Bayut’s 2024 Annual Real Estate Market Report: Abu Dhabi’s Property Market Continues To Thrive

Bayut, the leading property portal in the UAE, has released its Abu Dhabi Annual Property Market Reports for 2024. The reports reveal significant growth across both the affordable and luxury sectors.

Abu Dhabi Residential Property Sales Analysis

• Al Reem Island stood out as the premier choice among potential homebuyers looking for affordable yet upscale apartments in Abu Dhabi, with Al Reef and Al Ghadeer also emerging as popular options for buying affordable apartments in the capital city.
• Average price per square foot for properties for sale in the affordable apartment sector have generally trended upwards, with most areas recording increases between 2% and 20%. Al Ghadeer has shown the most significant price growth at 19.8%, suggesting rapid development and increasing popularity. Baniyas has been the only area with a price decline (-1.92%), which could potentially present favourable investment opportunities moving forward.
• Al Raha Beach has been the most searched location for buying luxury apartments. Other areas that have captured investor interest when it comes to upscale apartments include Yas Island and Saadiyat Island. Sales prices for luxury apartments in popular areas have recorded price increases of between 5% and 32%. The most prominent appreciations have been recorded in Saadiyat Island, where prices grew by 32.4%.
• Al Reef has emerged as the most popular community for buying affordable villas in Abu Dhabi. Other preferred areas include Khalifa City and Abu Dhabi Gate City. The average price-per-square-foot for affordable villas has increased by between 6% and 18%, with Al Ghadeer recording rises of 4% in property prices. However, Khalifa City and Abu Dhabi Gate City have witnessed marginal declines of under 2%.
• Yas Island has been the undisputed favourite for luxury villa purchases during 2024, with Al Raha Gardens and Saadiyat Island also making it to the list of popular areas. Prices for luxury villa sales have increased by between 2% and 23%, with Yas Island reporting the highest price surge at 1%.

Return on Investment (ROI) Trends for Properties for Sale in Abu Dhabi

• Al Reef has offered the highest average ROI of 64% for budget-friendly apartments in the UAE capital, making it an attractive option for investors. Al Ghadeer isn’t far behind, yielding 8.41% returns in the affordable apartment category.
• Those interested in luxury apartment purchases have been inclined towards Yas Island, which has an ROI of 07%.Al Raha Beach, with an ROI of 6.09%, has also presented a solid choice for buying high-end apartments.
• Hydra Village reported the highest ROI of 8.09% for budget-friendly villas. With 53%, Al Ghadeer has also offered handsome returns for investors in the affordable villa market.
• Investors and HNWIs looking for luxury villas have favoured properties in Yas Island, which recorded an ROI of 6.28%. Al Raha Gardens’ solid ROI of23% also represented a favourable investment option.

Abu Dhabi Sales Property Market Report 2024 – Popular Off-Plan Projects Making the Mark

Abu Dhabi’s off-plan property market has remained attractive, appealing to investors and homebuyers in the affordable and luxury segments.

The following off-plan projects have emerged as the most prominent developments in 2024:

Apartments

• Affordable Segment:City of Lights on Al Reem Island, Al Reeman 1 in Al Shamkha and the eco-friendly Royal Park in Masdar City have been the top picks for savvy investors in the affordable apartment category.
• Luxury Segment: Luxury apartment seekers have shown significant interest in Yas Bay on Yas Island, Saadiyat Island’s Cultural District, and the breathtaking Al Maryah Vista on Al Maryah Island.

Villas

• Affordable Segment: For budget-conscious buyers searching for villas, Reem Hills on Al Reem Island, Bloom Living in Zayed City and Al Reeman 2 in Al Shamkha all offer favourable opportunities to own desired real estate at competitive price points.
• Luxury Segment: For upscale off-plan villas, those looking for luxury have chosen the opulent Saadiyat Lagoons on Saadiyat Island and the magnificent Yas Acres on Yas Island.

Abu Dhabi Rental Property Market Trends 2024

• Bayut’s analysis of the Abu Dhabi rental market reveals that in 2024, Al Reem Island, Khalifa City, AlKhalidiyah, Al Muroor and Al Shamkha remained the top choices for renting affordable apartments.
• The Abu Dhabi rental market has shown strong growth, particularly in affordable areas for apartments, with most locations experiencing double-digit price increases between 10% and 20%. The highest value appreciations, all exceeding 18%, have been recorded for studio and 1-bedroom apartments in Al Reem Island, studio apartments in Al Muroor, and 1-bedroom flats in Al Khalidiyah.
• Al Raha Beach, Corniche Area, Saadiyat Island, Yas Island and Corniche Road have been the top choices for high-end apartment rentals, as revealed in Bayut’s 2024 Abu Dhabi Annual Property Rental Market Report. Luxury apartment rentals in Abu Dhabi have recorded upticks of between 8% and 26%. The most significant price increases, exceeding 25%, have been recorded for 1-bedroom units in Saadiyat Island and Yas Island, showcasing its growing appeal among luxury seekers.
• With strong growth indicators across all unit types, Khalifa City has been the most searched choice for those seeking affordable villas. Mohammed Bin Zayed City (MBZ City), Madinat Al Riyadh, Shakhbout City and Al Reef also attracted tenants looking for affordable houses in the capital city. Rental costs for affordable villas in popular areas of Abu Dhabi have witnessed surges of up to 14%, with the 3-bed villas in Khalifa City recording the highest appreciation at 13.5%.
• Yas Island has continued to captivate high-end renters on the luxury front. Al Bateen has also appealed to those seeking luxury villa rentals in Abu Dhabi. Prices for luxury villa rentals in Abu Dhabi have increased by between 1% and 20%. Overall, 6-bed luxury villas have seen the most significant appreciation, particularly in Al Bateen and Al Mushrif, where rental costs have grown by 19.9% and 10.7%, respectively.

Abu Dhabi’s real estate market is thriving, driven by transparency, innovation and strategic foreign investment. With its world-class attractions and family-friendly lifestyle, the emirate attracts both local and international buyers. The market also benefits from strong investor confidence, supported by government initiatives and ongoing developments.

Commenting on the findings, Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, said:

“2024 has been an incredible year for Abu Dhabi’s real estate market. At Bayut, we’ve witnessed over 15.2 million visits to Abu Dhabi property listings, showing the robust demand the capital has experienced throughout the year. The growing interest in high-end properties also reflects Abu Dhabi’s evolution into a global city that offers an unparalleled quality of life, while the increasing availability of affordable options ensures the city remains inclusive and accessible.

As we look ahead to 2025, both the off-plan and ready markets appear set for an exciting year. With many new projects in the pipeline in the island communities and a significant number of handovers from late 2024 carrying into the new year, Abu Dhabi is well-positioned to further solidify its reputation as a premier destination for investors and residents alike.”