Boom in Abu Dhabi real estate market

Abu Dhabi’s property sector is witnessing one of its best periods ever. This is explained by an increase in investment activity among the high net worth individuals (HNWIs).

There is a discussion about the emirate’s popularity among millionaires who prefer to settle on luxurious Yas Island, Saadiyat Island and the newly launched mega-project Jubail Island.

A total of 2K sales transactions of finished properties were recorded in Abu Dhabi during the first quarter of 2023, according to the DARI digital ecosystem.

The most popular areas in terms of purchase of affordable apartments are Al Reef and Al Ghadeer, which are located in the suburbs of Abu Dhabi. Al Reef and Khalifa City became the most requested locations for villas. Al Reem Island, Al Raha Beach, Yas Island and Saadiyat Island stand out in the luxury property sector.

Over the first quarter, the price of budget apartments decreased by up to 5%, while luxury ones increased in price by over 4%. The cost of affordable villas increased by more than 3%, and for luxurious residences it dropped by 1%.

In terms of rental rates for the first quarter of 2023, the luxury residence sector recorded an increase of 11%, while the budget property market saw an upward trend of 8%. Mohammed Bin Zayed City is more frequently chosen for renting low-cost villas, while Al Raha Gardens is preferred for luxury residences.

The increase in costs is pushing tenants towards buying a property rather than continuing to rent. This ensures that funds are directed towards acquiring a feasible long-term asset.