Today's Edition
LAMEES OBEIDAT (ABU DHABI)
A recent analysis by Bayut, a leading property portal in the UAE, paints a positive picture of Abu Dhabi’s real estate market in the first quarter of 2024. The analysis indicates growth in both the sales and rental sectors, with some areas experiencing particularly significant increases in prices and overall transaction volume.
Luxury Market Sets New Records
Further solidifying Abu Dhabi’s status as a luxury property destination, March 2024 saw a record-breaking sale by Aldar, the Emirate’s biggest listed developer. A three-bedroom penthouse at Nobu Residences Abu Dhabi fetched a staggering Dh137 million ($37 million), becoming the Emirate’s most expensive apartment ever sold. This penthouse also achieved the highest price per square metre in Abu Dhabi history, exceeding Dh96,000 per square metre.
Investor Confidence on the Rise
Abu Dhabi’s robust market performance is attracting significant investor interest. Data from DARI, Abu Dhabi’s digital real estate unified platform, reveals a substantial number of residential property sales transactions in Q1 2024. Over 4,674 transactions were recorded, with a total value exceeding Dh9.6 billion.
The Bayut analysis delves deeper, highlighting Abu Dhabi’s potential as a lucrative investment destination. Al Reef emerged as a strong option for investors seeking a return on their investment in affordable apartments, with a projected return on investment (ROI) of 8.30%. Luxury apartments on Al Reem Island also maintained a healthy projected rental yield of 6.90%.
Looking Ahead: Continued Growth Expected
The positive trends observed in Q1 2024 are expected to continue in the coming quarters, further solidifying the city’s position as a lucrative destination for property investment. With upcoming mega-projects like Jubail Islands and Ramhan Islands set to come to fruition, the future looks bright for Abu Dhabi’s thriving real estate sector, attracting both local and international investors seeking a share in the city’s ongoing growth.
Commenting on the findings, Haider Ali Khan, CEO of Bayut and Dubizzle Group MENA, expressed his optimism about the market’s trajectory. “The Abu Dhabi market is carrying the momentum of its strong 2023 performance into 2024,” he remarked. “When we look at the current market trends, it’s quite clear that there is increasing confidence among both local and international HNWIs (high-net-worth individuals) that Abu Dhabi real estate is abundant with opportunity and is a prime market for investment.”
