The Abu Dhabi real estate sector has seen major increases to sales and property rental prices, according to the latest Cushman & Wakefield Core’s Abu Dhabi Market Update YTD 2024.
The real estate firm’s study reveals steady growth and resilience in Abu Dhabi’s residential markets.
So far this year, 2,431 units have been handed over, including 1,315 apartments in Al Raha Beach, Al Maryah Island, and Masdar City, as well as 1,116 villas in Jubail Island, Yas Island, and Saadiyat Reserve.
Abu Dhabi real estate 2024 An additional 1,950 units are anticipated for handover later this year, bringing the total for 2024 to approximately 4,300 units, with the majority of upcoming deliveries expected in Reem Island and Yas Island.
Prathyusha Gurrapu, Head of Research and Consultancy at Cushman & Wakefield Core said: “Although off-plan transactions still make up a significant portion of total volumes, we have seen a growing shift toward existing properties in the year-to-date.
“Ready property transactions increased by 54 per cent compared to the same period in 2023, reflecting a growing share of end-user buyers seeking ready-to-move-in homes”.
On the other hand, off-plan sales transactions saw a decrease of 19 per cent YTD 2024 compared to the same period in 2023. This is due to limited launches of new projects and lower launch volumes.
Citywide villa prices have seen a notable 10 per cent increase year-on-year, driven by strong demand in luxury areas such as Saadiyat Beach Villas (+11 per cent) and Yas Acres (+7 per cent).
Citywide apartment prices also rose by 8 per cent, with prime districts witnessing significantly higher increases as Saadiyat Island leads the market with a 30 per cent price increase, followed by Yas Island (+17 per cent) and Reem Island (+9 per cent).
Citywide rents are rising at a faster rate than sales prices, leading to a compression in yields.
Prathyusha said: “Abu Dhabi has witnessed the sharpest annual increase in rents in the last decade. The rental market in Abu Dhabi saw strong growth in rents with villas rising to 10 per cent and apartments to 16 per cent as compared to the previous year.”
Villas in Saadiyat Island had a significant rental increase of 14 per cent followed by Yas Acres with 13 per cent and Al Reef Villas with an 8 per cent rise.
In the apartment districts tracked by Cushman & Wakefield Core, Yas Island witnessed the highest increase of 15 per cent in rental prices followed by Saadiyat Island at 14 per cent and Reem Island at 12 per cent increases.
Areas like Yas Island are becoming more desirable for tenants, driving rental increases, while established luxury communities like Saadiyat Island are leading rental market growth.
