The increased interest from buyers from abroad contributes to the growth of the Abu Dhabi real estate market.
Abu Dhabi's largest developer, Aldar Properties, reported a 20% increase in sales in 2024, with international investors driving the rise, according to the company's CEO.
The volume of housing sales to foreigners increased by almost 40%: from 16 billion dirhams of the UAE (4.35 billion US dollars) in 2023 to 22.2 billion dirhams of the UAE in 2024.The share of foreigners in total sales is 78%, the share of locals is 22%. Foreign buyers mainly come from the UK, Russia, China and India.Andrew Laver, partner at Cavendish Maxwell consulting company in Abu Dhabi, said: "The residential sector in Abu Dhabi is experiencing steady growth driven by increased demand from local and international investors, as well as strategic government initiatives such as incentives for obtaining residence permits."
High demand for residential and commercial real estate in the emirate is expected to continue to drive the sector's growth in 2025. About 11,000 new houses and 100,000 square meters of office space are planned to be commissioned this year.
Demand for finished real estate in Abu Dhabi has almost doubled in 2024, with prices for apartments and villas rising 11.5% and 12.5%, respectively, according to a report by Cavendish Maxwell. Rental prices also went up: the average increase was 13% for apartments and 8% for villas.
According to Cavendish Maxwell, lower interest rates, increased investor confidence and attractive financing options from banks have stimulated mortgage demand in 2024.
According to Savills, in the 4th quarter of 2024, Class A office buildings in the central business district of Abu Dhabi recorded an average rent increase of 8% year-on-year.
Stephen Forbes, head of Savills Middle East Abu Dhabi, said: "Demand from tenants in Abu Dhabi remains high, especially in key sectors such as financial services, consulting and technology."
Source: AGBI
