Abu Dhabi’s real estate sector continues to remain robust, according to the latest quarterly report by ValuStrat. The second quarter of 2024 witnessed sustained growth across all segments.
Residential property values soared, with villa prices surging by an impressive 7.3% year on year (YoY) and 2.2% quarter on quarter (QoQ). Apartment prices also recorded commendable growth, rising 1.4% YoY and 0.4% QoQ.
Saadiyat Island saw the highest annual capital gains this quarter, as villas rose 17.7%. Villas in Al Raha saw growth of 6.7% YoY, and Mohammed Bin Zayed City up 3.3% YoY. Best performing apartments in terms of annual capital gains were located in Al Muneera Island (3.9%), Saadiyat Island (3.8%), and Al Reef (3.6%).
Rentals for apartments and villas too saw steady increase in the second quarter. Asking rents for apartments in Abu Dhabi city averaged at Dh103,700 per annum. The highest rental growth on a quarterly basis was observed in Al Reef (3.8%) and Al Muneera (3%). Average annual apartment asking rents are: Studios: Dh53,000, 1-bed: Dh78,000, 2-beds: Dh117,000 and 3-beds: Dh167,000. Citywide villa asking rents averaged Dh233,700 per annum. On a quarterly basis, villa rents grew the highest in Mohammed Bin Zayed City (2.5%) and Al Reef (2.4%). Annual rents for 3-beds were Dh167,000, 4-beds Dh234,000 and 5-beds were Dh299,000.
Abu Dhabi saw the completion of 852 apartments and 593 villas during the first half of 2024, representing 16.5% of the expected residential pipeline for the whole of 2024. A total of 8,732 residential units are expected to be completed this year.
The office market also exhibited exceptional performance, with asking rents skyrocketing by 13.7% annually and 9.1% quarterly. During the second quarter, the city’s estimated office stock stood at 42 million sq. ft. of Gross Leasable Area. Average occupancy among buildings within the city’s central business districts stood at 88.7%.
In the hospitality sector, there were no notable completions during the last three months. Abu Dhabi city’s total stock stood at 34,000 hotel rooms and hotel apartments. According to the Department of Culture and Tourism, the emirate aims to boost the number of hotel rooms to 52,000 to support the Abu Dhabi Tourism Strategy 2030.
Despite a decline in off-plan sales due to fewer project launches, the overall real estate market demonstrated resilience. The consistent increase in residential and commercial property values, coupled with rising rental rates, underscores Abu Dhabi's position as a sought-after investment destination.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, commented: "The steady increase in rental values and transaction volumes indicates a sustained demand and investor confidence in Abu Dhabi’s real estate market."
For a detailed perspective on the property market, visit: Abu Dhabi - Real Estate Review Q2 2024
