Abu Dhabi’s real estate market experienced a transformative 2024, with soaring demand for luxury properties and growing interest in affordable housing areas, according to the newly released 2024 Abu Dhabi Secondary Market Transactions Report by Crompton Partners Real Estate Agency.
Speaking to Khaleej Times, Ben Crompton, Managing Partner at Crompton Partners, highlighted the resilience and adaptability of the market, which has witnessed record-breaking growth in high-end areas like Saadiyat Island and a notable shift toward affordability in areas such as Reem Island and Al Reef.
Rising Middle-Class Interest
While luxury properties continue to dominate, a significant trend this year has been the increased activity in affordable housing markets. “Lower-middle-class buyers with smaller budgets are now entering the market, opting to purchase rather than rent due to consistent growth and rising rental prices,” Crompton noted.
Reem Island, once considered a haven for stable rental prices, saw a 6.3% decline in sales prices during the first half of 2024 but rebounded in the latter half with increases in both rent and sales prices. Similarly, Al Reef experienced rising demand, with projections for price growth between 5-10% in the coming year.
Unprecedented Demand for Luxury
Demand for high-end properties, including villas and penthouses, has surged to historic levels. Transactions for secondary market villas in Hidd Al Saadiyat and off-plan units at Nobu Residences reached AED 130 million. The post-pandemic recovery has been a turning point for the luxury segment, with high-net-worth individuals drawn to Abu Dhabi’s stability and long-term investment value.
High-end projects such as Saadiyat Grove and Saadiyat Lagoons have further bolstered investor confidence, delivering returns exceeding 100% in some cases.
Saadiyat Island Leads the Market
Saadiyat Island remains Abu Dhabi’s premier real estate destination. Mamsha Al Saadiyat recorded a 58.8% increase in average sales price per square meter, the highest among all areas. Proximity to Abu Dhabi Global Market (ADGM) and world-class amenities have cemented Saadiyat’s appeal among financial professionals and affluent buyers.
Yas Island also emerged as a highlight, with the Noya community achieving the highest annual turnover rate at 16.7%. Meanwhile, Al Reem Island saw the highest transaction volume, with 1,352 units sold for AED 1.54 billion. Saadiyat Island, despite having the fewest transactions, led in transaction value at AED 1.67 billion, reflecting the premium nature of its properties.
Shifting Investment Trends
Off-plan properties accounted for nearly half of all transactions, driven by their lower upfront costs and high appreciation potential. However, a slight decrease in off-plan launches in 2024 has shifted attention to the secondary market, which continues to offer stable returns.
Crompton emphasized Abu Dhabi’s controlled housing supply growth—limited to 2-3% annually—as a key factor in its investment appeal compared to Dubai’s higher supply increases.
Looking ahead, Crompton expects the secondary market to grow in popularity due to its stability, while off-plan flipping remains a trend as developers launch attractive projects.
