Bayut’s Q1 2023 Abu Dhabi Sales Market Report
- Top Neighbourhoods
- Affordable Apartment Sales
- Luxury Apartment Sales
- Affordable Villa Sales
- Luxury Villa Sales
- Off-Plan Projects
As we enter the second quarter of 2023, it’s the perfect time to take a look at the performance of the Abu Dhabi real estate market during the first three months of the year. Our Abu Dhabi Q1 2023 sales market report offers in-depth analysis and insight of how the capital’s real estate sales market has been performing this year thus far.
This report compares the average sales price-per-square-foot observed in Q1 2023 with those recorded in Q4 2022.
Here’s a couple of quick but significant takeaways from the trends recorded in the Abu Dhabi sales market report Q1 2023:
- The average sales-price-per-square-foot for affordable apartments and villas decreased by up to 16%.
- Prices for luxury properties recorded increases of up to 13%.
We have segmented popular areas into ‘Affordable’ and ‘Luxury’ sections to offer you a tailored view of the sales trends in this Abu Dhabi Q1 sales market report for 2023.
ABU DHABI ANNUAL SALES MARKET REPORT FOR Q1 2023: TOP NEIGHBOURHOODS IN ABU DHABI ACCORDING TO TRENDS ON BAYUT
The capital has successfully been attracting a stream of investors in recent years, thanks in no small part to its Golden Visa scheme, buyer-friendly conditions and government-led initiatives. Q1 2023 was no exception. The quarter witnessed an influx of off-shore and on-shore investment across prominent areas in Abu Dhabi. These investments (along with other significant factors) ensured the demand for luxury properties in Abu Dhabi continued to grow, pushing property prices upwards.
As per the search trends observed on Bayut, here is a list of areas in Abu Dhabi that appealed to small-ticket investors during Q1 2023:
- Al Reef
- Al Ghadeer
- Khalifa City A
- Hydra Village
High-Net-Worth (HNW) investors favoured the following communities in Abu Dhabi during Q1 2023:
- Al Reem Island
- Al Raha Beach
- Saadiyat Island
- Yas Island
In the following sections of Bayut’s Abu Dhabi Q1 2023 sales market report, we offer detailed analysis and insight into the capital’s property sales trends from January to March 2023.
AL REEF IS THE MOST POPULAR AREA FOR AFFORDABLE APARTMENTS: ABU DHABI SALES MARKET REPORT Q1 2023
Q1 2023 PROPERTY PRICES IN ABU DHABI TO BUY AFFORDABLE FLATS
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022 | STUDIO | 1-BED | 2-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 7.77% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| STUDIO
| 1-BED
| 2-BED
|
| Al Ghadeer | ROI 7.07% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| STUDIO
| 1-BED
| 2-BED
|
| Masdar City | ROI 7.19% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| STUDIO
| 1-BED
| 2-BED
|
| Baniyas | ROI 4.75% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 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 685 in Q1 2023, following a 2.55% increase from Q4 2022.
- According to DARI, Abu Dhabi’s trusted digital source for real estate, ready apartments for sale in Al Reef recorded transactions worth AED 15.2M in Q1 2023.
- The sales prices for apartments in Al Reef averaged at AED 479k for studios, AED 601k for 1-bed apartments and AED 770k for 2-bed flats in Q1 2023.
Al Ghadeer emerged as the second most searched-for area for buying cheap flats in Abu Dhabi:
- The price-per-square-foot for apartments for sale in Al Ghadeer averaged at AED 703, reporting no change from Q4 2022.
- The cost of buying studios in Al Ghadeer averaged at AED 350k for studios in Q1 2023, whereas 1 and 2-bedroom apartments in Al Ghadeer were available for AED 502k and AED 687k respectively.
Investors looking for reasonably-priced flats in Abu Dhabi also showed preference for Masdar City:
- Apartments for sale in Masdar City recorded a 1.59% increase in average price-per-square-foot, rising from AED 1,164 to AED 1,183 in Q1 2023.
- Q1 2023 saw investors paying an average of AED 540k for studios, AED 783k for 1-bedroom apartments and AED 1.3M 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 decrease of 2.94% from Q4 2022 to stand at AED 748k in Q1 2023.
AL REEF OFFERS THE BEST RENTAL YIELDS IN ABU DHABI FOR AFFORDABLE APARTMENTS
With regard to ROI, the following areas offered healthy returns for budget-friendly apartments in Abu Dhabi:
- Al Reef offered the highest ROI of 7.77%.
- Apartments in Masdar City recorded excellent returns of 7.19%.
- Al Ghadeer offered a projected ROI of 7% in Q1 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 Q1 2023
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022 | 1-BED | 2-BED | 3-BED |
|---|---|---|---|---|---|
| Al Reem Island | ROI 6.66% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 1-BED
| 2-BED
| 3-BED
|
| Al Raha Beach | ROI 5.88% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 1-BED
| 2-BED
| 3-BED
|
| Yas Island | ROI 6.37% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 1-BED
| 2-BED
| 3-BED
|
| Saadiyat Island | ROI 4.70% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 1-BED
| 2-BED
| 3-BED
|
In the luxury sector, Al Reem Island retained its standing as the most popular area for buying upscale apartments in Abu Dhabi:
- The sale price-per-square-foot for flats for sale in Al Reem Island averaged at AED 1,011, subsequent to an increase of 1.96% from Q4 2022.
- According to DARI, the total sales transactions for Al Reem Island apartments (ready) in Q1 2023 came in at AED 234M.
- The advertised costs of 1 and 2-bedroom apartments for sale in Al Reem Island averaged at AED 834k and AED 1.3M respectively, whereas 3-bedroom flats were valued at AED 1.9M in Q1 2023.
Boasting waterfront living, Al Raha Beach remained a firm favourite among apartment buyers in Abu Dhabi:
- The average price-per-square-foot for apartments for sale in Al Raha Beach increased by 3.83% to stand at AED 1,225 in Q1 2023.
- As per DARI, ready flats sold in Al Raha Beach recorded a total transaction value of AED 86.3M during the last three months.
- The price for 1-bedroom flats for sale in Al Raha Beach averaged at AED 1.1M, whereas 2 and 3-bedroom apartments were sold for an average of AED 1.6M and AED 2.6M respectively.
High-Net-Worth (HNW) investors were also drawn towards Yas Island to buy luxury apartments in Abu Dhabi:
- The price-per-square-foot for upscale apartments for sale in Yas Island recorded a modest appreciation of 4.14% from Q4 2022 to stand at AED 1,278 in Q1 2023.
- According to DARI, ready apartments worth almost AED 56M were sold in Yas Island during Q1 2023.
- On average, investors bought 1-bed apartments in Yas Island for AED 1M, whereas 2 and 3-bedroom units were sold for AED 1.5M and AED 2.2M, respectively.
In addition to these areas, buyers were inclined towards the high-end flats for sale in Saadiyat Island, which witnessed a 12.9% increase in average price-per-square-foot, to stand at AED 1,691 in Q1 2023. This rise in prices could be consequent to properties being listed at higher price points to benefit from the growing demand for villas.
- 2 BEDS
- |
- 3 BATHS
- |
- 1594 SQFT
- 2 BEDS
- |
- 5 BATHS
- |
- 2001 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1527 SQFT
- STUDIO
- |
- 1 BATH
- |
- 379 SQFT
- 3 BEDS
- |
- 5 BATHS
- |
- 2163 SQFT
- 1 BED
- |
- 1 BATH
- |
- 503 SQFT
AL REEM ISLAND OFFERS THE BEST ROI IN ABU DHABI FOR LUXURY APARTMENTS
As per our data, the following areas boasted impressive ROIs for luxury apartments in Abu Dhabi:
- Apartments in Al Reem Island offered a projected ROI of 6.66%.
- Yas Island recorded healthy rental returns of 6.37%.
- Flats in Al Raha Beach maintained an average ROI of 5.88%.
AL REEF IS THE FIRST CHOICE FOR BUYING AFFORDABLE VILLAS: ABU DHABI SALES MARKET REPORT Q1 2023
ABU DHABI Q1 2023 PROPERTY PRICES FOR BUYING AFFORDABLE VILLAS
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022 | 3-BED | 4-BED | 5-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 6.13% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 3-BED
| 4-BED
| 5-BED
|
| Khalifa City A | ROI 4.56% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 3-BED
| 4-BED
| 5-BED
|
| Hydra Village | ROI 6.72% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 3-BED
| 4-BED
| 5-BED
|
| Al Ghadeer | ROI 5.80% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 3-BED
| 4-BED
| 5-BED
|
| Baniyas | ROI 4.33% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 3-BED
| 4-BED
| 5-BED
|
When it comes to villas, Al Reef remained the most attractive option for buying affordable houses in Abu Dhabi:
- The average sales price-per-square-foot for purchasing houses in Al Reef stood at AED 707, following an increase of 4.69% from Q4 2022.
- According to DARI, the sale transactions for villas in Al Reef during Q1 2023 were valued at AED 51.9M.
- The cost of 3-bedroom houses for sale in Al Reef averaged at AED 1.5M, whereas 4 and 5-bedroom villas were priced at AED 2.2M and AED 2.5M respectively.
Khalifa City A was another area that caught the attention of investors looking for reasonably-priced villas in Abu Dhabi:
- The average price-per-square-foot for houses for sale in Khalifa City A declined by 3.18% to stand at AED 704 in Q1 2023.
- DARI reports the total sales transaction value for villas in Khalifa City A to be AED 48.3M in Q1 2023
- The sales price for 3-bedroom houses for sale in Khalifa City A averaged at AED 4.2M, whereas 4 and 5-bedroom houses were available for AED 5.5M and AED 6.3M respectively.
Price-conscious buyers also preferred Hydra Village to buy cheap villas in Abu Dhabi:
- The price-per-square-foot for buying houses in Hydra Village averaged at AED 495, following an increase of 0.57% from Q4 2022.
- 3-bedroom houses for sale in Hydra Village reported average prices of AED 946k in Q1 2023.
Villa buyers also favoured the following areas:
- Al Ghadeer
- Baniyas
Among these communities, houses in Baniyas reported a significant decrease of 16.3% to stand at AED 764, which could be attributed to landlords pricing their properties lower than before to drive demand.
HYDRA VILLAGE OFFERS THE HIGHEST ROI IN ABU DHABI FOR AFFORDABLE VILLAS
Prospective investors keen on buying villas in Abu Dhabi will likely be drawn towards the following areas:
- Hydra Village recorded the highest ROI of 6.72%.
- Homes in Al Reef offered healthy returns of 6.13%.
- Al Ghadeer reported projected rental yields of 5.80%.
SAADIYAT ISLAND IS THE MOST POPULAR AREA TO BUY LUXURY VILLAS IN ABU DHABI
PROPERTY PRICES FOR LUXURY VILLAS: ABU DHABI SALES MARKET REPORT Q1 2023
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022 | 4-BED | 5-BED | 6-BED |
|---|---|---|---|---|---|
| Saadiyat Island | ROI 4.64% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 4-BED
| 5-BED
| 6-BED
|
| Yas Island | ROI 5.03% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 4-BED
| 5-BED
| 6-BED
|
| Al Raha Gardens | ROI 6.06% | PRICE PER SQ.FT Avg. Price/sq.ftChange from Q4 2022
| 4-BED
| 5-BED
| 6-BED
|
As per the data extracted by Bayut, Saadiyat Island remained the first choice for luxury villa buyers in Abu Dhabi:
- The price-per-square-foot for purchasing houses in Saadiyat Island increased by 12.7% to stand at AED 1,622 in Q1 2023. This rise is likely driven by landlords listing their properties at higher prices to derive value from the increased demand for villas.
- DARI reveals an AED 110M worth of transactions for ready houses in Saadiyat Island during the first quarter of 2023.
- The cost of 4-bed sale villas in Saadiyat Island averaged at AED 7.8M, whereas 5 and 6-bed houses for sale in Saadiyat Island were advertised for averages of AED 15.9M and AED 18.3M respectively.
Abu Dhabi’s waterfront paradise, Yas Island, retained its popularity among High-Net-Worth (HNW) buyers for luxury villas in the city:
- The average price-per-square-foot for villas in Yas Island stood at AED 1,143 subsequent to an increase of 5.99% from Q4 2022.
- As per DARI, ready houses worth AED 114M were sold on Yas Island during the last three months.
- On average, investors spent AED 5.8M for 4-bed houses, AED 6.3M for 5-bed villas and AED 9.9M for 6-bed units in Yas Island, Abu Dhabi.
Buyers also showed an inclination towards Al Raha Gardens for upscale houses in Abu Dhabi:
- Houses for sale in Al Raha Gardens recorded a 0.50% decrease in price-per-square-foot to stand at AED 834 in Q1 2023.
- As per DARI, houses worth AED 8.2M were sold in Al Raha Gardens during Q1 2023.
- Villas for sale in Al Raha Gardens averaged at AED 2.8M for 4-bed and AED 4.2M for 5-bed units. The 6-bed houses for sale in Al Raha Gardens were valued at an average of AED 4.7M.
- 4 BEDS
- |
- 6 BATHS
- |
- 5795 SQFT
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 lavish houses in Abu Dhabi:
- Al Raha Gardens offered the highest ROI of 6.06%.
- Yas Island reported impressive rental returns of 5.03%.
- The average ROI for villas in Saadiyat Island was 4.64%.
KEY OFF-PLAN PROJECTS IN ABU DHABI
MOST POPULAR OFF-PLAN APARTMENTS IN ABU DHABI
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT The Gate | LOCATION Masdar City | CATEGORY Affordable |
PROJECT Al Ghadeer Phase II | LOCATION Al Ghadeer | CATEGORY Affordable |
PROJECT Diva | LOCATION Yas Island | CATEGORY Affordable |
PROJECT Yas Bay | LOCATION Yas Island | CATEGORY Luxury |
PROJECT Shams Abu Dhabi | LOCATION Al Reem Island | CATEGORY Luxury |
PROJECT Saadiyat Cultural District | LOCATION Saadiyat Island | CATEGORY Luxury |
As per our data, here is a list of the off-plan apartments projects in Abu Dhabi that generated strong demand from investors in Q1 2023:
- The Gate in Masdar City emerged as the first choice among budget-conscious buyers.
- Potential buyers also expressed their interest towards Al Ghadeer Phase II in Al Ghadeer and Diva in Yas Island.
- High-income investors on the lookout for luxury projects preferred Yas Bay on Yas Island.
- Shams Abu Dhabi on Al Reem Island and Saadiyat Cultural District on Saadiyat Island also garnered consumer interest for off-plan apartments in the luxury sector.
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 Tamouh | LOCATION Al Reem Island | CATEGORY Luxury |
Buyers searching for villa projects in Abu Dhabi largely focused on the island communities, with the exception of Al Shamkha:
- Noya in Yas Island emerged as an attractive option in the budget category.
- Fay Al Reeman 2 in Al Shamkha also attracted budget-conscious buyers in Q1 2023.
- Yas Acres in Yas Island remained a firm favourite among investors in the luxury sector.
- Off-plan villas in Tamouh in Al Reem Island also garnered attention from high-income buyers.
Please note that some of the off-plan areas listed above may have more than one project or phase, some of which may have been completed and handed over.
Commenting on the trends in Abu Dhabi, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said:
“As one of the most stable real estate markets, not just in the UAE, but also in the wider GCC region, Abu Dhabi continues to attract potential buyers and investors looking for long term gains. Interest remains high in upscale, integrated communities which are also being well placed from a tourism perspective. Footfall in communities like Yas Island and Saadiyat Island keeps growing, and properties in these areas are still far more competitive with the average price per square foot not exceeding $500- $600, compared to global waterfront communities where price per sq.ft tends to be well over the $5000 mark.
Traffic on Bayut for listings in Abu Dhabi have exceeded 4.5 million sessions in the first quarter alone, and transactions have also increased with DARI reporting over 60% increase in off-plan transactions compared to the same period in 2022. All these trends indicate a promising start for the capital this year.”
That brings an end to our Abu Dhabi Q1 Sales Market Report for 2023. Those interested in learning how the capital’s rental trends fared over the last three months can take a look at our Abu Dhabi Q1 2023 Rental Market Report.
Prospective buyers looking for long-term investments can also check out Bayut’s Q1 Dubai Sales Market Report for 2023.
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Disclaimer: The above report (MKKT RPT Q1 2023) is based on prices for ready properties advertised on Bayut.com by real estate agencies on behalf of their clients. These prices are not representative of actual real estate transactions conducted in Abu Dhabi.
