Abu Dhabi real estate: Best returns on investment, most popular neighbourhoods, fastest-growing property prices in Q3 revealed

Bayut analysis identifies the best neighbourhoods for return on investment in Abu Dhabi

The Abu Dhabi real estate sector showed further signs of growth in many indicators and returns on investment (ROI) of up to 8.86 per cent between July and September, according to the Bayut Q3 market report.
The Bayut analysis uses search trends to identify the relationship between economic variables and demographic trends.
The report identified the most popular areas for searches on the platform as well as the best returns on investment for real estate in Abu Dhabi.

Abu Dhabi real estate investments

During Q3 2024, Al Reef, Al Ghadeer and Masdar City emerged as key locations among those looking at purchasing affordable apartments in Abu Dhabi. For those interested in buying luxury apartments, Al Reem Island, Al Raha Beach and Yas Island have remained popular options.

Villas for sale in Al Reef, Khalifa City and Al Shamkha have garnered the most investor interest in the affordable segment. The luxury villa market has continued to attract buyers, with Yas Island, Al Raha Gardens and Saadiyat Island taking the lead.

As per Bayut’s data, the average prices-per-square-foot for affordable apartments have mainly experienced minor upticks of more than 2 per cent.

Sustained demand for luxury apartments, particularly in prime locations, has been the key driver behind price hikes of up to 8 per cent. The highest price increase has been recorded for apartments in Saadiyat Island.

The sales market for affordable villas has witnessed a steady price increase, reaching up to 6 per cent. The average price per square foot for Khalifa City villas rose by up to 5.65 per cent, reflecting growing demand for affordable houses as more buyers entered this market segment seeking spacious, value-for-money properties.

Prices for luxury villas have continued to appreciate, with the average price per square foot climbing steadily up to 5 per cent in the third quarter of 2024. Enjoying proximity to attractions like SeaWorld Abu Dhabi, Yas Marina Circuit and Ferrari World, opulent villas in Yas Island saw the highest jump in average price per square foot, at 4.94 per cent.

In terms of returns on Investment (ROI) for real estate in Abu Dhabi, Al Reef and Al Ghadeer reported the highest yields for affordable apartments, offering returns of 8.86 per cent and 8.20 per cent, respectively.

Investors and HNWIs should note that luxury apartments have enjoyed up to 7.22 per cent and 6.99 per cent returns for premium properties in Yas Island and Al Reem Island.

In the affordable segment, villas in Hydra Village generated attractive yields of 8.06 per cent. On the other hand, affordable villas in Abu Dhabi Gate City offered 6.69 per cent returns.

Yas Island was the most desirable location for luxury villas, with an ROI of 6.50 per cent, closely followed by Al Raha Gardens, which offered a 6.42 per cent ROI.

Off-plan real estate in Abu Dhabi

The off-plan property market in Abu Dhabi continues to thrive, with several projects capturing the interest of both investors and homebuyers across affordable and luxury segments.

Royal Park in Masdar City stood out as one of the most searched for options for affordable apartment buyers, offering a blend of modern living at competitive prices.

City of Lights in Al Reem Island, on the other hand, has remained the top pick for luxury apartment buyers, combining state-of-the-art architecture, waterfront views and high-end amenities.

In the affordable villa market, Bloom Living has garnered high search volume, perhaps thanks to its family-friendly environment, ample green spaces and a range of villa sizes that cater to different buyer needs.

Saadiyat Lagoons in Saadiyat Island is the standout project for luxury villa buyers, known for its exclusive waterfront properties and proximity to cultural landmarks. This prestigious development continues to be a magnet for those seeking a luxurious and serene lifestyle.

As 2024 draws to its final quarter, Abu Dhabi’s residential property market remains strong, showing no signs of slowing down.

The combination of ongoing government support, continuous infrastructure development and a steady influx of foreign investment points to a bright outlook for both investors and homeowners in the years ahead.

The training programme is mandatory for real estate professionals operating in Abu Dhabi to obtain their licenses.

Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, said: “The Abu Dhabi real estate market is continuing to stay strong this year, thanks to increased transparency and solid investments from both local and international players.

“If we look at just the last quarter, we have had over 3.5m visits on our platform for listings in Abu Dhabi, showing just how strong the demand for properties in the capital is even during summer months.

“The government’s efforts to enhance data accessibility and push forward digital initiatives, like AI-powered services and the comprehensive DARI real estate platform, have definitely contributed to this.

“Looking to the future, we can anticipate even better outcomes. The Abu Dhabi Real Estate Centre (ADREC) is set to attract more foreign investments by streamlining regulations and maintaining a strong focus on transparency.