Bayut’s Abu Dhabi Sales Market Report for H1 2023
- Top Neighbourhoods
- Affordable Apartment Sales
- Luxury Apartment Sales
- Affordable Villa Sales
- Luxury Villa Sales
- Off-Plan Projects
Now that the first half of 2023 is wrapped up, let’s look at the performance of the Abu Dhabi real estate market during the last six months. Our Abu Dhabi sales market report for H1 2023 offers an in-depth analysis and insight into how the capital’s real estate sales market has performed so far.
Before the in-depth details, here are a few significant takeaways from the trends recorded in the Abu Dhabi sales market report H1 2023:
- The average sales-price-per-square-foot for affordable apartments has generally decreased by up to 5%. On the other hand, sales-price-per-square-foot for affordable villas increased by up to 3.42%.
- Prices for luxury properties recorded minor to moderate fluctuations. While upscale villas recorded general decreases of under 1% in sales price-per-square-foot, luxury apartments became more expensive by up to 4.4%.
- According to DARI, Abu Dhabi’s trusted digital real estate ecosystem, there were a total of 2,047 sales transactions for ready properties in the emirate in the first half of 2023.
We have segmented popular areas into ‘Affordable’ and ‘Luxury’ sections to offer you a comprehensive view of the trends in this Abu Dhabi H1 2023 sales market report.
This Abu Dhabi sales market report for H1 2023 compares the average sales price-per-square-foot observed in H1 2023 with those recorded in H2 2022.
ABU DHABI H1 2023 SALES MARKET REPORT: TOP NEIGHBOURHOODS ACCORDING TO TRENDS ON BAYUT
In recent years, the Abu Dhabi real estate sector has seen a significant influx of investments from non-resident buyers. While there are a number of intrinsic and extrinsic factors at play behind this increased interest, the prominent one is the federal government’s continuous efforts to create an investment-friendly regulatory system that secures investor confidence. The Golden Visa scheme has also helped HNWIs to consider buying properties in the capital for steadier socio-economic gains.
As per the search trends observed on Bayut, here is a list of areas in Abu Dhabi that appealed to budget investors during H1 2023:
- Al Reef
- Al Ghadeer
- Khalifa City
High-Net-Worth Individuals (HNWI) favoured the following communities in Abu Dhabi during H1 2023:
- Al Reem Island
- Al Raha Beach
- Saadiyat Island
- Yas Island
The upcoming sections of Bayut’s Abu Dhabi H1 2023 sales market report offer detailed analysis and insight into the capital’s property sales trends from January to June 2023.
AL REEF IS THE MOST POPULAR AREA FOR BUYING AFFORDABLE APARTMENTS: ABU DHABI SALES MARKET REPORT H1 2023
AVERAGE SALES PRICES FOR AFFORDABLE APARTMENTS: BAYUT’S ABU DHABI REAL ESTATE SALES MARKET REPORT H1 2023
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022 | STUDIO | 1-BED | 2-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 8.04% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| STUDIO
| 1-BED
| 2-BED
|
| Al Ghadeer | ROI 6.72% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| STUDIO
| 1-BED
| 2-BED
|
| Masdar City | ROI 7.47% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| STUDIO
| 1-BED
| 2-BED
|
| Baniyas | ROI 5.16% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| STUDIO
| 1-BED
| 2-BED
|
As per the data collected by Bayut, Al Reef continued to be the most popular choice for buying affordable apartments in Abu Dhabi:
- The average price-per-square-foot for flats for sale in Al Reef stood at AED 655 in H1 2023, representing a 2.57% decrease from H2 2022.
- According to DARI, Abu Dhabi’s trusted digital source for real estate, ready apartments for sale in Al Reef recorded transactions worth AED 30.7M in H1 2023.
- Studio flats for sale in Al Reef averaged at AED 485k. Buyers spent around AED 573k for 1-bed apartments and AED 775k for 2-bed flats in H1 2023.
Al Ghadeer secured the second spot among the top areas for buying cheap flats in Abu Dhabi:
- The price-per-square-foot for apartments for sale in Al Ghadeer averaged at AED 715, reporting a 0.86% increase from H2 2022.
- Studios for sale in Al Ghadeer were priced at AED 371k during H1 2023. The 1 and 2-bed flats for sale in Al Ghadeer were available for AED 525k and AED 697k, respectively.
Investors looking for reasonably-priced flats in Abu Dhabi also showed a preference for Masdar City:
- Apartments for sale in Masdar City recorded a 4.88% decrease in average price-per-square-foot, to stand at AED 1,165 in H1 2023.
- Buyers paid an average of AED 530k for studios, AED 775k for 1-bedroom apartments and AED 1.2M for 2-bedroom flats for sale in Masdar City.
Apart from these areas, Baniyas also captured the interest of prospective buyers in Abu Dhabi. The average price-per-square-foot for apartments for sale in Baniyas recorded a small increase of 0.14% from H2 2022 to stand at AED 750 in H1 2023.
AL REEF OFFERS THE MOST LUCRATIVE RENTAL YIELDS FOR AFFORDABLE APARTMENTS IN ABU DHABI
With regard to ROI, here are the areas that offered healthy rental yields for budget-friendly apartments in Abu Dhabi:
- Al Reef offered the most impressive returns of 8.04%.
- The average rental returns in Masdar City stood at 7.47%.
- Al Ghadeer offered a projected ROI of 6.72% in H1 2023.
AL REEM ISLAND LEADS THE POPULARITY GRAPH FOR LUXURY APARTMENT SALES IN ABU DHABI
ABU DHABI PROPERTY PRICES FOR LUXURY APARTMENTS FOR SALE: H1 2023 BAYUT ABU DHABI PROPERTY SALES MARKET REPORT
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022 | 1-BED | 2-BED | 3-BED |
|---|---|---|---|---|---|
| Al Reem Island | ROI 6.70% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 1-BED
| 2-BED
| 3-BED
|
| Al Raha Beach | ROI 5.49% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 1-BED
| 2-BED
| 3-BED
|
| Yas Island | ROI 6.41% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 1-BED
| 2-BED
| 3-BED
|
| Saadiyat Island | ROI 4.34% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 1-BED
| 2-BED
| 3-BED
|
Known for its excellent portfolio of premium properties, Al Reem Island successfully retained its spot as the most popular area for buying luxury apartments in Abu Dhabi:
- The price-per-square-foot for Al Reem Island apartments for sale averaged at AED 1,019, recording an increase of 0.31% from H2 2022.
- According to DARI, sales transactions for ready apartments in Al Reem Island in H1 2023 totalled AED 600M (0.6 billion).
- Prices for 1 and 2-bed flats for sale in Al Reem Island averaged at AED 832k and AED 1.4M, respectively. The 3-bedroom flats were valued at approximately AED 2.1M in H1 2023.
One of the trendiest destinations for waterfront living, Al Raha Beach also remained a favourite among luxury apartment buyers in Abu Dhabi:
- The average price-per-square-foot for apartments for sale in Al Raha Beach increased by 0.50% to AED 1,236 in H1 2023.
- As per DARI, ready flats sold in Al Raha Beach recorded a total transaction value of AED 215M during the last six months.
- The price for 1-bedroom flats for sale in Al Raha Beach averaged at AED 1.1M, whereas 2 and 3-bedroom apartments for sale were priced at AED 1.7M and AED 2.6M, respectively.
High-Net-Worth Individuals (HNWI) also considered Yas Island to buy luxury apartments in Abu Dhabi:
- The price-per-square-foot for upscale apartments for sale in Yas Island recorded an appreciation of 1.66% from H2 2022 to stand at AED 1,302 in H1 2023.
- According to DARI, ready apartments worth almost AED 200M were sold in Yas Island during H1 2023.
- On average, 1-bed flats for sale in Yas Island were available for AED 957k. The 2 and 3-bedroom apartments had sales prices averaging at AED 1.6M and AED 2.5M, respectively.
Our Abu Dhabi sales market report for H1 2023 data analysis also reveals that buyers were inclined towards the high-end flats for sale in Saadiyat Island. The area witnessed a 4.4% increase in average price-per-square-foot to stand at AED 1,822 in H1 2023.
AL REEM ISLAND OFFERS THE BEST ROI IN ABU DHABI FOR LUXURY APARTMENTS
The following areas generated impressive ROIs for luxury apartments in Abu Dhabi:
- Apartments in Al Reem Island offered a projected ROI of 6.70%.
- Yas Island recorded healthy rental returns of 6.41%.
- Flats in Al Raha Beach maintained an average ROI of 5.49%.
- 2 BEDS
- |
- 3 BATHS
- |
- 2018 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1206 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1200 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1209 SQFT
- 4 BEDS
- |
- 5 BATHS
- |
- 2199 SQFT
- 1 BED
- |
- 2 BATHS
- |
- 925 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1237 SQFT
AL REEF IS THE FIRST CHOICE FOR BUYING AFFORDABLE VILLAS PER ABU DHABI SALES MARKET REPORT H1 2023
AVERAGE PROPERTY PRICES IN ABU DHABI TO BUY AFFORDABLE HOUSES: BAYUT ABU DHABI SALES MARKET REPORT H1 2023
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022 | 3-BED | 4-BED | 5-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 6.05% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 3-BED
| 4-BED
| 5-BED
|
| Khalifa City | ROI 3.95% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 3-BED
| 4-BED
| 5-BED
|
| Al Samha | ROI 5.28% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 3-BED
| 4-BED
| 5-BED
|
| Mohammed Bin Zayed City | ROI 5.49% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 3-BED
| 4-BED
| 5-BED
|
| Al Ghadeer | ROI 5.63% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 3-BED
| 4-BED
| 5-BED
|
Looking at the real estate market report Abu Dhabi sales H1 2023 stats for villas, Al Reef remained the most attractive option for buying affordable houses in Abu Dhabi:
- The average sales price-per-square-foot to buy houses in Al Reef stood at AED 715, following a 1.52% increase from H2 2022.
- According to DARI, the sale transactions for ready villas in Al Reef during H1 2023 were valued at AED 97.4M.
- 3-bedroom houses for sale in Al Reef averaged at AED 1.6M, whereas 4 and 5-bedroom villas were priced at AED 2.2M and AED 2.5M, respectively.
Khalifa City was another area that caught the attention of investors looking for reasonably-priced villas in Abu Dhabi:
- The average price-per-square-foot for villas for sale in Khalifa City increased by 0.47% to stand at AED 873 in H1 2023.
- DARI stats reveal that the total sales transaction value for villas in Khalifa City in H1 2023 was AED 115.5M.
- The sales price for 3-bedroom houses for sale in Khalifa City averaged at AED 4.2M. The 4 and 5-bed villas were priced at AED 4.2M and AED 5.9M, respectively.
Price-conscious buyers also favoured the following areas in Abu Dhabi:
- Al Samha
- Mohammed Bin Zayed City
- Al Ghadeer
The sales price-per-square-foot in for houses in Al Samha and Al Ghadeer reported upticks of up to 3.42%. Mohammed Bin Zayed City however, recorded a decrease of 2.76% in the average price-per-square-foot for villa sales.
AL REEF OFFERS THE HIGHEST ROI IN ABU DHABI FOR AFFORDABLE VILLAS
Prospective investors looking for lucrative returns on affordable buy-to-let villas in Abu Dhabi were drawn towards the following areas:
- Al Reef villas recorded the highest ROI of 6.05%.
- Homes in Al Ghadeer offered healthy returns of 5.63%.
- Mohammed Bin Zayed City reported projected rental yields of 5.49%.
SAADIYAT ISLAND HOLDS THE TOP SPOT FOR BUYING LUXURY VILLAS IN ABU DHABI
PROPERTY PRICES FOR LUXURY VILLAS: ABU DHABI SALES MARKET REPORT H1 2023
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022 | 4-BED | 5-BED | 6-BED |
|---|---|---|---|---|---|
| Saadiyat Island | ROI 4.51% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 4-BED
| 5-BED
| 6-BED
|
| Yas Island | ROI 4.90% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 4-BED
| 5-BED
| 6-BED
|
| Al Raha Gardens | ROI 6.19% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2022
| 4-BED
| 5-BED
| 6-BED
|
As per Bayut’s data, Saadiyat Island remained the first choice for luxury villa buyers in Abu Dhabi:
- The price-per-square-foot for houses for sale in Saadiyat Island increased by 7.3% to stand at AED 1,818 in H1 2023.
- DARI reported AED 300M worth of sales transactions for ready villas in Saadiyat Island during the first half of 2023.
- The sales price of 4-bed villas in Saadiyat Island averaged at AED 7.7M. The 5 and 6-bed villas for sale in Saadiyat Island were available for AED 17M and AED 23.7M, respectively.
Abu Dhabi’s renowned destination, Yas Island, retained its popularity among High-Net-Worth Individuals (HNWI) for buying luxury villas in the city:
- The average price-per-square-foot for villas for sale in Yas Island came in at AED 1,176, subsequent to a 0.53% decrease from H2 2022.
- DARI statistics show that ready luxury villas worth AED 200M were sold on Yas Island during the first six months of 2023.
- On average, buyers spent AED 6M for 4-bed houses, AED 6.7M for 5-bed villas and AED 9.6M for 6-bed villas in Yas Island, Abu Dhabi.
Buyers also favoured Al Raha Gardens when choosing premium villas in Abu Dhabi:
- Villas for sale in Al Raha Gardens recorded a 0.43% decrease in price-per-square-foot to stand at AED 836 in H1 2023.
- Ready villas in Al Raha Gardens recorded sales transactions worth AED 18M during 2023’s first half.
- Villas for sale in Al Raha Gardens averaged at AED 2.9M for 4-bed and AED 4.3M for 5-bed units. The 6-bed villas for sale in Al Raha Gardens were valued at AED 4.9M, on average.
AL RAHA GARDENS HAS THE HIGHEST RENTAL RETURNS FOR LUXURY VILLAS IN ABU DHABI
As per our data, here is a list of areas that yielded healthy rental returns for luxury villas in Abu Dhabi:
- Al Raha Gardens offered the highest ROI of 6.19%.
- Yas Island reported impressive rental returns of 4.90%.
- The ROI for villas in Saadiyat Island was 4.51%.
- 5 BEDS
- |
- 6 BATHS
- |
- 2941 SQFT
KEY OFF-PLAN PROJECTS IN ABU DHABI: 2023 H1 SALES MARKET REPORT FOR ABU DHABI
The off-plan sector is generating quite a buzz in the UAE capital. As per DARI’s stats, 3,856 sales transactions were conducted for off-plan properties in Abu Dhabi during the first half of 2023. This section of the 2023 H1 sales market report for Abu Dhabi reveals the most-searched-for areas for off-plan villas and apartments.
MOST POPULAR OFF-PLAN APARTMENT DEVELOPMENTS 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 Al Ghadeer Phase II | LOCATION Al Ghadeer | CATEGORY Affordable |
PROJECT Yas Bay | LOCATION Yas Island | CATEGORY Luxury |
PROJECT Makers District | LOCATION Al Reem Island | CATEGORY Luxury |
PROJECT Saadiyat Cultural District | LOCATION Saadiyat Island | CATEGORY Luxury |
During H1 2023, buyers in search of affordable off-plan apartment projects in Abu Dhabi were mostly attracted to suburban options:
- Based on the data collected for Bayut’s Abu Dhabi sales property market report H1 2023, Plaza by Reportage in Masdar City was the most appealing option for budget off-plan apartments in Abu Dhabi.
- Investors also preferred serene neighbourhoods like Reeman 1 in Al Shamkha and Al Ghadeer Phase II for affordable off-plan flats in Abu Dhabi.
HNWI investors and buyers looking for luxury properties gravitated more towards island communities in Abu Dhabi:
- Yas Bay in Yas Island emerged as the top choice for prospective investors interested in luxury off-plan flats.
- Al Reem Island’s Makers District and Saadiyat Island’s Saadiyat Cultural District also appealed to those looking for premium off-plan apartments.
TOP OFF-PLAN VILLA PROJECTS IN ABU DHABI
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Noya | LOCATION Yas Island | CATEGORY Affordable |
PROJECT Fay Al Reeman 2 | LOCATION Al Shamkha | CATEGORY Affordable |
PROJECT Yas Acres | LOCATION Yas Island | CATEGORY Luxury |
PROJECT Saadiyat Lagoons | LOCATION Saadiyat Island | CATEGORY Luxury |
As per the data accumulated for Bayut’s Abu Dhabi H1 2023 sales market report, buyers interested in affordable off-plan villas were most inclined to suburban and island communities:
- Off-plan houses in Noya, Yas Island emerged as the top choice among investors in H1 2023.
- Al Shamkha’s Fay Al Reeman 2 also appealed to buyers interested in off-plan budget-friendly villas.
The most interest in luxury off-plan villas in Abu Dhabi was concentrated in the city’s coveted residential islands:
- Yas Acres, Yas Island garnered the highest investor interest for upscale off-plan villas in the UAE capital.
- Saadiyat Lagoons also attracted investors wanting to buy luxury off-plan villas in Abu Dhabi.
Commenting on the trends, the CEO of Bayut and Head of Dubizzle Group MENA, Haider Khan, said:
“Six months into 2023, and we’re loving what we’re witnessing right now with the market being at one of its best stages ever. The much-discussed millionaire migration is a very real factor, with HNWIs from around the globe dedicating significant budgets for investment in UAE real estate. For those investors, the lure of Abu Dhabi’s luxurious island communities is obvious. Highly-desired and established locales such as Yas Island and Saadiyat Island, along with upcoming master-projects like that of Jubail Island, look set to ensure that investor interest will remain significant for some time yet.
It’s also interesting to note that according to DARI, there were about 2,000+ sales transactions for ready properties in the emirate during the first half of 2023, with value more than doubling since the same period in 2022. Whilst investors taking advantage of favourable market conditions is undoubtedly a factor in that high number, it’s also likely that holistic increases across Abu Dhabi’s rental sector are bearing an influence with more people opting to become homeowners than paying large sums in rents.
We can see this rising interest in the growth of our traffic as well. In the last six months we have had nearly 6.5 million visits just for properties advertised in Abu Dhabi. This number has been steadily increasing over the years and we can expect to go even higher with more international interest coming into the Abu Dhabi market.”
That wraps up Bayut’s Abu Dhabi Sales Market Report for H1 2023. Check out our H1 2023 Abu Dhabi Rental Market Report for all the essential insights into rental trends.
You can read Bayut’s Dubai Sales Market Report for H1 2023 to see how the market fared in the first six months in the neighbouring emirate.
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Disclaimer: The above Abu Dhabi sales real estate market report (MKTRPTH12023) 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.
