Being the capital of UAE and one of the popular cities in the Middle East, Abu Dhabi has always been in the limelight when it comes to real estate investments. With the growing number of high-end construction projects, rising rents, availability of different types of properties, and rise of freehold zones, Abu Dhabi is attracting real estate investors from all over the world.

According to the 2023 Statista report, Abu Dhabi’s real estate market contributed AED 38.4 billion towards the country’s GDP. Looking at thus, we can say that the real estate market is steadily growing right now in Abu Dhabi. So, are you wondering what the future holds for Abu Dhabi’s real estate market?

In this blog, we will focus on the trends that are likely to emerge in Abu Dhabi’s real estate market and their impact on the future of the Abu Dhabi real estate market.

Future Trends of the Real Estate Market in Abu Dhabi

Let’s have a look at the key factors that influence the future of the real estate market in Abu Dhabi:

Rise of Freehold Zones

Abu Dhabi’s 2024 theme of year is “year of sustainability”, and the government is focusing on minimizing environmental impact and enhancing overall quality of life. The majority of construction projects have energy-efficient designs and prioritize renewable energy sources.

In Abu Dhabi, there are green building rating systems, such as Estidama Pearl Rating System (EPRS), WELL certification, and LEED certification, which gives rating according to the sustainability practices followed during the building construction. The government is pushing an eco-friendly and sustainable agenda, and the real estate developers are following it.

For instance, many neighborhoods in Abu Dhabi are equipped with spacious gardens, and streets are filled with greenery. They are installing solar-powered devices, electric vehicle charging stations, and more. Also, some townhouses even feature agricultural land with biodomes and water conservation measures, allowing people to grow their own crops.

Technology Integration

One of the real estate trends UAE to watch out for is that buyers want sustainable yet smart city neighborhoods with the latest technology integrations. For example, in Masdar City, smart city technologies for wastewater conservation, energy efficiency, and water usage monitoring measures are being executed, making residents satisfied with smart infrastructure.

Some areas in Abu Dhabi are installing battery buggies, traffic monitoring technologies, and VR property tours, which are attracting even more buyers. Blockchain transactions, AR and VR, data analytics and AI, and IoT are some of the latest technologies that are transforming the real estate industry. Thus, we can say that smart cities and technological advancement trends are driving more growth in the real estate market in Abu Dhabi.

More Mixed-Use Development Projects

Since few years, people started showing high interest in mixed-use development projects. That is because mixed-used projects blend corporate, residential, retail, and industrial spaces together and follow sustainable construction designs and practices. You can work, shop, and stay in the same neighborhood, cutting down commute time and money.

Al Reem Island, Yas Island, and Al Maryah Island are a few popular mixed-use development areas. As the convenience of mixed-use development projects is unmatched, there are going to be a lot more mixed-use areas in the future. Some of the ongoing mixed-use development projects in Abu Dhabi include Radiant Square, Pixel Residential Complex, etc.

Increase in Affordable Housing Projects

Another future trend in the Abu Dhabi real estate market is the increase in affordable housing properties. Abu Dhabi’s government is taking initiatives and setting up rules to support the development of more affordable housing projects. There is a regulation that requires developers to construct compulsory affordable housing properties as a part of the real estate project.

The government is offering subsidies and tax-based incentives for companies that offer more affordable properties. Moreover, private developers and the government are collaborating to fund and build more affordable housing units, which are popular among expats, young professionals, students, etc.

Steady Growth of Luxury Properties

Abu Dhabi is home to various luxurious properties, such as high-end apartments, villas, townhouses, etc. The value of the luxury property market accounts for a significant amount of the real estate market size in Abu Dhabi.

You can find luxury properties Abu Dhabi in areas like Yas Island, Saadiyat Island, and Al Reem Island where the projected per year price growth ranges from 6 to 10%. There is a growing demand for waterfront and skyline view properties with high-end amenities and well-connected neighborhoods.

Modern Amenities will Become More Common

A few years ago, only high-end residential and commercial communities were equipped with various modern amenities that provide entertainment, leisure, and relaxation. However, at present, amenities like pools, gardens, parks, spas, and others have become standard for many properties in Abu Dhabi.

In the future, modern amenities like spacious sports grounds, shopping centers, hotels, and more are going to be common in every housing community. In addition, there is a growing trend of gated communities offering water sports and other adventure activities.

More Interest in Off-plan Properties

Off-plan properties are projects that are still under construction. Investing in off-plan properties means buying a property that is yet to be constructed, which is why the prices of these properties are relatively lower than already built properties.

According to Statista, in Q1 2024, the total value of off-plan property sales is AED 44.6 billion, recording a 25.6% increased growth compared to Q1 2023. This data highlights the popularity of off-plan properties among buyers, which positively impacts the future of Abu Dhabi real estate market size.

Find Your Dream Home with Properties.market

As you can see, the future of Abu Dhabi’s real estate market is relatively thriving and is set to be on another level. From the rise of freehold zones to growing emphasis on sustainability, demand for affordable housing to luxury properties, and increase in mixed-use development projects to government’ initiatives, the real estate market in Abu Dhabi will be booming.

If you are thinking of investing in Abu Dhabi’s real estate market, now is the best time to proceed. Find the best properties that fit your preferences with the help of Properties.market, be it apartments, villas, independent houses, townhouses, or even corporate office buildings.

PM Editor

PM Editor

An expert writer and author, the editor specializes in creating content related to buying, selling, and investing in real estate. He profoundly understands the real estate industry, including current market trends, financing options, and legal considerations.

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