The year 2024 witnessed a notable surge in Abu Dhabi’s residential sales and rental prices amid strong market demand
Research claims that due to increased demand and a shortage of supply in the emirate, residential sale prices and rents in Abu Dhabi increased last year.
Cushman & Wakefield Core reported on Thursday that although rents jumped by 20% in 2024, home sale prices increased by 11% yearly.The yearly increase in villa prices was 15%, with Khalifa City seeing the largest increase at 30%, followed by Al Reef and Yas Island at 13%. As for apartment prices, they went up by 10% with Saadiyat Island seeing the biggest increase at 28%. The report further shows that price hikes for Yas Island and Reem Island during this time were 14% and 12%.
Prathyusha Gurrapu, head of research and consulting at Cushman & Wakefield Core, stated that high price rises were caused by lack of supply, creating an uprise in demand in 2024. “Even though new supply is anticipated to help in 2025, demand is still high, which keeps pressure on sales prices and rents.”The expansion of the 10-year golden visa program, government programs like residency permits for remote workers and retirees, and general economic growth in the UAE amidst diversification attempts have all contributed to the property market’s continued excellent performance.
In 2024, Abu Dhabi recorded real estate transactions worth AED 96.2 billion ($26.19 billion). The Abu Dhabi Real Estate Center said in January that the number of transactions jumped by around 24% to 28,249, while the overall value of agreements for the year increased by more than 10% annually.During that time, there were 16,735 sales transactions totaling AED 58.5 billion and 11,514 mortgage transactions adding upto AED 37.7 billion.
Residential rental prices in Abu Dhabi also increased last year as apartment rents rose by 22% and villa rents showed an annual rise of 9% in the emirate.
Apartment rental prices increased by 31% on Saadiyat Island, 24% on Al Reem Island and 21% on Al Raha Beach.
Al Reef saw a 12% increase in villa rentals, while Al Raha and Khalifa City saw 10% and 8% increases respectively.
About 3,000 residential units were turned over in Abu Dhabi’s investment zones in 2024 which was 13% less than 2023 recordings and roughly 46% less than the original projection. According to the research, Yas Island had the highest percentage of handovers (39%) followed by Masdar City and Al Maryah Island.
With 60% of the supply concentrated in Yas Island, Al Reem Island, Saadiyat Island and Al Maryah Island.
8,500 units are anticipated to be supplied in 2025.
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