During the third quarter, a notable uptick has been observed in the prices and rents of luxury properties
Staff Writer, TradeArabia
Abu Dhabi’s property market continued its upward momentum in Q3 as well after outpacing previous quarters, particularly in the luxury segment.
Areas like Yas Island and Al Reem Island have emerged as hotspots, showing strong demand and impressive returns, according to dubizzle.
During the third quarter, a notable uptick has been observed in the prices and rents of luxury properties. Likewise, the affordable segment has sustained the trend with surges in sales and rental prices in certain areas, stated the key real estate platform for property seekers, tenants, and investors in the UAE.
As per the analysis of the latest trends, Q3 2024 has marked a period of growth and prosperity for Abu Dhabi’s real estate market.
Overall, the trends reflect the confidence of stakeholders in the market. Investment-friendly policies, transparency in transactions, digitalisation of processes and investment security have remained significant factors cementing this confidence.
“Abu Dhabi’s real estate market has thrived in Q3 2024, outpacing previous quarters, particularly in the luxury segment. Areas like Yas Island and Al Reem Island have emerged as hotspots, showing strong demand and impressive returns,” said Haider Khan, the CEO of dubizzle and Dubizzle Group Mena.
DARI also reports a significant rise in the sales value of off-plan projects, increasing from AED4.5 billion in Q2 2024 to AED5.4 billion in Q3 2024. This growth demonstrates confidence in the market, which will drive its continued upward momentum, stated Khan.
The capital’s economic stability and premier urban experience, along with landmark projects like the upcoming Jubail Islands, continue to attract international investment, fueling market growth, he noted.
“At dubizzle, we remain dedicated to empowering our users with the tools they need to make informed decisions in this vibrant market, solidifying our role as the leading platform for real estate listings in the UAE,” he added.
dubizzle highlights the following insights from Abu Dhabi’s property market in Q3 2024:
●Top Luxury Areas for Villas: Yas Island has remained the top choice for buyers and tenants seeking luxury villas. For the quarter, it recorded an average sales price of AED4.25 million and an average rent of AED226,000.
●Top Luxury Areas for Apartments: Al Reem Island has remained a favourite for both buying and renting luxury apartments, with an average annual rent of AED 99,000 and sales price averaging AED1.39 million.
●High Investment Returns for Luxury Properties: Al Jubail Island has provided the highest investment return of 6.82% for luxury villas, while Al Reem Island led the luxury apartment market with an estimated ROI of 6.85%.
●Top Affordable Areas for Villas: Al Reef has been the leading affordable area for villas, with an average sales price of AED2.16 million. For rentals, Mohammed Bin Zayed City has remained a preferred choice, offering villas at an average rent of AED144,000.
●Top Affordable Areas for Apartments: Al Reef has continued to be the most sought-after area for affordable apartments, with an average sales price of AED857,000. For affordable rental apartments, Khalifa City has topped the list with an annual rent of AED 44,000.
●Affordable Off-plan Projects: Royal Park in Masdar City has emerged as the most popular affordable off-plan apartment project, with an average sales price of AED883,000. For affordable villas, Al Reeman 2 in Al Shamkha remained the most searched project with prices averaging AED4.05 million.
●Luxury Off-plan Projects: In the luxury segment, the City of Lights in Al Reem Island has led the list with an average price of AED1.41 million. While Noya Viva in Yas Island has taken the lead in the luxury villa segment with an average price of AED3.37 million.
●High Investment Returns on Properties: Al Reef has recorded the highest ROI of 8.9% in the affordable apartment market, while Al Ghadeer has led the affordable villa segment with an ROI of 6.29%.
According to dubizzle’s search trend analysis, Al Reem Island, Yas Island and Al Raha Beach have consistently ranked among the most popular luxury areas to buy apartments in Abu Dhabi. High-end projects, tourist attractions and waterfront locations have helped these areas take the lead.
For affordable apartments, buyers have preferred Al Reef, Masdar City and Al Ghadeer in Q3 2024, it stated.
Much like the luxury apartment segment, Yas Island, Saadiyat Island and Al Reem Island continue to attract buyers for luxury villas, while for affordable villas, buyers have shown interest in Al Reef, Al Shamkha and Zayed City, it added.
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