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Abu Dhabi’s real estate market “maintained its positive momentum” in 2024 despite a 40.3% dip in off-plan sales, according to a ValuStrat report (pdf). Growth was supported by rising transaction volumes in the ready segment, increasing rents, and strong commercial occupancy.
Prices rose across the board, led by villas: Villa prices saw the strongest gains, rising 8.9% y-o-y and 2.3% q-o-q in 4Q 2024, while apartment prices increased 3.5% y-o-y and 1.5% q-o-q.
Off-plan sales took a hit: Off-plan sales dropped 60.8% y-o-y in 4Q 2024 — despite growing 17.6% q-o-q — “likely due to fewer project launches this year,” the report said. On the flip side, the average ticket size for off-plan properties surged 34.8% y-o-y to AED 3.6 mn, the report said. Meanwhile, ready home sales jumped 89.2% y-o-y, with 1.4k recorded in 4Q 2024. However, the average ticket size for ready properties declined 7.2% y-o-y and 8.8% q-o-q to AED 2 mn.
Abu Dhabi’s rentals continued their upward trajectory, with villa rents growing 6.6% and apartment rents rising 8.2% in 4Q. The residential occupancy rate stood at 86% for the year.
On the commercial side: Commercial real estate in the emirate also saw strong rental growth, with asking rent prices in primary business districts rising 25.9% y-o-y and 3.4% q-o-q in 4Q. Demand for quality office space pushed average occupancy rates to above 90%.
Hospitality and retail were also bright spots: The hospitality sector maintained a 79% occupancy rate in 2024, driving revenue per available room to rise 19% y-o-y. The retail sector also remained stable, with major shopping malls sustaining an 89% occupancy rate.
Looking ahead, ValuStrat expects Abu Dhabi’s residential market to maintain moderate growth in 2025, with stabilization in some communities. Apartment prices are projected to increase by 6%, while villas could see 4% price growth. Rental rates are also expected to rise further, recording “slight increments in both villa and apartment sub-markets during 2025.”
ICYMI- Dubai’s real estate market also continued to see priceappreciation in 4Q 2024. Prices for villas and townhouses were up 31.6% y-o-y, compared to a growth of 23.6% for apartment prices. The prime segment also saw an annual price increase of 29.9% y-o-y. On the rental side, residential rents increased 9.8% y-o-y while office rents surged 20.8%.
