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 percent annually in 2024, while rents rose by 20 percent, Cushman & Wakefield Core said in a report on Thursday.
Villa prices climbed by 15 percent during the year, with Khalifa City recording the strongest growth at 30 percent, followed by Al Reef and Yas Island at 13 percent each. Apartment prices, meanwhile, increased by 10 percent, with Saadiyat Island leading the growth with a 28 percent rise. Yas Island and Reem Island recorded gains of 14 percent and 12 percent, 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 percent on an annual basis, while the number of transactions increased by about 24 percent 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 percent, while villa rents rose by 9 percent on an annual basis in the emirate. Saadiyat Island recorded a 31 percent increase in apartment rents, followed by Reem Island at 24 per cent and Al Raha Beach at 21 percent.
Villa rents in Al Reef jumped by 12 per cent, while in Al Raha and Khalifa City they rose by 10 percent and 8 percent, respectively.
In 2024, about 3,000 residential units were handed over across investment zones in Abu Dhabi, nearly 46 percent lower than the initial forecast and 13 percent lower than 2023 figures. Yas Island accounted for the largest share of handovers at 39 percent, followed by Al Maryah Island and Masdar City, the report said.
About 8,500 units are expected to be delivered in 2025, with 60 percent of supply concentrated in Yas Island, Reem Island, Saadiyat Island and Al Maryah Island.
