The latest Abu Dhabi 3rd quarter real estate review report from ValuStrat, a globally recognised consultancy specialising in multi-sector advisory services, has revealed insightful dynamics of Abu Dhabi’s real estate market. The report comprehensively analyses the residential, commercial, and hospitality sectors and underscores a market showing robust growth and market activity.
Haider Tuaima, Director and Head of Real Estate Research, shares his synopsis of Abu Dhabi’s real estate market.
According to him, in Q3 2024, Abu Dhabi’s property market continued its upward trend, with home prices rising as the ValuStrat Price Index (VPI) recorded a 1.7% quarterly and 5.3% annual increase, reaching 120.7 points. Rental values mirrored this growth, climbing 5.8% annually and 2.6% quarterly to 115 points from a baseline of 100 set in Q1 2021, indicating sustained demand and favourable market conditions.
Transaction volumes for ready properties surged, up 18.9% quarterly and 51.1% annually. Office sector performance was also strong, with the median sales price increasing by 9.2% quarterly and 15.3% annually, while asking rents in key commercial districts rose by 8.3% quarterly and 25.6% annually. Average occupancy rates in central business districts reached 90.2%, showcasing high demand, while industrial rental rates remained steady at the lower end and rose over 4% on the higher end.
Abu Dhabi’s hospitality sector also thrived, with 34,000 hotel keys and a notable occupancy rate of 79.9% in H1 2024. The Average Room Rate (ARR) increased by 9.5%, and Revenue Per Available Room (RevPAR) rose by 19.7% year-on-year.
He concludes that this consistent growth across residential, office, industrial, and hospitality sectors underscores Abu Dhabi’s mature and stable market conditions, solidifying its competitive position within the UAE’s real estate landscape.
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About ValuStrat:
ValuStrat is an international consulting group providing Advisory, Valuations, Research, Transaction Advisory, Due Diligence and Industrial Consulting services, working across various industry sectors. With 45+ years of experience, a network of 14 offices in 5 countries and a client base of 1,000 corporations across the Middle East, UK, Europe and Africa, ValuStrat assists diverse clients, from governments, multinationals, large local corporations and financial institutions to startups, SMEs and family businesses. For Valuation services, it is the preferred service provider to over 120 financial institutions across the EMEA region.
For a detailed perspective on the property market, visit: Dubai - Real Estate Review Q3 2024
