Abu Dhabi real estate market resilient, records 1.2% growth in Q1

MAYS IBRAHIM (ABU DHABI)

The Abu Dhabi real estate market demonstrated resilience and adaptability in the face of evolving economic conditions, according to the Abu Dhabi Real Estate Review Q1 2024 released by consulting and advisory group ValuStrat.

Residential Capital Values
The report noted that the ValuStrat Price Index (VPI) which tracks Abu Dhabi's residential market grew by 4.2 percent annually and 1.2 percent quarterly, reaching 117.2 points compared to 100 points at the start of 2021.

The capital values of apartments saw positive growth, rising by 2.1 percent annually to achieve 111.8 points.

However, it was outperformed by the villa segment, which recorded a 1.9 percent quarterly increase and a 6.3 percent year-on-year growth to reach 122.8 points.

Location-Specific Trends
The market research issued by ValuStrat also showed that Saadiyat Island emerged as a hotspot for annual capital gains during Q1 of 2024, with villas witnessing a significant surge of 15.2 percent.

Additionally, Villas in Al Raha and Mohammed Bin Zayed City showcased healthy year-on-year growth of 5.6 percent and 3.7 percent, respectively.

Rental Values
The VPI for rental values in Abu Dhabi maintained its steady growth of 5.7 percent annually and 1.2 percent quarterly to reach 111.0 points, compared to 100 points in Q1 2021, according to ValuStrat.

Villas commanded higher rents, with a 6.4 percent annual increase and a 1.3 percent quarterly rise, while apartments registered a 5 percent year-on-year increase and a 1 percent quarterly uptick.

Residential Supply
The report pointed out that Abu Dhabi also witnessed the completion of 80 apartments during the first quarter, representing 1.2 percent of the expected residential pipeline of 6,636 units for 2024.

Off-Plan and Ready Sales Transactions
The report further revealed that the average price for off-plan properties stood at Dh15,479 per sq m (Dh1,458 per sq. ft.), decreasing by 3.9 percent from the previous quarter but showed a significant 9.7 percent increase compared to last year.

Meanwhile, ready home prices surged by 6.1 percent quarter-on-quarter and 6.7 percent year-on-year, averaging Dh11,657 per sq. m. (Dh1,083 per sq. ft.).