The sustained demand for luxury apartments in Abu Dhabi, particularly in prime locations, has been the primary driver behind price increases of up to 8 percent. According to recent data, luxury villa prices in the city have also continued to appreciate, with the average price per square foot rising by 5 percent in the third quarter of 2024.
Bayut.com, a leading property portal, reported that opulent villas on Yas Island experienced the highest increase in average price per square foot, at 4.94 percent, due to their proximity to attractions such as SeaWorld Abu Dhabi, Yas Marina Circuit, and Ferrari World. Meanwhile, affordable apartments saw minor price upticks of over 2 percent.
The highest price increase for apartments was recorded on Saadiyat Island, driven by strong demand for luxury properties. In the affordable villa market, prices increased by up to 6 percent, with Khalifa City villas seeing a rise of 5.65 percent per square foot.
During the third quarter of 2024, key locations for affordable apartment purchases included Al Reef, Al Ghadeer, and Masdar City, while luxury apartment seekers favored Al Reem Island, Al Raha Beach, and Yas Island. Villas in Al Reef, Khalifa City, and Al Shamkha attracted the most interest in the affordable segment, with luxury villas on Yas Island, Al Raha Gardens, and Saadiyat Island leading the market.
Yields for affordable apartments were highest in Al Reef and Al Ghadeer, offering returns of 8.86 percent and 8.20 percent, respectively. Luxury apartments on Yas Island and Al Reem Island enjoyed returns of up to 7.22 percent and 6.99 percent. In the affordable villa segment, Hydra Village generated yields of 8.06 percent, while Abu Dhabi Gate City offered 6.69 percent.
Yas Island remained the most desirable location for luxury villas, with an ROI of 6.50 percent, closely followed by Al Raha Gardens at 6.42 percent. The off-plan property market in Abu Dhabi continued to thrive, with Royal Park in Masdar City and City of Lights in Al Reem Island being top choices for affordable and luxury apartment buyers, respectively.
In the villa market, Bloom Living and Saadiyat Lagoons were popular among affordable and luxury villa buyers. Rental trends in Abu Dhabi saw shifts, with Khalifa City, Al Khalidiya, and Al Shamkha being popular for affordable apartments, and Al Reem Island, Al Raha Beach, and the Corniche Area for luxury apartments.
The Abu Dhabi residential property market remains robust, with ongoing government support and infrastructure development contributing to its strength. Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, highlighted the market's transparency and investment attractiveness, with the government's digital initiatives and ADREC's efforts to streamline regulations expected to further boost the market.
