Abu Dhabi's property market is booming with increasing investment and high returns, according to Bayut’s Q3 2024 report. Key areas for affordable apartments include Al Reef, Al Ghadeer and Masdar City while luxury buyers favor Al Reem Island, Al Raha Beach and Yas Island.
Villas in Al Reef, Khalifa City and Al Shamkha are attracting significant investor interest with prices for affordable villas rising by up to 6% and luxury villas appreciating by 5%. An average price per sq ft for affordable apartments increased up to 2% whereas price hikes of up to 8% for luxury apartments with Saadiyat Island seeing the most significant increases.
Al Reef and Al Ghadeer offer some of the highest rental yields at 8.86% and 8.20%, respectively. Returns of up to 7.22% and 6.99% in in Yas Island and Al Reem Island. Hydra Village villas offer an 8.06% yield and Yas Island luxury villas provide a 6.50% ROI.
Source: PAN Finance
Off-plan projects are also gaining traction with Royal Park in Masdar City popular among affordable buyers and City of Lights in Al Reem Island favored by luxury investors.
In the rental market, demand for affordable apartments is high in Khalifa City with rental increases of up to 15% in some areas while rent for luxury apartments increased between 2% and 11% with Saadiyat Island seen the most price increase. Affordable rentals for villas in areas including Mohammed Bin Zayed City show slight increases while luxury rentals in Yas Island see varied trends.
Abu Dhabi's real estate sector shows no signs of slowing down supported by government initiatives and a focus on transparency, promising a bright future for investors and homeowners alike.