Abu Dhabi real estate market trends and forecasts for 2024

In 2023, the Abu Dhabi real estate market showed steady growth. The number of sales transactions in the emirate has increased along with rents, and the high demand for purchase of residential and commercial properties has continued. Analysts predict that in 2024 the real estate market will continue to develop and set new records.

Real estate market development trends

The capital of the UAE set a course for sustainable development in 2023. In 2024, the Abu Dhabi authorities plan to continue implementing eco-initiatives in all spheres, including the construction of commercial and residential projects.

Experts also predict an increase in demand for luxury real estate - the housing which is most often chosen by the wealthy and super-rich. Therefore, in 2024, more ultra-luxury real estate will be built in Abu Dhabi.

Premium residences are generally located in developed areas, gated communities or complexes with unique internal infrastructure and a high level of service. Such housing is in demand among families with children, young couples and connoisseurs of luxury living from around the world.

Analysts: Abu Dhabi Real Estate Market Forecast 2024

In 2024, the Abu Dhabi real estate market is expected to undergo the following changes:

• Residential real estate prices will grow by an average of 5-7% due to increased living standards, investment in sustainable technologies, population growth and the construction of new projects in prestigious areas of Abu Dhabi.
• Off-plan real estate sales will reach new records. This conclusion can be drawn from the annual reports of the Property Finder portal. In 2021, transactions with off-plan real estate totaled 2,700, in 2022 - 5,000 and in 2023 - 10,000. Given this growth trend, we can safely predict that the number of transactions will increase significantly in 2024.
• Rents in the emirate will increase by 5-8%. This is due to an increase in demand for housing from expats, employees of foreign companies and businessmen.
• Areas such as Yas Island and Al Reem Island will remain popular with buyers and tenants. Developers plan to build more community facilities here;  schools, nurseries, clinics and health centres, park areas, sports grounds and shopping centres. Real estate prices will increase on Yas Island by 3-5%, and on Al Reem Island by 10-15%.
• The office rental market will recover. Post Covid-19, increasing numbers of foreign companies are opening their offices in Abu Dhabi. Experts expect the occupancy rates of office buildings to go up by 98% in 2024.
• Rental prices for retail space - which fell significantly during the pandemic - will rise. The projected growth in 2024 is 2-4%.

The most promising areas for living and investment

Increasing numbers of wealthy investors wish to preserve their capital or increase it by reselling or offering their real estate for rent. Among the popular areas for investment in 2024 are:

Al Reef

In 2023, the average ROI in this area reached nearly 8%. It has well-developed community infrastructure and entertainment facilities. The price of a 1-bedroom apartment starts at AED 400K (USD 109K), making housing here affordable for both living and investment.

Yas Island

Yas Island has considerable entertainment and recreational facilities. With theme parks, well-maintained beaches and five-star resorts, real estate prices here are significantly higher. The starting price for a 1-bedroom apartment is AED 1.4M (USD 381K), with an ROI of 6%. Yas Island is usually chosen for investment and its access to recreation.

Al Maryah

The island is developing rapidly, especially in regards to luxury real estate, and there are many business centres in the central part of the district. Therefore, Al Maryah is suitable for work and business, as well as for leisure and entertainment. In 2024, development in the area will accelerate, drawing more tourists, expats and investors from around the world.

Al Reem Island, with its developed infrastructure, and Saadiyat Island, with its iconic attractions, will remain popular areas for buying/renting ultra-luxury and premium real estate. Experts predict a steady increase in buy/rent prices in 2024 and the launch of new luxury projects on both islands.

Conclusion

Abu Dhabi's real estate market will continue to strengthen in 2024. The emirate will persist in its development, in particular by diversifying its economy, attracting new investment and improving living standards.

In 2024, investment in infrastructure development will increase in all areas of Abu Dhabi, leading to an increase in demand for real estate from foreign investors, expats and locals. Rental demand for commercial real estate is also expected to recover due to an increase in the number of foreign companies that plan to operate in Abu Dhabi.

The return on investment for budget real estate will remain at the same level, but premium residences will experience an increase. Developers will undertake more luxury projects and multifunctional premium communities to meet the growing demand for such real estate in 2024.