High-net-worth individuals around the world are set to spend $408.3 million (AED 1.5 billion) on residential properties in Abu Dhabi and $388 million (AED 1.4 billion) in Ras Al Khaimah, according to global real estate consultancy Knight Frank.
Knight Frank surveyed 317 high net worth individuals (217 from around the world and 100 high net worth expatriates in the GCC) to understand their attitudes, desires and aspirations regarding investing in real estate in Abu Dhabi and Ras Al Khaimah. Collectively, survey respondents have an estimated net worth of $5.4 billion and own 1,149 homes around the world.
Knight Frank highlighted the success of the “Visit Abu Dhabi” campaign, as 50% of wealthy residents in the Gulf Cooperation Council countries, and 67% of global wealthy people with net worths of more than $20 million, reported that they had benefited positively from this campaign. This influence is attributed to the global advertising efforts of the Department of Culture and Tourism in Abu Dhabi, which has prompted many visitors to visit the city.
Shehzad Jamal, Partner – Strategy and Consulting Department at Knight Frank, Middle East and Africa Region, explained: “Residential values in Abu Dhabi have remained relatively stable over the past four years, which has played an important role in encouraging local buyers to move from renting to ownership. With homes in Abu Dhabi trading at around Dh1,000 per square foot, they remain around a third cheaper than Dubai, increasing the appeal of home ownership in the city among local buyers. International buyers have also become increasingly active, which has contributed to the high transaction volumes that are now being recorded in the emirate.”
During the year 2023, Abu Dhabi witnessed a record number, as the number of real estate deals reached 15,653 deals (an increase of 73.7% over the year 2022), with a total value exceeding 87.1 billion UAE dirhams in all sectors, compared to the value of deals that reached 61 billion UAE dirhams in 2022. It is worth noting that the number of non-resident investors who visited the capital reached 1,098 investors in 2023, representing an increase of 175% over 2022.
The top locations chosen for high-net-worth expatriates in the GCC in Abu Dhabi include Saadiyat Island (32%) and Al Maryah Island (24%), while for the global wealthy, Saadiyat Island (33%) emerged as the top choice.