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Boom in Abu Dhabi Real Estate: Luxury Market Sees 13% Sales Growth, 22% Rent Increase

Abu Dhabi’s high-end real estate market witnessed significant growth in 2023. Sales prices for luxury apartments and villas climbed up to 13%, while rents rose over 22%.

The Abu Dhabi Real Estate Market Report analyzes search trends and price data. It found high demand for upscale units in prime areas like Al Reem Island, Yas Island, and Saadiyat Island. Rental yields also remain attractive for buy-to-let investors.

Data shows sales prices for luxury flats and houses grew steadily last year. For instance, prices on Saadiyat Island went up 8.73% for upmarket apartments and 12.9% for premium villas.

At the same time, rates for affordable units in locations like Al Reef and Al Ghadeer saw minor declines per square foot. Prices for budget villas rose slightly in communities such as Al Samha, Khalifa City, and Al Ghadeer.

The report reveals rents for high-end apartments surged 14% on islands like Yas and Saadiyat. Affordable flats remained stable with a 3% drop in certain areas.

Rental rates for budget villas increased mildly by around 5%. But luxury house rents jumped significantly, especially on the Yas and Saadiyat Islands. This indicates solid tenant demand.

The data shows promising rental yields for real estate investors in Abu Dhabi. Al Reef led at 8.04% for affordable flats, while Al Reem offered 6.65% for luxury apartments.

On the villa side, Hydra Village and Al Raha Gardens returned over 6% for budget and upscale units respectively. This continues to attract property buyers looking to generate passive income.

According to official figures, over 14,000 sales transactions worth AED 52 billion occurred in Abu Dhabi last year. The market saw positive shifts in both buying and leasing.

Industry experts say increased demand, attractive yields, and economic growth are driving the upswing. Luxury developers like Aldar continue launching new projects as well.

In short, Abu Dhabi’s high-end real estate segment experienced major gains in 2023. With prices and rents rising substantially, the outlook remains strong for sellers, landlords, and investors.

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