Property prices in Abu Dhabi continued to rise in 3Q 2024 despite a dip in off-plan sales, with ValuStrat’s price index rising 5.3% y-o-y and 1.7% q-o-q in the emirate during the quarter, according to a ValuStrat Real Estate Review (pdf).

On the rentals side, rates in Abu Dhabi’s rental market grew 5.8% y-o-y in 3Q 2024, “indicating sustained demand and favorable market conditions.”

The emirate saw a 51.1% increase in transactions for ready properties in the emirate, ValuStrat estimates, but off-plan sales — which represented 41.2% of overall sales — fell 58.6% y-o-y and 36.7% q-o-q owing to fewer project launches. Estimates from CBRE and Property Finder also indicated a slump of at least 40% y-o-y in total sales during the quarter.

In the office market: Median sales prices in the commercial sector rose 15.3% y-o-y during 3Q, the report adds. Asking rents in primary commercial districts grew by 25.6% y-o-y and 8.3% q-o-q, with average occupancy in central business districts reaching 90.2% during the quarter. Industrial rental rates remained stable at the lower end and rose by over 4% at the higher end.

How hospitality fared: Revenue per available room rose by 19.7% y-o-y, driven by a 9.5% y-o-y increase in the average room rate. Abu Dhabi’s hospitality sector achieved a 79.9% occupancy rate across 34k hotel keys during the quarter.

On the industrial side: Industrial prices at the higher end of the spectrum saw a 2.7% uptick, including in Mussafah and ICAD. Prices at the lower end remained stable.

DUBAI-

ValuStrat’s price index saw a 28.9% y-o-y rise in residential values in Dubai in 3Q, though the average size of sold homes shrunk to its lowest level and average sales prices per square foot softened for the first time so far this year, according to a separate ValuStrat Real Estate Review (pdf).

Prices for ready villas and townhouses rose by 33.1% y-o-y during the quarter, while prices in the apartment segment increased by 24.8% y-o-y. Nearly all villas (98%) have doubled in price since 2020, according to the report.

On the rentals side: Apartment rental rates increased by 15.4% y-o-y. Meanwhile, villa rental rates grew 4.9% y-o-y.

Mid-market and affordable properties gained traction in Dubai in 3Q 2024, the report said. Homes priced under AED 1 mn accounted for 40% of all ready home sales in the emirate during the quarter.

Demand for office space continued in 3Q, pushing capital values up 25.8% y-o-y and 2.6% q-o-q, while rents jumped 20.8% y-o-y. Warehouse demand similarly gained momentum, driving a 14.6% y-o-y and 5.2% q-o-q increase in capital values.

In the hospitality arena: Hotel occupancy reached 76.2%, rising by 0.7% y-o-y during the quarter, with the revenue per available room up 4.3% y-o-y and average daily rates up 3.2% y-o-y.

Tags: