Abu Dhabi – Abu Dhabi’s real estate sector is experiencing a strong upward trajectory, with foreign investors emerging as key drivers behind the market's robust performance in 2024. Leading developer Aldar Properties reported that international buyers accounted for an overwhelming 78% of its total property sales, which soared to AED22.2 billion ($6 billion) last year.
This marks a 40% increase in foreign investment compared to 2023, when sales to non-UAE nationals stood at approximately AED16 billion, according to Aldar CEO Talal Al-Dhiyebi, speaking to UAE daily Al-Ittihad.
“Sales to UAE citizens stood at around 22 percent last year,” Al-Dhiyebi added, noting that the bulk of overseas buyers hailed from the UK, Russia, China, and India.
Foreign Confidence and Government Incentives Fuel Demand
Market analysts credit the surge in demand to a mix of favorable economic conditions, proactive government policy, and strong investor sentiment. Strategic government initiatives—such as long-term residency programs and business-friendly regulations—are attracting both residents and international investors to Abu Dhabi’s growing property market.
“The residential sector in Abu Dhabi is experiencing steady growth, driven by increased demand from local and international investors,” said Andrew Laver, Associate Partner at Cavendish Maxwell. “Residency incentives are playing a key role.”
According to the firm’s 2024 report, demand for ready properties increased by nearly 50%, with apartment prices rising by 11.5% and villa prices up by 12.5%. Rental rates also surged, with apartment rents climbing 13% and villas rising by 8%.
Apartment transactions dominated the market, comprising 75% of the 9,700 total sales recorded in 2024.
Supply Expanding in 2025
As momentum continues into 2025, Abu Dhabi is preparing to deliver approximately 11,000 new residential units and over 100,000 square meters of commercial office space, meeting the growing appetite from end-users and investors alike.
The Grade A office market also posted solid performance, with rental rates in central and outer CBD areas rising by 8% year-on-year, according to data from Savills. The real estate services firm also reported a 25% annual increase in industrial rental rates, underscoring the capital’s expanding logistics and manufacturing sectors.
“Occupier demand in Abu Dhabi remains strong, especially within key sectors such as financial services, consulting, and technology,” said Stephen Forbes, Head of Abu Dhabi at Savills Middle East.
Mortgage Uptake on the Rise
Falling interest rates and competitive mortgage offers from banks have also contributed to the sector’s momentum, as more buyers turn to financing options. Investor confidence remains high amid broader economic stability and ongoing infrastructure development.
Regional Expansion in Focus
Aldar’s performance reflects a broader trend of real estate expansion across the MENA region, with the developer now turning its attention toward Saudi Arabia as part of its regional growth strategy. With new project launches and secured credit facilities worth $2.5 billion, Aldar aims to build on its rising revenues, which brought its 2024 profits close to $2 billion.
