Abu Dhabi’s residential sale prices and rents surge in 2024 amid high demand

Home sales rose by 11 per cent, while rents increased by 20 per cent, report says

Apartment prices in Abu Dhabi rose by 10 per cent last year, according to a report by Cushman & Wakefield Core. Victor Besa / The National

Abu Dhabi’s residential sale prices and rents rose last year amid higher demand and a supply shortage in the emirate, according to a report.

Home sale prices increased by 11 per cent annually in 2024, while rents rose by 20 per cent, Cushman & Wakefield Core said in a report on Thursday.

Villa prices climbed by 15 per cent during the year, with Khalifa City recording the strongest growth at 30 per cent, followed by Al Reef and Yas Island at 13 per cent each. Apartment prices, meanwhile, increased by 10 per cent, with Saadiyat Island leading the growth with a 28 per cent rise. Yas Island and Reem Island recorded gains of 14 per cent and 12 per cent, respectively, during the period.

“Supply struggled to keep up with demand in 2024, driving sharp price increases,” said Prathyusha Gurrapu, head of research and consultancy at Cushman & Wakefield Core. “While new supply in 2025 is expected to help, demand remains high, putting continued pressure on rents and sales prices.”

The UAE’s property market continues to perform strongly on government initiatives such as residency permits for retired people and remote workers, as well as the expansion of the 10-year golden visa programme and overall growth in the UAE’s economy amid diversification efforts.

Abu Dhabi recorded real estate deals valued at Dh96.2 billion ($26.19 billion) in 2024. The total value of deals for the year rose by more than 10 per cent on an annual basis, while the number of transactions increased by about 24 per cent to 28,249, the Abu Dhabi Real Estate Centre said in January.

Sales transactions for the period were 16,735, with a total value of Dh58.5 billion, and mortgage transactions reached 11,514, with a total value of Dh37.7 billion.

Abu Dhabi’s residential rents also continued to rise last year, with apartment rents surging 22 per cent, while villa rents rose by 9 per cent on an annual basis in the emirate. Saadiyat Island recorded a 31 per cent increase in apartment rents, followed by Reem Island at 24 per cent and Al Raha Beach at 21 per cent.

Villa rents in Al Reef jumped by 12 per cent, while in Al Raha and Khalifa City they rose by 10 per cent and 8 per cent, respectively.

In 2024, about 3,000 residential units were handed over across investment zones in Abu Dhabi, nearly 46 per cent lower than the initial forecast and 13 per cent lower than 2023 figures. Yas Island accounted for the largest share of handovers at 39 per cent, followed by Al Maryah Island and Masdar City, the report said.

About 8,500 units are expected to be delivered in 2025, with 60 per cent of supply concentrated in Yas Island, Reem Island, Saadiyat Island and Al Maryah Island.

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Chris Whiteoak / The National