In the Abu Dhabi rental market, the total number of tenancy contracts registered in the third quarter of the year reached 47,077, marking a drop of 5.8% from the previous year. Over this period, new registrations grew by 7.3%, whereas renewed contracts registered dropped by 13.0%, according to research by CBRE.
Abu Dhabi rental market review also revealed that the average apartment and villa rents each increased by 1.1% in the year to Q3 2023. Considering recent rental registrations, average apartment and villa annual rents reached AED 66,823 and AED 161,683, respectively.
On the supply front, a total of 2,262 units have been delivered in Abu Dhabi in the year-to-date to Q3 2023, with 63.4% of this stock being delivered in Najmat Abu Dhabi and Shams Abu Dhabi.
By year-end, an additional 3,521 units are expected to be completed. 63.1% of this new stock is expected to be delivered in Al Maryah Island. However, given past trends, CBRE expect some of the completions will be pushed into 2024.
Sales rates
During Q3 2023, the total volume of transactions in Abu Dhabi’s residential market reached 2,930, up by 84.3% from the year prior, according to the CBRE research. This increase has been underpinned by a 101.6% growth in off-plan market sales and a 46.0% increase in secondary market sales.
In the year-to-date to Q3 2023, a total of 7,844 transactions were registered, marking a year-on-year growth of 91.1%. Over this period, off-plan transactions grew by 135.5%, and secondary market transactions rose by 22.7%.
In the year to Q3 2023, average apartment prices in Abu Dhabi increased by 0.9, while average villa prices marginally dropped by 0.1%. Based on transactional data recorded during Q3 2023, average apartment prices stood at AED 13,812 per sqm, and villa prices stood at AED 11,795 per sqm.
“Based on transactional data recorded during Q3 2023, average apartment prices stood at AED 13,812 per square metre, and villa prices stood at AED 11,795 per square metre.”
CBRE
