Abu Dhabi’s real estate market experienced significant gains across rental rates, sales prices, and transaction volumes in the second quarter (Q2) of 2024, according to the latest report issued by the real estate services company, Asteco.
Rental Rates and Demand
The rental market in Abu Dhabi remained robust, particularly in upscale areas, the report showed.
Average apartment rents saw modest increases of one percent quarterly and two percent annually.
However, certain high-demand locations experienced more significant growth, with quarterly rises approaching five percent and annual increases of up to 10 percent.
Villas also performed well, reflecting a five percent increase over the past 12 months.
Prime areas such as Al Raha Beach, Saadiyat, Yas, and Reem Island saw particularly high demand, with some properties even having waiting lists.
Mid-tier properties, especially in central business districts and along the Corniche, experienced slight rental increases.
Comparable properties in prime investment areas like Reem and Yas Islands saw annual growth exceeding five percent.
In contrast, lower-end properties maintained stability through attractive lease terms.
Office Space and Business Confidence
“Business confidence in Abu Dhabi surged over the past two years, resulting in a steady influx of private and corporate investments. This fueled demand for high-quality office spaces, leading to significant annual rental growth,” the report stated.
Its findings showed that Grade A offices in key locations such as Abu Dhabi Global Market (ADGM) and Masdar City saw a notable increase in rental rates, with annual growth of around 10 percent and robust quarterly increases between three percent and eight percent.
Promising Potential
In Q2 2024, Abu Dhabi’s real estate market recorded 2,135 transactions, with 57 percent being off-plan sales.
Apartments “dominated” both off-plan and ready sales, accounting for 85 percent and 75 percent of their respective segments, according to Asteco.
“Abu Dhabi’s real estate market demonstrates promising potential for continued growth in 2024, supported by proactive government initiatives and strong economic fundamentals. This positive outlook anticipates the Emirate becoming an increasingly attractive hub for businesses and investments, further bolstering its economic landscape,” its report stated.
It also revealed that apartment sales prices in Abu Dhabi saw quarterly and annual increases of four percent and five percent, respectively, with high-quality properties in areas like Al Raha Beach, Saadiyat, and Yas Islands experiencing annual price hikes of around 10 percent.
Villas and townhouses in prime locations also registered price appreciation.
ALETIHAD
