Dubai’s underlying fundamentals are robust, driven by high equity in the real estate market, continued economic growth, infrastructure development and a growing population. The report also highlights that Abu Dhabi’s real estate market is set for continued growth in 2024, supported by government initiatives and robust economic fundamentals. Meanwhile, the Northern Emirates are poised for sustained development, underpinned by strategic planning, attractive affordability, and increased investments.
Abu Dhabi Residential and Office Market
According to the report, the Abu Dhabi market saw the delivery of around 2,400 residential units, particularly in Noya on Yas Island, Jubail Island, Masdar City, and Al Raha Beach. Several residential and mixed-use projects are currently in the planning stages, with public launches expected throughout 2024, further broadening Abu Dhabi’s real estate landscape.
In the rental sector, the market continued to record strong activity, particularly in upscale apartment and villa locations. Average apartment rents saw modest quarterly and annual increases of 1% and 2%, respectively. Villa rents maintained a steady performance, reflecting a 5% increase over the past 12 months. Landlords in Abu Dhabi’s prime residential areas, particularly in waterfront communities such as Al Raha Beach, Saadiyat, Yas, and Al Reem Islands, benefited from strong occupancy rates and high demand, with some properties even having waiting lists. Comparable mid-end properties in prime investment areas experienced annual growth of over 5%. Properties at the lower end of the market exhibited stability, primarily due to landlords offering attractive lease terms to entice tenants.
The market also saw a steady influx of private and corporate investments, fuelling demand for high-quality office spaces, and leading to significant rental growth. Grade A offices in prime locations experienced a substantial (circa 10%) increase compared to the previous year, with robust quarterly growth ranging between 3% and 8%, especially for new contracts.
