A panoramic view of skyscrapers on Reem Island in Abu Dhabi. The UAE capital city’s real estate market has flourished in Q3, with areas like Yas Island and Al Reem Island becoming prime locations. — File photo
Robust demand and lucrative returns have propelled the total sales value of off-plan projects in Abu Dhabi, as the third quarter saw a 20 per cent increase compared to the previous quarter. Yas Island and Al Reem Island have emerged as property hotspots. The sharp rise in Q3 sales value to Dh5.4 billion from Dh4.5 billion in Q2 underscores the persistent strong demand and remarkable returns in the emirate’s vibrant property sector, particularly in the luxury segment where prices and rents surged significantly. The affordable segment also maintained the upward trend in the third quarter, with sales and rental prices rising in certain areas, according to real estate consultants.
Outperforming previous quarters, as the UAE capital city’s real estate market thrived in Q3, areas like Yas Island and Al Reem Island have become hotspots, demonstrating strong demand and impressive returns, according to Haider Ali Khan, CEO of Bayut & dubizzle and CEO of dubizzle Group Mena. “This growth reflects market confidence, which will fuel its continued upward trajectory. The capital city’s economic stability and premium urban experience, along with landmark projects like the upcoming Jubail Islands, continue to draw interest,” said Khan.
Real estate experts noted that the overall trends indicate the confidence of stakeholders in the market. “Investment-friendly policies, transparency in transactions, digitalisation of processes, and investment security have been key factors in bolstering this confidence.”
In the luxury villa category, Yas Island remained the top choice for buyers and tenants seeking luxury villas, while Al Reem Island was favored for both buying and renting luxury apartments in the third quarter. On Yas Island, villas recorded an average sales price of Dh4.25 million and an average rent of Dh226,000 during the quarter. Prices and rents for Al Reem Island luxury apartments averaged at Dh1.39 million and Dh99,000 respectively.
Al Jubail Island offered the highest investment return of 6.82 per cent for luxury villas, while Al Reem Island led the luxury apartment market with an estimated ROI of 6.85 per cent, according to Bayut & dubizzle data. Al Reef has been the leading affordable area for villas, with an average sales price of Dh2.16 million. For rentals, Mohammed Bin Zayed City has remained a preferred choice, offering villas at an average rent of Dh144,000.
Al Reef also recorded the highest ROI of 8.90 per cent in the affordable apartment market, while Al Ghadeer led the affordable villa segment with an ROI of 6.29 per cent. For the top affordable area for apartments, Al Reef has remained the most sought-after with an average sales price of Dh857,000. For affordable rental apartments, Khalifa City topped the list with an annual rent of Dh44,000.
According to market research data, the Royal Park in Masdar City emerged as the most popular affordable off-plan apartment project, with an average sales price of Dh883,000. For affordable villas, Al Reeman 2 in Al Shamkha remained the most searched project with prices averaging Dh4.05 million. For luxury off-plan projects, the City of Lights in Al Reem Island led the list with an average price of Dh1.41 million. Noya Viva in Yas Island took the lead in the luxury villa segment with an average price of Dh3.37 million.
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