Abu Dhabi's residential sector witnessed an exceptional surge in 2023, with 11,200 units sold, marking an 83% year-on-year increase, driven by government initiatives, economic growth, and new projects. Expatriates and digital nomads have contributed to the city's appeal, as reflected in its inclusion in the Savills Executive Nomad Index. New project launches soared, reaching over 8,000 units, while improved market transparency attracted diverse investors. High-end villas and townhouses became sought-after, constituting 43% of sales, with off-plan transactions dominating. Saadiyat, Yas, and Al Reem Islands were favored locations. Capital values for villas rose by 6%, reaching 11,800 AED/sq m, while apartments accounted for 57% of sales, with an average capital value of 14,800 AED/sq m. With stable rental values and promising growth, Abu Dhabi's residential sector promises continued resilience and development.
In Abu Dhabi, the residential sector experienced a remarkable year, with 11,200 units being sold across the capital, marking an 83% increase year-on-year. The surge in demand for residences can be attributed to various positive initiatives and announcements by the government, alongside a thriving economy and the introduction of new projects, as highlighted by Savills' latest research on the emirate's residential sector.
Abu Dhabi has also seen a rise in the number of expats and digital nomads, contributing to its growing appeal as a residential destination. This was evidenced by the city's inclusion in the Savills Executive Nomad Index, where it claimed four places for the first time.
Growing demand has spurred a significant increase in new project launches, with over 8,000 units introduced to the market. Additionally, market transparency has improved, attracting a broader range of investors and end-users beyond the traditional segments. In 2023, the market saw increased investments from foreign nationals and sustained demand from the Emirati population.
The demand for high-end villas and townhouses witnessed a steady rise, emerging as one of the most sought-after segments in 2023. Approximately 4,800 villa and townhouse units were sold during the year, constituting 43% of total sales, with off-plan transactions representing around 84% of these transactions.
Preferred locations for villa projects included Saadiyat Island, Yas Island, and Al Reem Island, reflecting the preference for waterfront properties among investors and end-users. Notable among the new projects is the announcement by the Abu Dhabi Housing Authority (ADHA) regarding the opening of 1,700 units in Balghaiylam, a new residential development situated northeast of Yas Island.
The average capital value for villas in the city rose by 6% year-on-year, reaching 11,800 AED/sq m. At the same time, prime locations such as Saadiyat Island and Yas Island recorded capital values as high as 16,000 AED/sq m.
Apartments accounted for a larger share of the sales, comprising 57% of total transactions, with off-plan apartments representing 69% of the demand. Nearly 3,400 units were launched during the year, with over half of them located across the Yas and Saadiyat Islands, reflecting the growing popularity of these areas among residents.
Saadiyat Island witnessed the launch of 700 units by Aldar Properties, alongside projects like Nobu Residence, Manarat Living, and The Source. Similarly, Al Reem Island saw the introduction of Tiger Properties' Renad Tower project, adding 256 units to its inventory.
In 2023, notable project launches included Aldar Properties at Al Shamkha, Bloom Properties' Casares at Bloom Living, Marsa Al Jubail, Jubail Terraces at Jubail Island, and Reportage Real Estate's Royal Park at Masdar City. The capital value of apartments experienced an average increase of 6% year-on-year, with the average capital value in the city standing at 14,800 AED/sqm. Additionally, some areas saw growth rates of up to 18% year-on-year, while apartment rental values remained stable, with minimal growth year-on-year.
In conclusion, the residential sector in Abu Dhabi continues to demonstrate resilience and attractiveness, with robust demand and significant investment opportunities. As the market evolves and new projects are introduced, the city remains poised for continued growth and development in the years to come.
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