Real estate and hotel business drive the economy of Abu Dhabi

Similar to Dubai, Abu Dhabi has demonstrated stable growth in two sectors of the economy in 2023: residential real estate and tourism. According to the REIDIN report, the average sale price of residential real estate in Abu Dhabi increased by 3.2% in Q3 of 2023. The total transaction value for nine months grew by 56% to AED 67.8B (USD 18.5B), and in October, price growth accelerated to 3.9%. Average rental rates continued to rise, increasing by 0.8% and 2.6% in Q3 and October 2023, respectively. The rental yield for residential properties reached 6.2% in Q3, increasing to 6.3% in October 2023.

The tourism business in Abu Dhabi also showed positive results, with passenger traffic reaching nearly 6M in Q3 of 2023, and is expected to increase significantly after the opening of Terminal A at Abu Dhabi International Airport. The number of guests in the emirate’s hotels increased by 31% to 3.2M compared to the previous year, with visitors staying an average of two days in the capital. This duration was mainly due to business trips and exploring the capital.

From July to October 2023, Abu Dhabi experienced a significant surge in interest from tourists, expatriates and investors, as evidenced by high real estate sales and hotel occupancy rates in the capital.