Abu Dhabi's residential property market set for sustained growth
UAE - Demand for residential property is on the rise in Abu Dhabi, where 38,700 new units are set to come to market by 2028, according to leading real estate advisory and property consultant, Cavendish Maxwell.
Following a strong performance last year witor in the UAE capital is poised for further growth this year and beyond, fuelled by increased demand and strategic Government initiatives, said Cavendish Maxwell in its latest Abu Dhabi Residentiah 9,700 sales transactions worth a total AED26 billion ($7.1 billion), the residential real estate sectl Market Performance Report.
Some 10,800 new units are due to be delivered this year, with another 6,000 in 2026. By the end of 2028, Abu Dhabi's total residential inventory will be around 313,700, it stated.
Cavendish Maxwell said 5,200 new homes were delivered in 2024 - mostly at Al Raha Berach, Yas Island, Masdar City and Saadiyat Island – with 275,000 units in total at year end.
Andrew Laver, the Associate Partner in Abu Dhabi, said the residential sector in the capital was experiencing steady growth, driven by increased demand from local and international investors as well as strategic government initiatives such as residency incentives.
Sustainable development and innovative housing solutions will be key in shaping the future of capital's residential property market, with rising demand and price appreciation further boosted by infrastructure expansion and enhanced community offerings, he stated.
Sales and rental prices up
Cavendish Maxwell said the average sales prices for apartments rose by nearly 11.5% in 2024, with villa prices up by just over 12.5%. Yas Island commanded the biggest rises at more than 20% for apartments and 13% for villas.
In the rentals market, rates were on an average of nearly 13% for apartments and 8% for villas, with Yas Island seeing the highest rises, at 16% and 10% respectively. Cavendish Maxwell predicts further gradual increases this year.
The real estate expert said the demand for ready properties surged by almost 50% year-on-year in 2024, while off-plan transactions saw a decline of 13%, largely due to a reduction in new project launches.
Of the 9,700 sales transactions last year, 75% were for apartments – up 63% on the previous year.
Apartment sales transactions reached 7,300 with a total value of AED12.6 billion. 2,400 villas and townhouse, with a combined value of AED13.4 billion, were purchased in 2024 – a drop of 44% in volume and value, driven by limited new projects launches.
However, demand for ready villas and townhouses was up 47% and 26% respectively, reflecting growing confidence among investors and end-users in the completed property market.
Abu Dhabi saw a 34% increase in mortgage transactions in 2024, with nearly 5,000 mortgages, worth a total AED7.1 billion secured.
Loans for apartments dominated the mortgage market, up 66% in volume and 55% in value on the previous year. Falling interest rates, increasing investor confidence and attractive financing options from banks fuelled mortgage demand last year, it stated.
Almost 40 residential projects were launched in Abu Dhabi last year, bringing 11,000 new units to the market.
Al Reem island saw the highest number of new units (2,000), followed by Saadiyat Island (1,800) and Al Bahyah (1,700).
Aldar Properties dominated the market, launching around 4,000 units across 12 projects, reinforcing its position as a leading player in the capital's real estate sector.
The performance of this year's off plan market will hinge on the number of new launches: a decrease in new projects could lead to a decline in volume and value of off plan transactions.- TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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