Astico released its real estate report for the last quarter, 2024, to highlight the sustainable growth of the market across the UAE, thanks to its solid economic pillars, proactive government initiatives and successful investor confidence. The report also deals with influential trends in Abu Dhabi, Dubai, the Northern Emirates and Al Ain, providing important insights into market activity, how to balance supply and demand, as well as changes in price movement.
Abu Dhabi Administrative and Residential
The city of Abu Dhabi witnessed the delivery of about 5,600 residential units, during 2024, coinciding with the completion of a number of major projects in areas such as Yas Island, Saadiyat Island, Jubail Island and Al Raha Beach. These prominent projects included the launch of a number of luxury residential units, which carry prestigious brands, including “W Residences” on Al Maryah Island, “Eli Saab Waterfront” on Al Reem Island, and “Mandarin Oriental Residence” on Saadiat Island, as well as the launch of the Yas Canal project by the Abu Dhabi Housing Authority, which includes 1,146 housing units dedicated to Emirati citizens.
Residential Rental Market
The residential rental market witnessed sustainable growth, as the rental rates of luxury and premium apartments rose, with an annual rate of between 6% and 10%, with a significant concentration in areas such as Saadiyat Island, Yas Island and Al Raha Beach.
The villa market continued to retain a strong performance; as luxury villas on Saadiyat Island recorded significant increases in rents, amounting to 15%. As for the administrative units sector, it witnessed a high level of demand, especially for distinguished first-class office spaces, where rents rose at annual rates, ranging between 10% and 12%, as a result of the lack of supply, in light of the remarkable growth in the volume of business.
Sales Sector Activity
The sales sector also witnessed remarkable activity, with the total number of transactions about 10,200 transactions, and the properties under construction took the largest share of the market, accounting for 56% of total sales. As for prices, apartment prices have increased at an annual rate of 12%, with luxury projects growing up to 16%. In contrast, villa prices rose by an average of 5%, while luxury villa communities achieved annual gains estimated at 12%.