The non-oil industry in Abu Dhabi had a good growth rate in 2023 where it expanded by 9 percent hence the good performance in 2024. 1%.
Therefore, the volume of the building and real estate industries in the capital increased by over 11 percent. 6% YoY in the year 2023, which would reach approximately 12% of the GDP.
Most of this rise was attributed to the construction industry which had expanded by almost 14% and contributed 8%. 6% of the GDP.
The market for real estate in Abu Dhabi remained quite stable in 2023. According to the rent
rise, the emirate has also experienced sales activities, and the demand for both, residential and commercial properties to buy, remains high. In their opinion, the market of real estate will remain growing and setting records in 2024.
Abu Dhabi Real Estate Market Forecast 2024
The expansion of new projects in famous areas of Abu Dhabi, population increment, investment in sustainable technology, and the ascension of living standards will lead to a general 5-7% annual addition in the prices of residential properties for sale in Abu Dhabi.
This will create a new benchmark for other real estate transactions that are not under the plans. As is evidenced by the annual reports of the Property Finder portal. The off-plan house sales were 2700 in 2021, 5000 in 2022, and 10000 in 2023. It can be safely assumed that there will be a significant rise in the number of transactions in 2024 based on such a growth trend.
The emirate will be faced with an increase in rent ranging between 5 percent and 8 percent. This is because more and more international workers, business people, and expatriates are placing a demand for housing.
Some of the real estate agents think that Yas Island and Al Reem Island are going to remain their favorite destinations. Parks, sports places, shopping centers, schools, nurseries, clinics, health centers, and other infrastructural facilities are proposed to be developed more by the developers. Real estate prices in Yas Island will be raised by 3-5% while Al Reem Island will experience an increase of 10-15%.
The market for renting office spaces will come back. Since COVID-19, global companies are increasingly opening more offices in Abu Dhabi. There is evidence that office building occupancy will rise by 98 % by 2024.
Retailers will see the rental prices of the selling space to be higher even after experiencing a low figure during the outbreak. The growth rate for the year 2024 ranges from 2-4% So for 2024 the adjusted growth rate is expected to be 2% – 4%.
Overall Real Estate Performance in Abu Dhabi 2024
The real estate market of Abu Dhabi posted positive results in 2023 and it was even forecasted that the volume of the real estate market will increase up to 2024 through accordance with the growing interest of investors and the action of the government to make it more attractive.
Out of the AED 67 of property deals recorded for the first nine months of 2023 in Abu Dhabi, AED 58 was derived from residential sales. Shopper transactions went up to 8 billion meaning more than 56 percent of all transactions. October 2023 saw a 3 percent increase in the total foreign population in Sweden compared to earlier in the month, though the percentage fluctuates daily. The average increase in the prices of the residential sales by at least 9% than it was in the previous year.
Within 26 December, 14,211 units in the real estate sector with total sales of AED 50 billion were achieved.
The ability of under-construction project sales of Abu Dhabi has been shown in this section based on the scores.
In the case of people in Abu Dhabi, real estate projects that are still being realized are ongoing and are increasing the need for residences that are either proposed or are still being built like in Masdar City, Shamkha, Zayed City, Yas Island, Reem Island, and Saadiyat Island.
Potential high investment yield sectors in Abu Dhabi till the year 2023
With a 6. A high of 6% return on investment was recorded in Reem Island which made it the best in that aspect in the whole of Abu Dhabi. It provides a vast number of promising options of properties for rent and sale with prices as low as $285 per square meter. Price hikes of 1. 7% and 8. 7%, 234 units; and 4%, 120 units, respectively, according to findings from studies conducted on Yas Island and Saadiyat Island, the two islands that the rich prefer because of the scarcity of supply, against the market projection for 2022.
The most promising areas for living and investment
A growing percentage of affluent investors want to rent out or sell their real estate to preserve or grow their cash. In 2024, the following will be prominent investment areas:
Al Reef
The ROI in this area averaged around 8% in 2023. It has amusement centers and a well-developed communal infrastructure. A one-bedroom apartment in this area starts at AED 400K (about USD 109K), making housing here reasonably priced for both investment and lifestyle.
Yas Island
This is a sure testament to what is probably available in and on Yas Island; there are numerous leisure and entertainment activities. This area has far greater real estate expenses because of five-star resorts, attractions including amusement parks, and well-maintained beaches. AED 1. 5464 (USD 5169) is the starting point for a one-bedroom flat investment with an RU@ of 6 percent. Yas Island is of course chosen for investment and recreational usability.
Al-Maryah
The island continues expanding and is now experiencing rapid property development, including luxury properties; the district also contains many business complexes. It is perfect for business and work-related purposes as well as for leisure and pleasure hence, Al Maryah. According to the forecast, the rates of growth in the region will accelerate by 2024, when new tourists, residents, and investors arrive.
Saadiyat Island with its famous landmarks and Al Reem Island with its relatively suitable infrastructure environment will remain popular to use one of the most exclusive and lavish properties for rent in Abu Dhabi. Mortgage and rental rates are anticipated to increase slightly in 2024, Together with fresh new luxurious developments for both islands.
Conclusion:
Real estate continues to remain buoyant in 2024 for Abu Dhabi. The emirate will remain stable for further development, increasing the quality of life, attracting new investments, as well as expanding its economic base.
In general, more investment in constructing infrastructure all around Abu Dhabi will take place in 2024 and this will increase the local and foreign demands for real estate. It is also forecasted that an increase in the number of foreign companies intending to do business in Abu Dhabi will ultimately help to reach a positive trend in the rental market of commercial real estate. Although there will be an adaptation in the return of the investment in luxuries such as houses, the return from the real estate, especially the affordable ones will remain constant. As per the industry forecasts provided by various developers, the year 2024 shall see even more high-end structures and multifunctional premium complexes planned for construction owing to the demands of such properties in the buildings market.