Today's Edition
ALLAN JACOB (ABU DHABI)
Abu Dhabi’s real estate sector remained robust in a sellers and renters market with luxury villas and apartment prices in prime areas surging by as much as 13% last year. But there were also options available for those seeking affordable apartments for rent, with a price drop of almost 3% in some areas, said property site Bayut in a new report.
With favourable market conditions, many people are buying property as investment while some residents are becoming homeowners to avoid paying huge amounts as rent.
Saadiyat Island was the most sought-after area in the emirate with a 8.73% jump in prices for luxury apartments and a huge 12.9% for high-end villas. Residents searching for sales price-per-square-foot in areas featuring affordable apartments have seen “moderate” declines of up to 2.05%, according to the site. However, affordable villas have seen an increase of up to 3.95% in price-per-square-foot.
Last year, DARI, Abu Dhabi’s online real estate platform, said there were 14,000 residential property (ready and off-plan) sales transactions at a total value of Dh52 billion. The platform comes under the Department of Municipalities and Transport and aims to secure real estate transactions and make them transparent for all stakeholders.
People were looking to purchase luxury apartments in Al Reem Island, Al Raha Beach and Yas Island, while Al Reef, Al Ghadeer and Masdar City were popular for affordable apartments.
Yas, Saadiyat and Al Raha Gardens were much in demand for those keen on buying high-end villas while Al Reef, Khalifa City and Al Samha were top of the list for those in the hunt for affordable villas.
Al Reef topped with 8.04% projected rental yield in the affordable apartment category, while Al Reem Island continued to offer a healthy 6.65% Return of Investment (ROI).
“What we witnessed in 2023 was a record-breaking year for the overall UAE real estate market and Abu Dhabi has also been a major contributor to that success. Local and international HNWIs continue their interest in UAE real estate as a prime market for investment, especially with landmark projects like Jubail Islands and Rahman Islands taking shape,” said Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group Mena.
Advertised rental prices for apartments in luxury areas have seen increases as high as 14%, mainly in island communities. “Affordable apartment rentals, meanwhile, have continued to stay competitive, with a price drop of almost 3% in some areas,” said Bayut.
However, affordable villas have witnessed rental increase of up to 4.91%. “Yas Island and Saadiyat Island have revealed 12.7% and 22.2% hikes in prices for luxury houses, potentially driven by a solid demand,” the report said.
Khalifa City and Al Khalidiya are a major draw for those seeking affordable apartments for rent, while Mohammed Bin Zayed City and Khalifa City are favoured by those looking for affordable villas. “In the luxury apartment segment, tenants in Abu Dhabi preferred Al Reem Island and Al Raha Beach for apartments, while Al Raha Gardens and Yas Island were favourites for premium villas,” the report said.
