In Abu Dhabi, homes at Al Raha Beach, Saadiyat Island deliver biggest gains

Dubai: Apartments close to the waterfront recorded the highest value gains in Abu Dhabi, especially those at Al Raha Beach and on Al Saadiyat Island.

Al Raha Beach homes have seen a 11% price gain since first-half of 2024, while on Saadiyat Island, the increases have hit 10%.

"Both locations epitomise the prime beachfront living available in Abu Dhabi," says a new Knight Frank update on the emirate's residential real estate scene. "Al Raha Beach (is) also benefitting from its proximity to the leisure attractions of Yas Island."

A beachfront mansion on Saadiyat was just sold by Aldar for Dh400 million, making it among the priciest deals in the emirate. The demand patterns are such villa prices will continue to 'outperform', according to a senior Knight Frank official.

Recently, there was the initial releases of luxury homes on Fahid Island, with first-time investors in Abu Dhabi taking the primary role in those sales.

Lining up for Abu Dhabi's pricey homes

Around 40% of individuals with private wealth of between $1 million and $5 million are looking to spend up to $2 million on a home in Abu Dhabi, according to Knight Frank data.

In terms of budgets, around 40% of individuals with private wealth of between $1 million and US$ 5 million are looking to spend up to $2 million on a home in Abu Dhabi.

"Although a similar percentage of those worth more than $20 million are looking to spend over $80 million, unlike Dubai’s super-prime focus, the Abu Dhabi market is tilted more towards the lower to mid-range price bracket," the report adds.

Demand is especially strong among those worth US$ 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 US$ 50 million are looking to purchase a home in Abu Dhabi. 

 And that's 'simply because there are not that many villas coming through', said Faisal Durrani, Head of Research - MENA at Knight Frank.

"When you overlay average prices for villas which stand at around Dh1,100 psf - compared to double that level in Dubai - it is easy to understand why some buyers view Abu Dhabi as better value for money, which for some also offers a more family-friendly lifestyle.”

Knight Frank is tracking 33,074 homes that are under construction and scheduled for delivery by 2029. Apartments are 62% of this supply pipeline. 

Yas Island is the top location for new supply 'by some margin, with more than 8,000 units in the pipeline'.

It is followed by about 3,000 units planned in the Al Shamkha residential district. "New branded residences developed by Aldar for Mandarin Oriental and Nobu bolster the pipeline for Saadiyat Island," the report adds.