- Abu Dhabi’s residential market has experienced another year of substantial growth, particularly in its luxury real estate sector.
- Villas are the most popular purchase in Abu Dhabi, representing 76% of all sales transactions.
- Approximately 33,700 homes will be built by 2027 to cater to high-end customers demanding quality amenities and sea views.
Knight Frank’s recent study, ‘Abu Dhabi Residential Market Review, Summer 2023’, shows that the city’s real estate and luxury residential sector has experienced substantial growth so far in 2023.
According to the analysis, approximately 6,000 villas and 6,000 apartments were unveiled in 15 residential projects launching in Q2, many of which catered to high-end customers demanding quality amenities and sea views.
In Q2 2023, Al Reem Island saw the biggest price growth with 816 sales transactions totalling AED 2.1bn, of which 76% were villas and 24% were apartments.
Saadiyat Island reported a total value of transactions of AED 1.2bn, in which apartments were the most popular purchase at 68% of all sales. Yas Island came in third with AED 919m, of which villas accounted for 65% of the sales.
The total value of transactions for Abu Dhabi rose substantially to AED 6.1bn, a 103% increase compared to the previous year.
Although Dubai is seen as the preferred location in the UAE for wealth management and luxury, many high net-worth individuals (HNWIs) consider Abu Dhabi to be a hub for high-end luxury living.
UK HNWIs looking to move to the UAE and purchase a luxury property will need a secure way to make international payments between countries.
Knight Frank’s Faisal Durrani, Head of Research for the Middle East and North Africa, noted that the stability of Abu Dhabi’s market compared to 10 years ago is a significant driver of buyer behaviour.
According to the report, Saadiyat Island’s villas are the most sought-after in the city, with prices being more than 20 times the average annual household income. The data also suggests that the median price for Abu Dhabi’s real estate property so far in 2023 is AED 979 per square foot.
The UAE real estate market has experienced stability since the COVID-19 pandemic, and Abu Dhabi’s freehold areas indicate that the limited number of new homes being constructed has kept the city’s market solid.
To cater to international demand, 33,700 homes are expected to be delivered by 2027, with the majority being villas. This surpasses previous completion levels, meaning that a gradual rise in housing supply is likely to sustain the current status of price stability, according to Knight Frank.
Wealthy internationals looking to invest in overseas luxury properties should utilise safe online money transfer services to complete their transactions.
HNWIs wishing to purchase luxury villas in Abu Dhabi can compare foreign exchange rates using our online money transfer comparison tool.
