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The win-win combination of solid economic growth and strong government support is pushing the real estate market of Abu Dhabi to skyrocketing heights
March 13, 2024 | Deepa Natarajan Lobo | UAE | Developers
The residential developments of Dubai’s neighbouring city of Abu Dhabi have become much sought-after by investors across the globe. After a fantastic 2023, the Abu Dhabi real estate market is showing no signs of slowing down with property values continuing to show a steady growth well into the first quarter of 2024. As per a recent forecast by ValuStrat, the residential values of the UAE capital will witness an increase of 3 to 5% this year. While apartment prices are expected to stay stable, freehold villa communities will gain more popularity and witness modest increases, as per the report.
Moreover, the Abu Dhabi Projects and Infrastructure Centre (ADPIC) has recently announced the approval of 144 projects across the emirate by the Abu Dhabi Executive Council, with a total budget of approximately AED66 billion ($17.96 billion). With the property market of the city rapidly advancing, REM TIMES speaks to industry insiders on what are the key factors influencing the expanding real estate sector of Abu Dhabi.
According to Ben Crompton, Managing Partner of Crompton Partners, the growth in the Abu Dhabi residential real estate market is being driven by several factors, such as the increase in population, good job opportunities and governmental support. “The Abu Dhabi government is bringing businesses and in turn, people and investment to the emirate. The focus on Foreign Direct Investment too is playing an important role. Developers and government are actively seeking out investment into the Abu Dhabi real estate market through roadshows, prioritising foreign buyers generally opening up the sector to investment,” he observes.
The Abu Dhabi government is bringing businesses and in turn, people and investment to the emirate. The focus on Foreign Direct Investment too is playing an important role. Developers and government are actively seeking out investment into the Abu Dhabi real estate market through roadshows, prioritising foreign buyers generally opening up the sector to investment.
Ben Crompton, Managing Partner of Crompton Partners
The new entrants in the market along with the quality of the existing ones are driving the robust growth of the region too, he believes. “Launches such as Nobu, Ramhan and Lagoons are ultra-luxury and very high-end. They are tapping into an underserved part of the market and proving to be very popular. The new entrants in the market, such as Q Properties, which has been formed through the combination of three master developers; Modon, which is developing a huge island just off the coast of the city, and Nine Yards with its numerous offerings, prove that a diversity in the market is breeding invention,” he adds.
UAE’s economy, on the whole, is projected to grow by more than 4.5% in 2024, with Abu Dhabi constituting a major share of this growth. Swapnil Pillai, Associate Director – Research, Savills Middle East, believes that driven by positive economic momentum and more importantly, the recent change in the Golden Visa scheme, the real estate sector is expected to continue its growth trend. “Whilst capital values are likely to continue to increase as new projects with higher specifications are introduced. The elimination of the minimal down payment for Golden Visas has promoted long-term residency and real estate investment. Another trend we have noticed is sustainable development initiatives, tourism infrastructure improvements, and the creation of a tech ecosystem. These efforts highlight the region's economic diversification along with Abu Dhabi's infrastructure development, opening up opportunities for investors and businesses.”
Known for its iconic structures across the world such as the Sheikh Zayed Grand Mosque, Presidential Palace, Louvre, the upcoming Zayed National Museum and Guggenheim, Abu Dhabi has been an addition to every traveller’s list of places to visit. “Located in the heart of the cultural district of Saadiyat, these landmarks, along with the large conferences taking place in Abu Dhabi, are introducing people from across the world to the quality of life, safety, community wellness and great hospitality strongly ingrained in the emirati culture,” notes Felicia Agmyren, Managing Partner, Rex Real Estate. “Add to these factors like a strong economy with great GDP forecasts and a large number of residential options with various price points that satisfy the incoming demographic of buyers, and you can see why Abu Dhabi is a clear winner that is attracting more and more people to live here than ever before,” she concludes.
