JobXDubai

Abu Dhabi experienced a significant upturn in its real estate sector last year, maintaining consistent prices, as highlighted in a CBRE report.

The capital city witnessed a remarkable 77.8% rise in residential transactions, totaling 11,235 in 2023, driven by a striking 104% jump in off-plan sales and a 27.7% uplift in secondary market transactions.

During the fourth quarter of 2023, Abu Dhabi registered 3,107 real estate transactions, marking a 40.3% increase year-on-year. This period saw off-plan transactions ascend by 41%, while secondary market deals grew by 38.1%.

Despite these vigorous activities, the average price for apartments saw a modest 1.1% increase, and villa prices largely remained steady compared to the previous year. Rental rates also reflected a slight upward trend, with apartment rents rising by 2% and villa rents by 0.8% over the same period.

By the end of Q4 2023, the annual average rents for apartments and villas in Abu Dhabi were AED64,996 ($17,700) and AED163,098 ($44,400), respectively.

On the supply side, Abu Dhabi welcomed 2,961 new units in 2023, predominantly in Shams Abu Dhabi and Najmat Abu Dhabi, accounting for 59.4% of the total new stock. Looking forward, the city anticipates the completion of an additional 4,438 units, with a significant 69.1% slated for Yas Island and Al Maryah Island.

Taimur Khan, Head of Research – MENA at CBRE, commented on the market’s strong finish in 2023, emphasizing the sustained demand and reduced supply contributing to potential price growth. Khan predicts rental rates in Abu Dhabi will continue to climb, particularly in prime locations.