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Abu Dhabi office sales prices up 38.7% YoY in Q4 2023 – ValuStrat

Office sales prices in Abu Dhabi grew by 38.7% year-on-year in the fourth quarter of 2023 with asking rents rising by 13.3%, according to ValuStrat.

Aldar Properties achieved 97% occupancy across its prime Grade A commercial properties during Q4 2023, including its four buildings at Abu Dhabi Global Market (ADGM), HQ, and International Tower, the consulting group said in its recent report about Abu Dhabi real estate.  

High growth in the market is reflected in the surging demand for Grade-A office spaces, it said, adding, government initiatives, including remote work and retiree visa programmes aim to lure foreign investors and professionals, thereby providing additional support to the market. 

Meanwhile, Abu Dhabi house prices are expected to continue their trend of modest freehold villa price increases and apartment prices remaining stable in 2024. 

ValuStrat said the emirate’s real estate sector is poised to experience steady growth in the coming year, with residential capital values expected to rise between 3% and 5%. 

Lower mortgage rates in 2024 could boost transactions while off-plan transactions decelerate. Residential capital values grew by 4.2% YoY in Q4 2023 while rental values grew by 6.4%, it said.  

In the hospitality sector, the report forecast a foreseeable improvement in key performance indicators and return to pre-pandemic levels or possibly higher. 

Occupancy grew by 3% in January to October 2023 YoY to reach 74%, the research said.

Meanwhile, the average daily rate grew to AED 420 ($114.36) up 23% YoY and revenue per available room was up 26% to AED 309.

 For a detailed perspective on the property market, visit: Abu Dhabi - Review 2023-2024 Outlook