A significant 83% increase in home sales in Abu Dhabi
< 1 min
The recent British real estate consultancy Savills’ report highlighted a significant 83% increase in home sales in Abu Dhabi, fueled by the arrival of digital nomads and expatriates.
The report mentioned that the capital of the UAE witnessed, in 2023, 11,200 property transactions, which represents a substantial rise from the previous year. This increase in sales of both villas and apartments has been attributed to several government initiatives, a flourishing economy, and the introduction of new residential projects.
Savills notes that Abu Dhabi’s appeal to expats and digital travellers has played a crucial role in this growth, positioning the emirate as the fourth most attractive location for executive travellers, according to the Savills Executive Nomad Index, trailing only behind Dubai, Malaga, and Miami.
The emirate has become a favorite among executive nomads from Northern Europe, thanks to its remote working visa and golden visas aimed at drawing property investors and skilled professionals in creative sectors, financial services, and startups.
The demand surge has prompted the launch of over 8,000 new housing units in the past year, observes Stephen Forbes, Head of Savills Abu Dhabi. He also mentions improvements in market transparency, which have made Abu Dhabi more attractive to a wider array of investors and end-users, including foreign nationals and the Emirati population.
In terms of property types, luxury villas and townhouses were in high demand in 2023, with 4,800 units sold, making up 43% of the year’s total sales. A significant majority of these, 84%, were off-plan purchases, with waterfront properties on Saadiyat Island, Yas Island, and Al Reem Island being particularly sought after.
Apartments, however, constituted the majority of transactions, representing 57% of all sales, with off-plan purchases accounting for 69% of apartment sales.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
< 1 min
Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
