Bayut’s Abu Dhabi Annual Sales Market Report 2023
- Top Neighbourhoods
- Affordable Apartment Sales
- Luxury Apartment Sales
- Affordable Villa Sales
- Luxury Villa Sales
- Off-Plan Projects
With 2023 ending on a high note, it’s the perfect opportunity to reflect on the Abu Dhabi real estate market performance during the past year. To provide valuable insights into consumer behaviour, area popularity and other important factors, Bayut has released its Abu Dhabi annual sales market report for 2023.
By comparing the average sales price-per-square-foot in the last year with 2022 data, we offer you a comprehensive understanding of the market trends. The real estate market in Abu Dhabi experienced some interesting developments. Here’s a quick overview of the property trends observed in our Abu Dhabi annual sales market report for 2023:
- While there has been a 2.05% decrease in the average price-per-square-foot for affordable apartments, budget-friendly villas have seen a 3.95% increase in prices.
- Luxury properties in the capital city have generally performed well, with significant price increases of up to 13% in apartment and villa categories.
- According to DARI, Abu Dhabi’s trusted digital real estate ecosystem, there were more than 4,000 sales transactions worth over AED 16 billion recorded for ready properties in 2023.
We have segmented popular areas into ‘Affordable’ and ‘Luxury’ sections to offer a more tailored view of the sales trends in this Abu Dhabi annual sales market report for 2023.
This Abu Dhabi sales market report for 2023 compares the average sales price-per-square-foot observed in 2023 with those recorded in 2022.
ABU DHABI ANNUAL SALES MARKET REPORT: TOP NEIGHBOURHOODS ACCORDING TO ABU DHABI REAL ESTATE MARKET ANALYSIS
The UAE capital has recently experienced significant growth and development, making it a hotspot for real estate investment. One of the key trends in the Abu Dhabi sales market report is the increasing demand for luxury properties. The emirate has seen a rise in the number of High-Net-Worth-Individuals (HNWI) seeking luxurious and exclusive homes. This demand has propelled high-end residential projects catering to discerning tastes.
The residential property market in Abu Dhabi overall has seen varying pricing trends during 2023. According to the Abu Dhabi annual sales market report, budget-conscious buyers were attracted to areas such as:
- Al Reef
- Al Ghadeer
- Khalifa City
- Hydra Village
Price hikes across the luxury segment indicate a positive trajectory for the real estate market in Abu Dhabi and highlight the city’s attractiveness among affluent buyers. HNWI favoured the following communities in 2023:
- Al Reem Island
- Yas Island
- Saadiyat Island
AL REEF IS THE MOST POPULAR AREA FOR FINDING AFFORDABLE APARTMENTS: ABU DHABI ANNUAL REAL ESTATE MARKET REPORT FOR 2023
AVERAGE 2023 ABU DHABI PROPERTY PRICES FOR AFFORDABLE FLATS
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022 | STUDIO | 1-BED | 2-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 8.04% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| STUDIO
| 1-BED
| 2-BED
|
| Al Ghadeer | ROI 7.14% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| STUDIO
| 1-BED
| 2-BED
|
| Masdar City | ROI 7.31% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| STUDIO
| 1-BED
| 2-BED
|
| Baniyas | ROI 5.09% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| STUDIO
| 1-BED
| 2-BED
|
Bayut’s data shows that Al Reef remains the top choice for those seeking affordable apartments in Abu Dhabi:
- The average price-per-square-foot for flats for sale in Al Reef was AED 644, which indicates a 2.05% decrease from 2022.
- According to DARI, a trusted digital source for real estate in Abu Dhabi, there were 130 transactions worth around AED 90M for ready apartments for sale in Al Reef in 2023.
- Studio flats for sale in Al Reef had an average price of AED 475k. The average cost of 1-bed apartments was AED 572k, while 2-bed flats were sold at an average price of AED 772k.
Al Ghadeer ranked second among the top areas in Abu Dhabi for buying inexpensive flats:
- Those interested in apartments for sale in Al Ghadeer will find that the average price-per-square-foot rose slightly to AED 717, a 0.33% increase from the previous year.
- Studios for sale in Al Ghadeer were priced at AED 371k, while 1-bedroom and 2-bedroom flats were available for AED 522k and AED 696k, respectively.
Investors searching for reasonably-priced flats in Abu Dhabi have shown a preference for Masdar City:
- In 2023, the average price-per-square-foot for apartments for sale in Masdar City decreased by 2.05%, reaching AED 1,159.
- The average price paid by buyers for studios was AED 530k, AED 763k for 1-bedroom apartments and AED 1.1M for 2-bedroom flats for sale in Masdar City.
Apart from these areas, Baniyas also attracted prospective buyers in Abu Dhabi. The average price-per-square-foot for apartments for sale in Baniyas dropped slightly from 2022 to end up at AED 744 in 2023.
AL REEF OFFERS THE MOST LUCRATIVE RENTAL YIELDS FOR AFFORDABLE APARTMENTS IN ABU DHABI
Regarding return on investment (ROI), here’s a list of areas in Abu Dhabi that offer good rental yields for budget-friendly apartments:
- Al Reef was the most lucrative option, with an impressive return of 8.04%.
- The rental returns in Masdar City were also high at 7.31%.
- Al Ghadeer offered a projected ROI of 7.14% in 2023.
AL REEM ISLAND GAINS THE MOST TRACTION FOR LUXURY APARTMENT SALES IN ABU DHABI
MOST POPULAR AREAS TO BUY LUXURY APARTMENTS: ABU DHABI SALES MARKET REPORT 2023
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022 | 1-BED | 2-BED | 3-BED |
|---|---|---|---|---|---|
| Al Reem Island | ROI 6.65% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 1-BED
| 2-BED
| 3-BED
|
| Al Raha Beach | ROI 5.46% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 1-BED
| 2-BED
| 3-BED
|
| Yas Island | ROI 6.52% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 1-BED
| 2-BED
| 3-BED
|
| Saadiyat Island | ROI 4.24% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 1-BED
| 2-BED
| 3-BED
|
As Abu Dhabi’s population continues to grow, there is a corresponding demand for a wide range of housing options. Developers focus on creating properties offering state-of-the-art amenities and stunning views of the city’s skyline and waterfront.
Al Reem Island has a reputation for offering a great selection of high-end properties and continues to be the top choice for those looking to buy luxury apartments in Abu Dhabi:
- The average price-per-square-foot for Al Reem Island apartments for sale was AED 1,048, representing a 0.73% increase from 2022.
- According to DARI, sales transactions for ready apartments on Al Reem Island in 2023 amounted to over AED 1 billion.
- The average prices for 1 and 2-bed flats for sale in Al Reem Island were AED 853k and AED 1.4M, respectively. Meanwhile, 3-bedroom flats were valued at around AED 2.1M in 2023.
Al Raha Beach, known for its trendy waterfront living, is the second most popular spot for luxury apartment purchases in Abu Dhabi:
- In 2023, the average price-per-square-foot for apartments for sale in Al Raha Beach went up by 1.15% to reach AED 1,255.
- According to DARI, more than 200 ready flats were sold in Al Raha Beach, with the total transaction value surpassing AED 400M.
- The average price for 1-bedroom flats for sale in Al Raha Beach was AED 1.2M, while 2 and 3-bedroom apartments were priced at AED 1.7M and AED 2.6M, respectively.
Yas Island was the preferred choice for High-Net-Worth Individuals (HNWI) looking to purchase luxury apartments in Abu Dhabi in 2023:
- The price per square foot of upscale apartments for sale in Yas Island increased by 1.72% from 2022 to reach AED 1,332 in 2023.
- According to DARI, more than 200 ready apartments worth around AED 3 billion were sold in Yas Island in 2023.
- On average, 1-bedroom flats for sale in Yas Island were priced at AED 990k. Meanwhile, 2 and 3-bedroom apartments had average sales prices of AED 1.7M and AED 2.4M, respectively.
Our Abu Dhabi annual real estate market report for 2023 also reveals that buyers were inclined towards the high-end flats for sale in Saadiyat Island. The area witnessed an 8.73% increase in average price-per-square-foot to stand at AED 1,942 in 2023.
AL REEM ISLAND OFFERS THE HIGHEST RETURN ON INVESTMENT FOR LUXURY APARTMENTS
The luxury apartment market in Abu Dhabi has witnessed impressive ROIs in certain areas. Listed below are the neighbourhoods that have performed exceptionally well in the last year:
- The projected ROI for luxury apartments in Al Reem Island was 6.65%.
- Yas Island recorded healthy rental returns of 6.52%.
- Flats in Al Raha Beach had an average ROI of 5.46%.
- 1 BED
- |
- 2 BATHS
- |
- 967 SQFT
- 2 BEDS
- |
- 4 BATHS
- |
- 1436 SQFT
- 1 BED
- |
- 2 BATHS
- |
- 970 SQFT
- 3 BEDS
- |
- 5 BATHS
- |
- 1955 SQFT
- 3 BEDS
- |
- 4 BATHS
- |
- 2281 SQFT
- 4 BEDS
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- 5 BATHS
- |
- 4269 SQFT
AL REEF IS THE MOST ATTRACTIVE DESTINATION FOR BUYING AFFORDABLE VILLAS: ABU DHABI ANNUAL SALES MARKET REPORT
2023 PROPERTY PRICES IN ABU DHABI FOR AFFORDABLE VILLAS
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022 | 3-BED | 4-BED | 5-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 6.15% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 3-BED
| 4-BED
| 5-BED
|
| Khalifa City | ROI 3.88% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 3-BED
| 4-BED
| 5-BED
|
| Al Samha | ROI 5.31% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 3-BED
| 4-BED
| 5-BED
|
| Al Ghadeer | ROI 6.13% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 3-BED
| 4-BED
| 5-BED
|
| Hydra Village | ROI 6.78% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 3-BED
| 4-BED
| 5-BED
|
According to Bayut’s 2023 Abu Dhabi real estate market analysis, Al Reef remained the most attractive option for purchasing affordable villas in the UAE capital.
- The average price-per-square-foot for villas for sale in Al Reef increased by 1.30% from 2022, standing at AED 718.
- Based on data from DARI, the total value of sale transactions for ready villas in Al Reef during 2023 was around AED 200M.
- The average price for 3-bedroom houses for sale in Al Reef was AED 1.59M, while 4 and 5-bedroom villas were available for AED 2.21M and AED 2.54M, respectively.
Investors searching for reasonably-priced villas in Abu Dhabi have shown great interest in Khalifa City, making it an attractive area for investment:
- The average price-per-square-foot for villas for sale in Khalifa City increased by 1.84% to reach AED 854 in 2023.
- DARI recorded the total sales transaction value for villas in Khalifa City in 2023, valuing around AED 200M.
- Investors can own 3-bedroom houses for sale in Khalifa City for an average of AED 4.04M. Alternatively, buyers can choose from 4 and 5-bed villas available for AED 4.37M and AED 6M, respectively.
Buyers have also highly favoured these areas in Abu Dhabi when looking for affordable villas:
- Al Samha
- Al Ghadeer
- Hydra Village
The average price-per-square-foot for villa sales in Hydra Village dropped by 0.25%, while Al Ghadeer saw an uptick of up to 1.78%. Al Samha villas for sale also reported a 3.95% hike in the average price-per-square-foot.
HYDRA VILLAGE OFFERS THE HIGHEST ROI IN ABU DHABI FOR AFFORDABLE VILLAS
Investors seeking profitable returns on affordable villas in Abu Dhabi can consider investing in the following areas:
- Hydra Village has recorded the highest ROI of 6.78%.
- Al Reef offered healthy returns of 6.15%.
- Al Ghadeer, which has projected rental yields of 6.13%.
These areas have proven attractive to potential investors looking for lucrative opportunities, as per the Abu Dhabi Annual Real Estate Market Report 2023.
YAS ISLAND RANKED AS THE MOST POPULAR AREA TO BUY LUXURY VILLAS IN ABU DHABI
PROPERTY PRICES IN ABU DHABI FOR LUXURY VILLAS: ABU DHABI SALES MARKET REPORT 2023
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022 | 4-BED | 5-BED | 6-BED |
|---|---|---|---|---|---|
| Yas Island | ROI 5.19% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 4-BED
| 5-BED
| 6-BED
|
| Saadiyat Island | ROI 4.35% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 4-BED
| 5-BED
| 6-BED
|
| Al Raha Gardens | ROI 6.04% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2022
| 4-BED
| 5-BED
| 6-BED
|
Offering a vibrant lifestyle with world-class entertainment, shopping, dining and leisure facilities, Yas Island was the top choice for luxury villa purchases in Abu Dhabi:
- The average price-per-square-foot for villas for sale in Yas Island is AED 1,149, a minor decrease of 0.20% from 2022.
- Additionally, DARI statistics show that there has been a positive trend in the sale of ready luxury villas worth more than AED 200M on Yas Island in 2023.
- Buyers spent an average of AED 6.14M for 4-bedroom houses, AED 6.84M for 5-bedroom villas, and AED 13.6M for 6-bedroom villas in Yas Island, Abu Dhabi.
Home to some of the most prestigious museums, galleries and cultural institutions in the region, Saadiyat Island was a hit with High-Net-Worth Individuals (HNWI) for buying luxury villas in the city:
- The price-per-square-foot for houses for sale in Saadiyat Island increased by 12.9% to stand at AED 1,934 in 2023. This hike can be attributed to properties listed at higher prices to tackle increasing demand, particularly in Saadiyat Beach and HIDD Al Saadiyat.
- DARI reported around AED 800 million worth of sales transactions during 2023 for ready villas in Saadiyat Island.
- The sales price of 4-bed villas in Saadiyat Island averaged at AED 9.2M. The 5 and 6-bed villas for sale in Saadiyat Island were available for AED 17M and AED 26.3M, respectively.
Featuring luxurious villas surrounded by landscaped gardens, buyers also favoured Al Raha Gardens to buy upscale villas in Abu Dhabi:
- Villas for sale in Al Raha Gardens experienced a 0.95% increase in price-per-square-foot to stand at AED 851 in 2023.
- The average sales price was AED 2.92M for 4-bedroom villas and AED 4.4M for 5-bed units. The 6-bed villas for sale in Al Raha Gardens were available for AED 4.72M, on average.
AL RAHA GARDENS HAS THE HIGHEST RENTAL RETURNS FOR LUXURY VILLAS IN ABU DHABI
The real estate market in Abu Dhabi is diverse and offers a range of investment opportunities. If you are looking for a high ROI on luxury villas, then you might want to consider Al Raha Gardens, Yas Island or Saadiyat Island:
- According to the Abu Dhabi annual sales market report 2023, Al Raha Gardens offered the highest ROI of 6.04% for buy-to-let villas.
- Another attractive option was Yas Island, which reported impressive rental returns of 5.19%.
- The ROI for villas in Saadiyat Island was 4.35%.
- 4 BEDS
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- 8 BATHS
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- 5794 SQFT
- 4 BEDS
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- 8 BATHS
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- 5795 SQFT
TOP OFF-PLAN PROJECTS IN ABU DHABI
In 2023, off-plan sales transactions in Abu Dhabi reached over 10,000 in volume and AED 36 billion in value, as per DARI stats. The increase in transaction volumes, especially off-plan sales, demonstrates investors’ confidence in the market.
The upcoming section in the Abu Dhabi annual sales market report 2023 lists the most preferred off-plan projects for apartment and villa purchases.
MOST POPULAR OFF-PLAN APARTMENTS IN ABU DHABI
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Plaza by Reportage | LOCATION Masdar City | CATEGORY Affordable |
PROJECT Al Reeman 1 | LOCATION Al Shamkha | CATEGORY Affordable |
PROJECT Bloom Living | LOCATION Zayed City | CATEGORY Affordable |
PROJECT Yas Bay | LOCATION Yas Island | CATEGORY Luxury |
PROJECT City of Lights | LOCATION Al Reem Island | CATEGORY Luxury |
PROJECT Saadiyat Cultural District | LOCATION Saadiyat Island | CATEGORY Luxury |
- Plaza by Reportage, Reeman 1 and Bloom Living are the top choices for budget off-plan apartments in Abu Dhabi, according to Bayut’s Abu Dhabi Annual Sales Market Report 2023.
- Luxury property buyers were interested in island community developments, such as Yas Bay, City of Lights and Saadiyat Cultural District.
TOP OFF-PLAN VILLA PROJECTS IN ABU DHABI
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Fay Al Reeman 2 | LOCATION Al Shamkha | CATEGORY Affordable |
PROJECT Noya | LOCATION Yas Island | CATEGORY Affordable |
PROJECT Yas Acres | LOCATION Yas Island | CATEGORY Luxury |
PROJECT Saadiyat Lagoons | LOCATION Saadiyat Island | CATEGORY Luxury |
Abu Dhabi Annual Real Estate Market Report 2023 also highlights top villa projects among off-plan property buyers:
- Noya, Yas Island and Al Shamkha’s Fay Al Reeman 2 were the most popular choices for affordable off-plan villa purchases.
- Saadiyat Lagoons and Yas Acres, featuring luxury off-plan villas, garnered the most interest.
This wraps up our Abu Dhabi annual real estate market report. The property market in Abu Dhabi is experiencing substantial growth and offers lucrative investment opportunities. With a positive economic outlook, rising demand and attractive pricing trends, Abu Dhabi’s real estate sector remains a key player in the region.
Abu Dhabi’s property sector is a thriving ecosystem with ample opportunities for growth, investment and sustainable development. Check out our 2023 Abu Dhabi Rental Market Report for essential insights into rental trends.
Stay tuned to MyBayut to learn more about the latest trends and insights shaping the UAE real estate market in 2024.
Disclaimer: The above Abu Dhabi sales real estate market report (MKTRPTYE2023) is based on prices for ready properties advertised by real estate agencies on behalf of their clients on Bayut.com (excluding room share), and is not representative of actual real estate transactions conducted in Abu Dhabi.
