Today's Edition
Khaled Al Khawaldeh (Abu Dhabi)
After strong performance in 2024, Abu Dhabi real estate market is set to continue to its growth trajectory, according to several analysts and real estate databases that predict continued demand in 2025.
According to Top Luxury Property, a UAE-based property consulting firm, Abu Dhabi attracted over Dh834 million in foreign direct investment during the second half of 2024, marking a three-fold increase compared to the same period in 2023. Much of this was directed into the luxury market, a trend that they predict will continue into the new year thanks to new legislation, transparency measures and generally strong economic conditions.
"As we move toward 2025, Abu Dhabi real estate landscape is set for even more growth with attractive investment opportunities, increased transparency, and strong government support," the Luxury Property report said.
The firm predicts strong price growth across various segments of the market, projecting 10-12% price increases in the luxury villas, 6% in affordable apartments and 7-9% in premium flats.
Much of this is based on the success of government-led initiatives and strong economic factors, including the public price index released in 2024 and the expansion of Abu Dhabi Global Markets free zone to include Reem Island.
New year is set to reap the rewards of increased investor confidence due to several transparency measures introduced in 2024. Abu Dhabi secured fifth position for improvements made from 2022-24 in JLL's 2024 Global Real Estate Transparency Index (GRETI). Moving up four places to 41st position, the emirate was recognised among the top global improvers for scaling digital capabilities, implementing strong anti-money laundering (AML) and beneficial ownership (BO) regulations, and increasing the availability of market data for established and start-up market providers.
Foreign investors are expected to drive much of the growth in 2025, continuing the trend of previous years incentivised by more relaxed legislation on property ownership, long term visas for investors and strong rental yields.
According to property consultancy Cushman and Wakefield, residential rents in Abu Dhabi had witnessed the sharpest increase in over a decade with a 15% YoY rise by mid-2024. This coincided with a 9% rise in residential prices, which they said was bound to entice foreign investors.
Heider Ali Khan, CEO of Bayut and Dubizzle, said that strong numbers and premier projects on Abu Dhabi's periphery islands - Reem, Saadiyat, Hudayriat, Yas and Jubail - would add to the growing appetite from international investors.
"This growth demonstrates confidence in the market, which will drive its continued upward momentum. The capital's economic stability and premier urban experience, along with landmark projects like the upcoming Jubail Islands, continue to attract international investment," he said in a statement in 2024 real estate results.
