Abu Dhabi - Review 2023-2024 Outlook

The Abu Dhabi real estate market demonstrated resilient growth throughout 2023, characterised by a massive surge in off-plan sales volumes and a robust hospitality sector performance. This comprehensive review and outlook provides a valuation-anchored analysis of the residential, commercial, and hospitality sectors entering 2024.

• Residential capital values (VPI) recorded steady expansion, with villa prices accelerating 5.9% annually and apartment prices growing by 3.3% year-on-year.
• The off-plan residential market experienced an extraordinary surge, with sales volumes jumping 134.3% annually in Q1 2023 and 186.5% in Q2 2023.
• Residential rental values trended upward, increasing by 8.5% annually by the second quarter, while gross yields in the city averaged a healthy 7%.
• The hospitality sector performed strongly, with average room rates (ADR) increasing by up to 34% year-on-year and RevPAR experiencing a 30% surge in the first quarter.
• In the commercial sector, average occupancy among buildings in central business districts stood at a resilient 87%, supported by major new projects like the 37-storey office tower in ADGM on Maryah Island.

Institutional investors and family offices requiring a valuation-anchored baseline and forward-looking projection to navigate the 186.5% surge in off-plan volumes and strategise asset allocation.

Lenders and risk management teams seeking independent, evidence-based metrics on the rising residential rental values and 7% average gross yields to accurately underwrite real estate exposure.

Real estate developers requiring clear visibility into sub-market momentum and the robust demand for new project launches—such as the Sustainable City and Rahman Island—to strategically time upcoming pipelines.

Hospitality operators and tourism stakeholders monitoring the significant 34% rise in ADR and 30% RevPAR growth to optimise pricing and operational strategies.

Multinational corporations and corporate occupiers evaluating the 87% occupancy rate and new commercial developments to formulate strategic leasing and acquisition decisions.

This comprehensive review equips decision-makers with the empirical clarity required to navigate Abu Dhabi's evolving property landscape into 2024.

• Benchmark individual residential, commercial, and hospitality assets against authoritative, citywide capital value trajectories and historical performance metrics.
• Understand the precise valuation dynamics driving the outperformance of the villa segment and the record-breaking off-plan transaction volumes.
• Support complex pricing, acquisition, commercial leasing, and lending decisions backed by an independent, evidence-led valuation framework.
• Evaluate macroeconomic indicators, including IMF GDP projections and Consumer Price Index (CPI) trends, to anticipate long-term market impacts.