JobXDubai

The Abu Dhabi real estate sector is showing promising signs of growth in 2024, with a gradual upward trajectory anticipated in the coming months. According to the Asteco Q1 2024 real estate report, upmarket areas have seen rental increases of 7 to 10%.

The report highlights that the Abu Dhabi market saw the completion of 800 residential units across various Investment Zones, with a significant portion concentrated in Al Raha Beach. Notably, the launch of Yas Canal, a new mega villa project, is expected to deliver 1,146 units exclusively available to UAE nationals by Q4 2027.

The rental market for villas and apartments remained stable in Q1 2024, with prime and high-end developments experiencing significant demand, leading to rental increases of 7% to 10% compared to the previous year. The sales market witnessed a significant increase in transactions, with approximately 2,660 deals recorded for apartments and villas, marking a 17% rise compared to the same period last year.

Off-plan sales constituted a substantial portion of these transactions, accounting for about 1,840 deals, or approximately 69% of the total. Apartment sales comprised approximately 73% of the total off-plan and nearly 78% of completed property transactions during this period.

Average apartment sales prices across the market remained relatively unchanged, while there was a notable surge observed within the upper and luxury segments located on Yas and Saadiyat Islands. Average villa sales prices experienced modest increases, ranging between 1% and 3% on a quarterly basis, with year-on-year growth reaching 10% to 15%.

The upward trend in rental rates for high-quality office space that began in 2023 continued into 2024, with some developments seeing increases ranging from 5% to 7%. This growth is driven by factors such as unit size and payment terms, as well as limited availability of premium office space in Abu Dhabi and growing demand from expanding businesses.