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The costs of buying homes in Abu Dhabi have significantly gone up on the back of strong investor interest and influx of high-net-worth individuals (HNWI).
Residential real estate prices rose by 17.3% in the second quarter of the year, representing a 31.3% growth in values since Q1 2020 and bringing the average price per square foot to AED 1,230, according to Knight Frank.
In the apartment segment, prices rose by 17.3% compared to a year ago. For villa units, values have jumped by 42.3% since the first quarter of 2020.
Among the factors driving the prices up, is that the supply of new homes has not kept pace with the growth in demand.
Abu Dhabi is also increasingly seen as offering “better value for money” compared to Dubai, with residential prices in the capital estimated to be around 30% less.
Abu Dhabi’s lower price point is said to have attracted both local and international buyers.
“There is growing interest in Abu Dhabi from international buyers,” said Will McKintosh, Regional Partner – Head of Residential, MENA.
There is also a growing demand for properties among the HNWI population. According to Knight Frank’s research, 19% of polled HNWIs said they’re looking to acquire a new home in Abu Dhabi this year. The figure is higher than 14% last year.
“Demand is especially strong among those worth $30-$50 million, with some 75% of potential purchasers in this wealth bracket expressing a desire to own residential real estate, while 65% of individuals worth more than $50 million are looking to purchase a home in Abu Dhabi,” the consultancy firm said.
(Writing by Cleofe Maceda; editing by Brinda Darasha)
