Abu Dhabi's real estate market is thriving due to growing demand.

Photo used for illustrative purposes. Gulf Today newspaper, staff editor.

The UAE's leading real estate portal has released its annual report on the Abu Dhabi sales and rental market for 2023

providing comprehensive analysis of the real estate market in the UAE capital. Through these comprehensive reports, Bayut reveals key insights on current market trends, price dynamics and future forecasts in the Abu Dhabi real estate sales and rental market.

Based on the search trends seen on the platform, real estate prices in Abu Dhabi continue to rise, which can be beneficial for those looking to sell or rent out their properties. While several neighborhoods saw an increase in sale prices due to high demand, this trend was particularly noticeable in upscale areas offering luxury services and amenities.

For affordable apartments, Al Reef and Al Ghadeer were the most popular search areas. Luxury apartment seekers have also shown strong interest in apartments on Al Reem Island, Yas Island and Saadiyat Island in 2023.

Data from Bayut shows that sale prices of luxury apartments and villas in popular areas of Abu Dhabi have increased by 13% in 2023. Saadiyat Island stands out in particular, where prices for luxury apartments rose by 8.73% and premium villas by 12.9%. Sale prices per square foot for popular neighborhoods with affordable apartments moderated by 2.05%.

According to DARI, Abu Dhabi's robust digital real estate ecosystem, there were more than 14,000 residential real estate transactions (completed and under construction) worth over AED 52 billion in 2023.

In terms of projected rental yields for apartments, the Al Reef neighborhood was the most impressive here with an 8.04% yield in the affordable housing category. Al Reem Island continues to offer a healthy 6.65% yield for investors interested in buying luxury apartments in Abu Dhabi. Bayut's analysis of yield data in popular villa neighborhoods in Abu Dhabi also shows a positive performance. In the affordable housing category, Hydra Village offers a 6.78% yield for homes, while Al Raha Gardens offers the highest yield of 6.04% for buy-to-let villas in the luxury villa segment.

As reported by Bayut, advertised apartment rental prices in the most popular luxury neighborhoods rose moderately to significantly by 14%, mainly in the sea island communes. Prices for affordable apartment rentals continue to remain competitive, with prices falling by nearly 3% in some areas.

Commenting on the survey results, Bayut CEO and Head of Dubizzle Group MENA Haider Ali Khan said, "What we have seen in 2023 has been a record year for the entire UAEreal estate market and Abu Dhabi has also contributed significantly to this success. Local and international wealthy investors continue to show interest in UAEreal estate as a top-notch market for investment, especially with outstanding projects such as Jubail Islands and Rahman Islands taking shape.