The real estate market in Abu Dhabi continues to hold its status as one of the most desirable markets and destinations for real estate investment. We can attribute this reputation to Abu Dhabi’s exceptional infrastructure, top-notch services, and diverse inventory of real estate options.
Furthermore, Abu Dhabi Emirate solidifies its position as an exceptional place for both residence and employment on a global scale.
As employment and business opportunities increase, the influx of expatriates follows. In this case, the first thing an expatriate does is how and where to rent or buy property in Abu Dhabi. Not just expatriates, the investors would love to cash on real estate investment opportunities in such a thriving economy.
If you intend to solidify your real estate portfolio and develop another consistent income stream, here is a list of some of the best places to buy property in Abu Dhabi.
However, before that, let’s get a brief overview of the current real estate market in Abu Dhabi.
Abu Dhabi Real Estate Market Trends—What’s Happening?
The Abu Dhabi real estate market had an enticing start for investors in 2023. Q1 2023 was massive for the Abu Dhabi real estate industry, recording a total transaction value of 27.9 billion AED ($7.59 billion) across 5,472 deals. The property value tripled while the mortgage deals reached 11.7 billion AED during the same period.
What’s more, according to the Q2 report by Asteco, around 1,400 apartments were added to the Abu Dhabi real estate market in the second quarter of 2023.
Additionally, there are plans to deliver another 2,200 apartments and 850 villas before 2024. Although the inventory was spread across various highly developed International Investment Zones, the majority of it was given to the Al Reem Island and Saadiyat Island master-planned communities.
Top 10 Places to Buy Property in Abu Dhabi
The following areas in Abu Dhabi have always attracted real estate investors.
1. YAS Island
Yas Island stands out as one of the most desired areas for property transactions in Abu Dhabi, with an impressive AED 1.2 billion (USD 326.7 million) in real estate transactions in early 2022.
Situated just a short 10-minute drive away from Abu Dhabi International Airport, YAS Island offers unmatched convenience for frequent travelers. The area boasts tonnes of entertainment options, green spaces, retail stores, and luxury-loaded cuisines that cater to a diverse range of interests.
In YAS Island, both residents and visitors can explore world-famous attractions like Yas Links Abu Dhabi, Ferrari World, and Warner Bros World Abu Dhabi. Some of the most notable residential projects in YAS Island include YAS Acres—North Bay, Perla 1, and Perla 2.
It is important to note that property units on Yas Island can consistently deliver an annual ROI of 7%.
2. Al Reem Island
In the first quarter of 2022, real estate transactions on Al Reem Island totaled 598 million AED (USD 162.8 million). Al Reem enjoys a strategic location as it is close to the city’s mainland and Downtown Abu Dhabi. The residential complexes within the community offer amenities such as onsite swimming pools, retail stores, and state-of-the-art gymnasiums.
Al Reem Island emerged as the most desired destination for both investors and consumers in 2021, and it has held its position in Abu Dhabi’s real estate market ever since. Some of the most notable residential real estate projects in Al Reem Island include Reem Hills, Park View at Al Reem, and One Reem Island.
The average return on investment (ROI) for real estate in Al Reem Island generally ranges between 6% to 7.5%.
3. Saadiyat Island
Saadiyat Island stands as the cultural hub of Abu Dhabi, known for famous tourist attractions like the Louvre Abu Dhabi, Manarat Al Saadiyat, the Natural History Museum Abu Dhabi, and other prominent tourist destinations. Saadiyat Island is home to marvelous infrastructure that features hotels, marinas, and shopping centers.
The Island has gained a strong reputation within Abu Dhabi’s real estate sector, and the forecasts are even better. In 2022, Saadiyat Island stood among the top 5 preferred destinations for real estate transactions in Abu Dhabi, with transactions totaling 673 million AED (approximately USD 183 million).
- One of the best and most notable things about Saadiyat Island is that it is a freehold area. International investors or real estate buyers can get 100% ownership of the properties on Saadiyat Island.
Notable projects in Saadiyat Island include Grove Museum Views, Saadiyat Beach Residences, and Louvre Abu Dhabi Residences.
Depending on the property type, the projected return on investment (ROI) falls within the range of 5.1% to 7.2%.
4. Khalifa City
Khalifa City secured the 4th position on our list of the best places to buy property in Abu Dhabi. Khalifa City is renowned for being a family-friendly community and is highly desired by renters in Abu Dhabi.
It is an independent master community that offers a mix of residential and commercial real estate options. That is why it is a preferred option among investors and tenants searching for affordable properties in Abu Dhabi.
The real estate transactions within Khalifa City reached a total value of 173 million AED (USD 47 million) during the first quarter of 2022. Notable real estate projects in Khalifa City include Al Merief, Al Rayyana, and Al Forsan Village.
This community generally yields a handsome return on investment (ROI) of 5% to 7% annually based on the property type.
5. Al Raha
Al Raha, a waterfront community, is renowned for its high status within the Emirate of Abu Dhabi, offering a variety of residential, commercial, and retail properties.
Al Raha is a highly suitable community for individuals and families alike. It possesses distinctive amenities and offers convenient access to schools, central locations, beaches, and shopping malls.
The freehold properties available here offer a variety of housing options, including townhouses, villas, and apartments, and that too amongst beautiful green surroundings.
Real estate transactions in Al Raha Beach during Q1 2022 totaled 168 million AED (USD 45.7 million). Notable projects in the Al Raha community include Al Maha, Al Zeina, and Al Naseem Residences.
On average, apartments in the Al Raha Beach area yield a return on investment (ROI) of 6.71%.
6. Corniche Area
Corniche Area is one of the most prestigious residential neighborhoods in Abu Dhabi. It is a place where luxury seamlessly blends with the serenity of the sea.
It provides residents with a lavish lifestyle, featuring amazing locations and world-class amenities that range from fine dining restaurants to peaceful beaches, entertainment hubs, and cafes. In short, this community covers every aspect of an ideal lifestyle for you and your family.
Furthermore, top-notch educational facilities, healthcare institutions, and convenient transportation options further solidify the attraction of the Corniche Area. It is a house to premium-grade villas, duplexes, and apartments, and notable projects include Etihad Towers, Al Jowhara Tower, and Nation Towers.
7. Al Maryah
Al Maryah is a contemporary yet peaceful community that offers an excellent quality of life. Located near Al Reem Island, Al Maryah provides modern-day amenities and top-tier attractions for its residents.
You can experience a vibrant lifestyle with luxury hotels, shop at Galleria Mall, and enjoy cozy cafes right at your doorstep. Al Maryah is well-connected with several bus routes, making it convenient to explore the rest of the city.
This community offers a remarkable return on investment (ROI) of 8.97%, which makes it an attractive choice for property investors and buyers.
8. Masdar City
Investing in properties that offer all modern-day amenities while promoting a sustainable lifestyle is important nowadays, and Masdar City provides that to its residents.
Developed by the Mubadala Investment Group, this community is a combination of residential and commercial real estate units with top-notch services and facilities like parks, universities, schools, and retail outlets.
Masdar City is conveniently located near Abu Dhabi International Airport, making it a preferred option for families and individuals. Most importantly, it is a freehold zone and provides a 7.36% return on investment. The houses in the community are among some of the finest residential projects in the UAE, offering studio apartments and luxurious 2 or 3-bedroom apartments.
9. Al Khalidiyah
If you are looking for the best place to buy property in Abu Dhabi, don’t forget to consider Al Khalidiyah, a lively suburb near the Corniche.
Al Khalidiyah is renowned for its diversity and luxurious apartments, and it is a hub for recreational activities. It has a cosmopolitan vibe, blending modern-day building structures with Emirati style. Its central location provides easy access to famous landmarks such as Khalidiya Mall, Corniche Beach, schools, parks, and entertainment zones.
Al Khalidiyah offers a serene yet stylish living environment. If you prefer living in towers, you can explore options like the well-known Golden Tower and Al Ain Tower. For those who prefer community living, Khalidiya Street and Corniche Al Khalidiyah are highly recommended.
10. Mohammed Bin Zayed City
If you are searching for affordable yet spacious apartments, Mohammed Bin Zayed City (MBZ) could be an excellent choice that can meet all your needs. Located in the southern part of Abu Dhabi, it offers a variety of housing options, including townhouses, apartments, villas, and compound homes.
MBZ City also boasts public parks, open spaces, entertainment zones, and reputable malls like Deerfields Mall and Mazyad Mall. With its popularity among expatriates and Emiratis alike, MBZ is one of the most sought-after and affordable residential communities, providing a family-friendly lifestyle.
Final Words
Abu Dhabi’s real estate market has been going hot; 2023 started on a pleasing note for the real estate sector, and due to high demand, an influx of new residential and commercial units will be added to Abu Dhabi’s real estate inventory before 2024. If you intend to buy property in Abu Dhabi, some of the best options include Al Reem Island, Saadiyat Island, YAS Island, Mohammed Bin Zayed City, and Al Raha.