Yas Island and Al Reem Island have emerged as real estate hotspots, and the third quarter saw a 20% increase in the total sales value of off-plan projects in Abu Dhabi due to strong demand and alluring returns.
The sustained strong demand and impressive returns of the emirate’s thriving real estate sector, particularly the luxury segment that saw a notable spike in prices and rents, are reflected in the sharp increase in Q3 sales value to Dh5.4 billion from Dh4.5 billion in Q2. According to data provided by real estate consultants, the affordable segment continued the trend in the third quarter, with sales and rental prices rising in specific locations.
Areas like Yas Island and Al Reem Island have become hotspots, exhibiting strong demand and impressive returns, outperforming previous quarters as the real estate market in the UAE capital city flourished in Q3, according to Haider Ali Khan, CEO of Bayut & dubizzle and CEO of dubizzle Group Mena. “This growth demonstrates confidence in the market, which will drive its continued upward momentum. The capital city’s economic stability and premier urban experience, along with landmark projects like the upcoming Jubail Islands, continue to attract,” said Khan.
Real estate experts said the overall trends reflect the confidence of stakeholders in the market. “Investment-friendly policies, transparency in transactions, digitalization of processes, and investment security have remained significant factors cementing this confidence.”
Al Reem Island was a favorite for both purchasing and renting luxury apartments in the third quarter, while Yas Island continued to be the top option for buyers and renters looking for luxury villas. During the quarter, the average sales price of villas on Yas Island was Dh 4.25 million, while the average rent was Dh 226,000. Luxury apartment prices and rentals in Al Reem Island averaged Dh1.39 million and Dh99,000, respectively.
According to Bayut & Dubizzle data, Al Reem Island led the luxury apartment market with an estimated return on investment of 6.85%, while Al Jubail Island offered the highest investment return of 6.82% for luxury villas.
With an average sale price of Dh2.16 million, Al Reef has been the most affordable neighborhood for villas. Mohammed Bin Zayed City continues to be a popular destination for rental properties, with villas available for an average rent of Dh144,000. While Al Ghadeer has led the affordable villa segment with a return on investment (ROI) of 6.29%, Al Reef has also recorded the highest ROI of 8.90% in the affordable apartment market.
With an average sales price of Dh857,000, Al Reef continues to be the most sought-after neighborhood for the most reasonably priced apartments. Khalifa City is at the top of the list for reasonably priced rental apartments, with an annual rent of Dh44,000.
With an average sales price of Dh883,000, the Royal Park in Masdar City was the most popular affordable off-plan apartment project, according to market research data. With average prices of Dh4.05 million, Al Reeman 2 in Al Shamkha continued to be the most sought-after project for reasonably priced villas. With an average price of Dh1.41 million, the City of Lights on Al Reem Island has topped the list of luxury off-plan developments. However, with an average price of Dh3.37 million, Noya Viva on Yas Island has emerged as the market leader for luxury villas.