In its recent report, Asteco underlined that the real estate market in Abu Dhabi has potential for the rest of 2024. Now, more than ever, upmarket areas of the country are witnessing a hike in rental prices, which have hit an average of 10%.
However, the trend indicates that villas are far superior to apartments, especially regarding sales value.
The report highlights the completion of 800 new residential units across Abu Dhabi’s Investment Zones in Q1 2024, with a concentration in Al Raha Beach.
A significant development is the launch of Yas Canal , a massive new villa project on Yas Island. Their construction is expected by the end of 2027; this project will provide 1,146-bed spaces to only the citizens of the UAE.
The rental market’s general trend was fairly stable, with high rental demand for prime locations being most sought after, especially in terms of rental hikes.
The sales market saw a significant rise in transactions during Q1 2024, with off-plan sales making up a large portion (69%). Apartment sales remained relatively flat overall, but luxury segments on Yas Island and Saadiyat Islands saw a price surge.
Villa sales prices experienced modest quarterly increases but significant year-on-year growth, reaching up to 15%.
As high-quality available space remains limited and the overall business demand for quality offices increases, rents for new and second-generation space rose in 2024. This could be attributed to governments trying to woo foreign investors into the region by offering various incentives.
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