Abu Dhabi Property Market Soars with Rising FDI: Bayut

Bayut's latest report highlights growth in Abu Dhabi's property market during the first half (H1) of 2024, driven by increased foreign direct investment (FDI). The analysis indicates noticeable price increases and rising demand across affordable and luxury segments.^[1]  

Popular locations for affordable apartments include Al Reef and Al Ghadeer, while Al Reem Island and Al Raha Beach are preferred for luxury apartments. For budget-friendly villas, Al Reef and Khalifa City are prominent, whereas Yas Island and Saadiyat Island continue to attract those seeking luxury villas.

Luxury villa prices in popular residential islands, such as Yas Island, increased by up to 10.3%. Prices for luxury apartments on Saadiyat Island rose by 6%, and those in Yas Island and Al Reem Island went up by approximately 2.75% and 2.77%, respectively. Affordable apartments in Al Ghadeer saw an increase of 9.5%.

In terms of return on investment (ROI), Al Ghadeer offers a projected ROI of 8.52% for affordable apartments, while Al Reem Island provides a rental yield of 6.94%. Hydra Village stands out with an 8.08% ROI for affordable villas, and Yas Island luxury villas offer a 6.89% ROI.

For off-plan developments, Royal Park and Bloom Living are popular choices for budget-friendly investments. In contrast, luxury buyers favor off-plan projects such as Yas Bay, City of Lights, and Saadiyat Cultural District. Fay Al Reeman 2 is favored for small-ticket investments, with Yas Acres and Murjan Al Saadiyat being top choices for luxury villas.

In the rental market, Khalifa City and Al Khalidiyah are the areas of affordable apartment rentals, while MBZ City and Khalifa City are preferred for renting affordable villas. For luxury rentals, Al Reem Island and Al Raha Beach are prominent for apartments, and Yas Island and Al Raha Gardens are sought after for high-end villas.

Rental prices have grown, with luxury apartment rents increasing up to 21% in Saadiyat Island and Al Raha Beach. Affordable apartment rentals rose by over 7% in Al Muroor, while affordable villas saw a general increase of nearly 7%. Upscale villas in Al Bateen experienced rent increases of up to 12%.

Dubai's property market saw a 45% year-on-year (YoY) leap in transactions in the second quarter (Q2) of 2024, reaching over 43,000 transactions, according to Property Finder’s Market Digest.

This performance surpassed the transaction volumes of the first quarter (Q1) of 2024, which had a 17% YoY increase in volume and a 2% surge in value.