circuit, Waterfront villas in Noya Viva carry average prices of AED 3.37 million.
Saadiyat Beach Villas in Saadiyat Island came next on buyer’s wishlist, with homes priced around AED 8.53 million on average. The project’s unique beachfront setting, bespoke designs by Pritzker Prize winners and private pools aided its premium positioning.
Reem Hills villas in Al Reem Island saw average prices climb to AED 5.25 million, making it the third most popular off-plan luxury villa development. Soaring demand stemmed from its proximity to Al Maryah Island’s business district and Abu Dhabi Island’s key zones.
Steady Investment Returns
While sales prices climbed higher across the luxury spectrum, investment returns also remained positive in Q3 2024.
In the luxury apartment category, Al Reem Island took pole position by offering a healthy ROI of 6.85%.
For luxury villas, Al Jubail Island bagged top rank with returns pegged at 6.82% driven by rising development activity in the area.
The optimistic performance has enabled Abu Dhabi luxury real estate to outdo popular global cities like London, Shanghai and Dubai in terms of price growth.
Closing Thoughts
Abu Dhabi’s luxury property segment showed immense vibrancy during Q3 2024 across metrics like prices, rents, volumes, and launches.
Waterfront communities like Al Reem Island, Yas Island and Saadiyat Island continued to anchor demand. Meanwhile, new headline-grabbing projects like Al Jubail Island, Qana, and Mamsha Al Saadiyat point to an eventful future.
With resilient economic activity, pro-business policies, and major development initiatives leading growth, Abu Dhabi has cemented its reputation as a prestigious global city and investment magnet.
The positive momentum seen in Q3 2024 looks set to continue. Discerning high-net-worth investors and tenants hunting for the ultimate luxury living experiences will keep flocking to the emirate.
