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The property specialist identifies key property trends in Abu Dhabi in 2023, with data on best return on investment for apartments and villas across the city
January 30, 2024 | Staff Reporter | UAE | Property Management
Abu Dhabi real estate investors saw returns of more than 8% on selected properties in the city last year, according to data from the Bayut Annual Sales Report for Abu Dhabi in 2023. Property specialists Bayut released its Abu Dhabi annual sales market report for 2023 and the report analysed sales data and identified sales trends in Abu Dhabi last year.
One of the key trends in the Abu Dhabi sales market report is the increasing demand for luxury properties, said the Bayut report. The emirate has seen a rise in the number of High-Net-Worth-Individuals (HNWI) seeking luxurious and exclusive homes. This demand has propelled high-end residential projects catering to discerning tastes.
According to the Bayut report, HNWI (high net worth individuals) favoured the following communities in 2023 –
Al Reem Island has a reputation for offering a great selection of high-end properties and continues to be the top choice for those looking to buy luxury apartments in Abu Dhabi. The average price-per-square-foot for Al Reem Island apartments for sale was AED1,048, representing a 0.73% increase from 2022. The Al Raha Beach, known for its trendy waterfront living, is the second most popular spot for luxury apartment purchases in Abu Dhabi.
Yas Island was another preferred choice for High-Net-Worth Individuals (HNWI) looking to purchase luxury apartments in Abu Dhabi in 2023. The price per square foot of upscale apartments for sale in Yas Island increased by 1.72% from 2022 to reach AED1,332 in 2023. The Bayut annual real estate market report for 2023 also highlighted that buyers were inclined towards the high-end flats for sale in Saadiyat Island. The area witnessed an 8.73% increase in average price-per-square-foot to stand at AED1,942 in 2023.
Impressive ROIs
The luxury apartment market in the city has witnessed impressive ROIs in certain areas. Among the best-performing areas for ROI were:
According to the Bayut report, the best neighbourhoods for investing in high-end villas in Abu Dhabi last year were:
Yas Island was the top choice for luxury villa purchases in Abu Dhabi. The average price-per-square-foot for villas for sale in Yas Island is AED1,149, a minor decrease of 0.2% from 2022.
Saadiyat Island was also a hit with High-Net-Worth Individuals (HNWI) for buying luxury villas in the city. The price-per-square-foot for houses for sale in Saadiyat Island increased by 12.9% to stand at AED 1,934 in 2023. This hike can be attributed to properties listed at higher prices to tackle increasing demand, particularly in Saadiyat Beach and HIDD Al Saadiyat.
Al Raha Gardens was a hit for investors looking to buy upscale villas in Abu Dhabi. Villas for sale in Al Raha Gardens experienced a 0.95% increase in price-per-square-foot to stand at AED 851 in 2023.
According to the Abu Dhabi annual sales market report, budget-conscious buyers were attracted to areas such as:
Bayut’s data shows that Al Reef remains the top choice for those seeking affordable apartments in the emirate. The average price-per-square-foot for flats for sale in Al Reef was AED644, which indicates a 2.05% decrease from 2022.
Al Ghadeer ranked second among the top areas in Abu Dhabi for buying inexpensive flats. Those interested in apartments for sale in Al Ghadeer will find that the average price-per-square-foot rose slightly to AED717, a 0.33% increase from the previous year.
The study also saw that investors searching for reasonably-priced flats in Abu Dhabi have shown a preference for Masdar City. In 2023, the average price-per-square-foot for apartments for sale in Masdar City decreased by 2.05%, reaching AED1,159.
