JobXDubai

The Abu Dhabi real estate sector is demonstrating 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.

Rental Market Update

The rental market for villas and apartments remained generally stable, with prime and high-end developments experiencing significant demand, leading to rental increases of 7% to 10% compared to the previous year, particularly for new contracts.

Sales Market Update

The sales market of Abu Dhabi witnessed a significant increase in transactions during the first quarter of 2024. Approximately 2,660 deals were recorded for apartments and villas, marking a notable 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, representing a 2% growth from the previous quarter.

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, but there was a notable surge observed within the upper and luxury segments located on Yas and Saadiyat Islands.

Villa sales prices experienced modest increases, ranging between 1% and 3% on a quarterly basis. However, year-on-year growth was more substantial, reaching 10% to 15%.

Office Space Rentals

The upward trend in rental rates for high-quality office space that began in 2023 continued into 2024. Some developments saw increases ranging from 5% to 7%, influenced by factors such as unit size and payment terms.

The limited availability of premium office space in Abu Dhabi, coupled with growing demand from expanding businesses driven by government efforts to attract foreign investment, has contributed to the surge in rental rates.

Stay tuned for more updates on the Abu Dhabi real estate market!