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Abu Dhabi real estate sector sees record $493 million FDI in Q1 2024

The Abu Dhabi real estate market hit record levels of foreign direct investment in Q1 2024 at AED1.81 billion ($493 million).

The amount was injected by 487 individual investors, the Abu Dhabi Real Estate Centre (ADREC) said on Friday.

These investors, from source markets including India, Russia, Canada, the UK, Jordan, and China, significantly increased their investments compared to the same period last year.

“The performance of Abu Dhabi’s real estate market in the first three months of the year underscores the sector’s increasing appeal to international investors. The robust growth on show offers encouraging signs for the remainder of 2024, and ADREC stands ready to provide seamless services and support to all stakeholders connected to Abu Dhabi’s globally competitive real estate sector,” said Rashed Al Omaira, acting director general, ADREC.

Abu Dhabi real estate transactions reached AED19.4 billion in Q1 across 6,070 transactions. Of this, AED12.8 billion was secured through sales and purchases, representing 66 percent of the total volume with 3,724 transactions. Moreover, the emirate recorded AED6.6 billion in mortgage transactions at 2,328 deals.

The latest update from ADREC – an affiliate of the Department of Municipalities and Transport – Abu Dhabi (DMT) – illustrates strong investor confidence in Abu Dhabi real estate, and the increasing importance of the sector to the emirate’s wider vision for economic diversification.

Booming UAE market

According to recent data from Statista, the UAE real estate market is set to reach a value of AED2.6 trillion by the end of 2024.

Meanwhile a ValuStrat forecast says Abu Dhabi’s residential capital values will rise between 3 to 5 percent in 2024. The growth is underpinned by a strategic phase of expansion. This year, it is anticipated that freehold villa communities, in particular, will see modest increases while apartment prices will remain stable.

Moreover, along with the rise in the residential market, the Abu Dhabi property sector could also experience a boost in office property demand, ValuStrat said, adding that there is surging demand for Grade-A office spaces.

For a detailed perspective on the property market, visit:  Abu Dhabi - Real Estate Review Q1 2024