Luxury Property Prices in Abu Dhabi Rises

A significant price increase has been seen in the Abu Dhabi luxury real estate market in 2022, in accordance with the report from Bayut and Dubizzle. The surge in price can be explained by the growth of high-net-worth-individuals interested in Abu Dhabi properties, as well as the economic expansion.

The average price per sq. ft for apartments on Saadiyat Island has seen an increase of 13.2%, while the cost of villas appreciated by 12.7% annually which can be explained by the high popularity of beachfront properties. Another reason is the new visa amendments, allowing investors from all over the world to obtain a long-term residence permit and live in the UAE without any time measures with their families. The successful recovery from the coronavirus pandemic has also positively affected the economy of the country. The Statistics Centre – Abu Dhabi (SCAD) has published the annual basis with the latest government statistics data showing a 11.2% expansion of the emirate’s economy.

Last year Saadiyat Island saw a number of new projects being launched, including Louvre Abu Dhabi Residences, offering premium amenities and views of the famous museum, as well as Saadiyat Lagoons which is inspired by nature, and Grove District which will be located within close proximity to the upcoming Zayed National Museum.

In the popular destination of Yas Island, prices have risen by 6.1% for villas. One of the most attractive projects for investors wishing to make a profitable off-plan purchase on the island is Yas Acres.

In terms of price growth for luxury villas, Abu Dhabi mirrors the emirate of Dubai, which has seen a record in terms of ultra-luxury property transactions. Thus, 219 sales of homes valued from USD 10M took place in Dubai, while the price growth in the prime market reached 44%.

The number of transactions in Abu Dhabi were 5,892 in 2022, which is 38.5% higher than in the previous year, as stated by the property consultancy CBRE. In addition, in Q4 2022 the volume of transactions rose by 14.9% in comparison to 2021.

In Valustrat Consulting Outlook for 2022/2023, it has predicted that capital values in freehold villa communities will slightly increase, while prices for apartments are supposed to stabilize during the year. Launches of off-plan projects, offering payment plans and mortgage options might lead to a decreasing trend in ready-to-move-in property’s prices in 2023.

In 2022, the total number of completed and delivered units in the Emirati capital reached 3,856, and areas such as Al Raha Beach and Najmat Abu Dhabi became home to 78% of these properties. It’s planned that in 2023 7,924 units will be completed in Abu Dhabi, and according to CBRE, 38% of them will be located in Al Sowwah and Yas Island. The leading Emirati developer, Aldar Properties, plans to launch dozens of new projects in 2023 amid the recovery of the UAE real estate market.

As for rental prices, according to CBRE, the rental prices for apartments saw a decrease of 1.3%, while villas saw an appreciation of 0.5%. It’s predicted that rental costs won’t see any serious changes in 2023.

Abu Dhabi is a desirable destination for foreigners wishing to move to one of the developing cities in the world, as well as among investors wishing to generate a stable income. Among the latest projects which have already attracted the attention of the public are the ready-to-move-in development of Julphar Residence by RAK Properties, as well as the off-plan The Sustainable City Yas Island and Yas Park Views by Aldar Properties.