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For the real estate market of the UAE, 2023 became another success in the long series of records set since the beginning of the COVID-19 pandemic. Year after year, the national real estate market, primarily housing, has been gaining leading positions on the global stage.
By the beginning of 2024, Dubai has firmly established itself as one of the most popular cities for real estate purchases worldwide, while Abu Dhabi has become one of the centres for attracting ultra-wealthy international buyers in the region. In the past year alone, over 14,000 residential properties were sold in Abu Dhabi, amounting to more than $14 billion.
There is a shift in rental market interests towards luxury housing. Villas in the affordable segment have shown a decrease in average rental rates by 4.9%, whereas villas in the luxury segment have increased by 13%, reaching 22% growth in certain areas of the capital emirate.
We can also highlight five districts of the UAE capital that have enjoyed and will continue to enjoy the greatest popularity among investors and affluent expatriates this year. The focus is on the districts of Al Reef, Al Samha, Hydra Village, Saadiyat Island, and Al Reem Island. Close behind them are Yas Island, Al Raha Beach, Khalifa City, and Al Khalidiya.
Al Reef has established itself as the primary destination for buyers of affordable apartments. Return on investment (ROI) from apartment purchases here exceeds an impressive 8%. As for villas in the affordable segment, Al Samha emerges as the main destination, with prices rising by almost 4% over the year.
Only Khalifa City and Al Ghadeer can rival these figures. Although the best alternative for purchasing housing in the affordable segment is Hydra Village. Investments in villas in this district promise a return of 6.8%. For elite offerings, it's better to turn to Al Raha Gardens with an ROI around 6% or Saadiyat Island.
Saadiyat Island performs exceptionally well in the sales of luxury housing, both villas and apartments alike. Prices for luxury apartments in this area have increased by 8.7% in 2023, while prices for premium villas have soared by almost 13%. An alternative option for purchasing premium housing could be Al Reem Island. Investors can expect a confident 6.6% ROI from investments in local elite housing.
