Abu Dhabi real estate market analysis

The property market in Abu Dhabi demonstrates a high degree of resilience in the face of increasing interest rates and inflation. The emirate has reached the maximum sales level for completed and off-plan projects, not seen in almost a decade.

In the second quarter of 2023, about 1,400 apartments were released on the Abu Dhabi market, while 2,200 apartments and 850 villas are expected to be handed over by the end of 2023. The new residences were distributed across recognised International Investment Zones. Most of the real estate has been released within the areas of Saadiyat Island and Al Reem Island.

Several new residential complexes are in the planning and design stage, and official announcements are anticipated later in 2023 and in early 2024.

In Abu Dhabi’s property market, rental rates for both apartments and villas in elite complexes rose by 2–5% over Q2 2023.

The most sought-after communities are prime villa neighbourhoods on Yas Island and Saadiyat Island, the rental value of which has risen by 10% compared to the same period in 2022.

Real estate objects in the middle and budget segments remained relatively stable when the nominal rental rate changed.

There was a strong demand for office spaces, especially in the Grade A and B+ category. This interest was shown by both existing enterprises seeking to expand their footprint and new companies on the market.

Sales prices for completed apartment complexes turned out to be relatively stable during the second quarter of 2023, with an average 1% increase per year. Average costs for villas for sale in the UAE capital rose by about 2% throughout the quarter.

Prices for prestigious villa communities continue to outperform, and in some of the developments, the rise in sales costs reaches 6%.The sale price in prime off-plan projects on Saadiyat Island and Yas Island varies from AED 1.5K (USD 408) to AED 3.8K (USD 1K) per square foot.