Abu Dhabi’s residential and commercial markets showed “robust growth and stability” in 2Q 2024, according to a report by ValuStrat. Growth came despite declines in off-plan sales and residential ticket sizes in the emirate.

Prices continued to rise in 2Q: ValuStrat’s price index in Abu Dhabi rose 4.4% y-o-y, and 1.3% quarterly in 2Q 2024. Prices for villas in Abu Dhabi rose by 7.3% y-o-y during the quarter, while prices in the apartment segment “stabilized,” with marginal capital gains of 1.4% y-o-y in 2Q 2024.

But average sales value declined for both off-plan and ready units: The average ticket size for off-plan units decreased 18.4% y-o-y during 2Q to AED 2 mn, while off-plan transaction volume decreased by 41% y-o-y, driven by fewer project launches this year. The average ticket size for ready homes also fell by 2.7% y-o-y to AED 2.3 mn, despite a 44.1% y-o-y increase in transaction volume.

On the rentals side: Rates in Abu Dhabi’s rental market grew by 4.4% y-o-y in 2Q 2024, with average residential occupancy rates jumping to 91.6%. Villa rental rates grew 5.7% y-o-y. Meanwhile, apartment rental rates increased 3.2% y-o-y.

CBRE and ValuStrat differ on where price and rental increases lie: CBRE said apartment prices rose in the emirate by 6.2% y-o-y, while villa prices grew 3.9% y-o-y. Rentals for apartments were estimated to have risen 6.6% y-o-y, while villa prices grew at a more marginal 2.5% y-o-y.

REMEMBER- Apartments and villa prices and rentals increased in the emirate in 1H 2024, with luxury apartments seeing the biggest rental hike at 21% y-o-y, while luxury villas saw the biggest sales price growth, Bayut estimated.

THE OFFICE MARKET-

Asking rents in primary commercial districts grew by 13.7% y-o-y, and 9.1% q-o-q, the report adds. Average occupancy in central business districts stood at 88.7% during the quarter.

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