Bayut Unveils 2023 Abu Dhabi Property Market Report 

Property Trends in Abu Dhabi:

Based on platform search trends, property prices in Abu Dhabi have seen an upward trend, particularly in upscale neighborhoods with high-end amenities.

Buying Trends:

For affordable apartments, Al Reef and Al Ghadeer were the most searched areas. Luxury apartments in Al Reem Island, Yas Island, and Saadiyat Island gained significant interest in 2023. Sales prices for luxury properties in sought-after areas rose by up to 13%, with Saadiyat Island leading with an 8.73% increase for luxury apartments and a 12.9% hike for premium villas.

Sales price-per-square-foot for affordable apartments saw moderate declines of up to 2.05%, while affordable villas experienced a minor increase of up to 3.95%. Notable appreciations were observed in Al Samha, Khalifa City, and Al Ghadeer.

According to DARI, there were over 14,000 residential property transactions valued at over AED 52B in 2023.

Return on Investment (ROI) Insights:

Al Reef showcased an 8.04% rental yield for affordable apartments, and Al Reem Island maintained a 6.65% ROI for luxury flats. Hydra Village led with a 6.78% ROI for affordable houses, while Al Raha Gardens offered a 6.04% ROI for luxury villas.

Renting Trends:

Rental prices for luxury apartments in sought-after areas increased by up to 14%, while affordable apartment rentals remained competitive with a nearly 3% drop in some areas.

Rental prices for affordable villas experienced minor to moderate increases of up to 4.91%. High-end villas on Yas Island and Saadiyat Island saw significant hikes of 12.7% and 22.2%, respectively.

Popular choices for affordable accommodation included Khalifa City and Al Khalidiya for apartments, and Mohammed Bin Zayed City and Khalifa City for budget-friendly spacious villas. In the luxury segment, Al Reem Island and Al Raha Beach were favored for apartments, and Al Raha Gardens and Yas Island for premium villas.

In 2023, positive shifts in both sale and rental segments indicate sustained interest and investment in Abu Dhabi's real estate. The momentum is likely driven by increased demand, attractive investment opportunities, and a favorable economic environment.

CEO's Comment:

Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, noted the record-breaking year for the UAE real estate market in 2023, with Abu Dhabi contributing significantly. Factors include increased demand, favorable market conditions, and steady growth in the rental sector, encouraging more property-seekers to become homeowners.

Demand for properties in Abu Dhabi remains high, with over 14 million visits to Bayut in 2023, a trend expected to continue, especially considering growing international interest in the Abu Dhabi market.