Overall Market Performance
According to figures released Monday, Abu Dhabi real estate prices increased more quickly in the third quarter than they did in the first. The ValuStrat Price Index rose from 100 base points at the beginning of 2021 to 120.7 points, a 1.7% quarterly and 5.3% yearly rise.
Property Price Analysis
Villa prices increased 2.2% every quarter and 8.2% annually to reach 128.3 points on the valuation-based index. The apartment segment achieved 113.4 points with a 1% quarter-over-quarter and 2.2% YoY acceleration. Apartments were valued at Dh10,667 per sq m (Dh991 per sq. ft.), villas at Dh8,127 per sq m (Dh755 per sq. ft.), and the weighted average house value this quarter was Dh9,924 per sq m (Dh922 per sq. ft.).
Area-Specific Performance
Saadiyat Island experienced the most annual capital gains this quarter, with property prices rising 19.9%. Mohammed Bin Zayed City saw a yearly increase of 3.5%, while Al Raha’s villas grew by 7.5%. The cost of homes in Al Reef and Hydra Village stayed the same from the previous year. According to yearly capital gains, the best-performing apartments were found in Al Reef (4.9%), Saadiyat Island (4.5%), and Al Muneera (3.6%).
Rental Market Trends
The Abu Dhabi rental value index (VPI) grew steadily from 100 points in Q1 2021 to 115 points, with annual growth of 5.8% and quarterly growth of 2.6%. Rents increased 2.7% quarterly and 5.7% annually, putting villas at 121.6 points. Apartments scored 109.2 points, up 2.4% from quarter to quarter and 6.0% from YoY. The average gross return was 7.5%, with villas yielding 6.5% and apartments yielding 7.9%. The occupancy rate was 85.7% on average.
New Development Pipeline
During the first 3 quarters of 2024, Abu Dhabi finished 1,442 apartments and 593 villas, which accounted for 22.8% of the anticipated residential pipeline for the year. The total number of residential units scheduled for completion in 2024 is 8,907.
Off-Plan Market Performance
Off-plan property prices averaged Dh18,384 per sq m (Dh1,708 per sq. ft.), up 33% annually and 32.5% quarterly. Off-plan homes’ average ticket size dropped to Dh3.4 million, a 4.6% annual decline. Due to fewer project launches this year, Abu Dhabi’s off-plan transaction volume, which accounted for 41.2% of total sales, decreased 36.7% from quarter to quarter and 58.6% from YoY.
Ready Properties Market
Ready-to-move-in prices averaged Dh11,507 per sq m (Dh1,069 per sq. ft.), up 6.4% annually but decreasing 3.6% every three months. Although it declined 3.3% from quarter to quarter, the average ticket size for ready-to-move-in properties stayed constant at Dh2.2 million. The volume of ready-to-move-in transactions increased 51.1% annually and 18.9% quarterly.
Transaction Analysis
In the 3rd quarter of 2024, 1,495 cash transactions of ready-to-move-in residences and 2,594 mortgage transactions across all Abu Dhabi real estate market asset classes. Cash transactions totaled Dh4.2 billion, while mortgage transactions accounted for Dh13.5 billion of the overall sales value.
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Market Outlook
“Consistent growth across residential, office, industrial, and hospitality sectors underscores Abu Dhabi’s mature and stable market conditions, solidifying its competitive position within the UAE’s real estate landscape,” said Haider Tuaima, director & head of real estate research, ValuStrat.
