The best ROIs in Abu Dhabi as identified by Bayut

Bayut released a report on property transactions in Abu Dhabi throughout 2023. Market trends were analysed along with the most popular areas of the capital with high return on investment.
Jan 31, 2024

One of the largest residential and commercial real estate portals operating in the UAE has published its annual report summing up the past year. Bayut has identified the most significant trends in the Abu Dhabi market based on the number of transactions and property values. The study looked at the most sought-after areas of the emirate in 2023 and the best destinations in terms of investment.

According to Bayut, the preferred location to buy luxurious apartments was on Al Reem Island, which recorded a return on investment of 6.6%. The area is undergoing rapid development and can offer investors attractive options of premium properties with prices of AED 1,048 (USD 285) per sq. ft.

The areas with constantly high popularity among wealthy individuals are Yas Island and Saadiyat Island. The average price per sq. ft of elite apartments on these islands is AED 1,332 (USD 363) and AED 1,942 (USD 529), respectively, which is 1.7% and 8.7% higher than last year. These neighbourhoods lead the market in terms of high purchase prices of villas as well. Limited supply and strong demand for this type of real estate are the driving forces behind the significant price growth. In 2023, the cost of one square foot of a luxury villa on Saadiyat Island increased by 13% to AED 1,934 (USD 527).

Investors looking to generate high profits from premium villas prefer the Al Raha Gardens area. In 2023, this neighbourhood was one of the top destinations and recorded an excellent return on investment of 6%.

Those interested in affordable segment properties found Al Reef to be an attractive option. Prices for apartments here have dropped by 2%, while villas have increased by just 1.3% in comparison to 2022. Investors favour this area due to good yield performance, which was 8% for apartments and 6.1% for villas.

Al Ghadeer is gaining popularity as an area that offers budget property options. It is possible to buy apartments in the district at AED 717 (USD 195) per sq. ft with an ROI of 7.1%. Favourable deals on affordable villas were available in Hydra Village, which appealed to investors due to its profitability of 6.8%.

The capital of the Emirates has witnessed a high demand for elite real estate for several years now. This dynamic will continue in 2024 and can be explained by the attractiveness of Abu Dhabi for wealthy buyers and investors alike. In order to meet the booming demand, the market is expected to receive new premium segment projects in the coming years.