Abu Dhabi Property Market SURGES In Q1 2024: Time To Invest?

The property market in Abu Dhabi is doing well according to new numbers from CBRE. There were more property deals in the first 3 months of 2024 than last year. Over 2,795 homes were sold, up 22.6% from before.

Most of the increase came from sales of homes still being built (off-plan), which rose 18.1%. Resales of existing homes also went up a lot, by 34.5%.

During this time, apartment prices grew 4.3% on average compared to 12 months ago. Villa prices grew a smaller amount, 2.3%.

There were fewer rental agreements signed, 46,130 contracts, down 10.9%. This was because renewals dropped 15.5% and new tenants signing contracts fell** 2.4%**. However, rents still climbed – apartments up 4.5% and villas 1.1% higher.

New housing supply was limited, with just 80 units finished in Abu Dhabi’s first quarter. All were in Al Raha Beach. There is more to come, though, around 8,660 homes projected to be completed by the end of the year, over half in places like Yas Island .

Taimur Khan from CBRE says demand keeps Abu Dhabi’s property market busy. As more housing gets bought, supply goes down which pushes prices up more. He expects rental costs will rise in Abu Dhabi generally, with fancier areas doing even better.

Abu Dhabi Property had a good start in 2024. Sales jumped a lot even with little new construction. People are willing to pay higher prices, and rents shows the market is strong. If the economy holds up, property values and what tenants pay should keep heading north this year.