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Top 5 areas to buy a luxury apartment in Abu Dhabi

Al Reem Island emerged as the most popular area for buying luxury apartments in Abu Dhabi in 2023, offering a projected ROI of 6.54%

Top 5 areas to buy a luxury apartment in Abu Dhabi

The real estate market in Abu Dhabi has experienced substantial growth in 2023, with prices and return on investment (ROI) for apartments and villas increasing. This can be attributed to the Abu Dhabi government’s initiatives, such as allowing foreign ownership in certain properties, establishing regulatory bodies to protect investors, and implementing measures to attract investment. These efforts have created a favourable investment climate in the capital city.

In 2023, prices for luxury apartments and villas in Abu Dhabi also surged due to the availability of essential facilities, recreational amenities, and attractive investment opportunities. This led to a significant rise in demand for luxury properties in the capital city.

Let’s delve into the popular areas to buy luxury apartments in Abu Dhabi.

Al Reem

According to search trends on Dubizzle, Al Reem has emerged as the most popular area for buying luxury apartments in Abu Dhabi. Boasting numerous waterfront developments, the island offers residents a contemporary lifestyle and breathtaking views of Marina Bay and the Arabian Gulf. The annual average asking prices for apartments on Al Reem Island have reached $340,200 (AED 1.26M), accompanied by an ROI of 6.54%.

The price per square foot for apartments in Al Reem Island has averaged $287 (AED 1,064) after a 3.34% increase in 2023. The average asking prices for studio, 1 and 2-bedroom apartments for sale in Al Reem Island have amounted to $157,950 (AED 585k), $232,260 (858k) and $383,400 (AED 1.42M), respectively. As per DARI – the capital’s real estate ecosystem, ready apartments in Al Reem Island have recorded sales transactions worth $337,500,000 (AED 1.25B) in 2023.

Yas Island

Yas Island has emerged as another sought-after location for purchasing luxury apartments in Abu Dhabi. Boasting an average price of $410,840 (AED 1.52M) and an ROI of 6.20%, Yas Island is a vibrant hub teeming with stylish restaurants, clubs and hotels. These compelling factors have garnered significant investor interest, given the area’s perceived long-term potential.

With a 6.7% increase, the price per square foot for apartments in Yas Island in 2023 has averaged $378 (AED 1,400). The price for studio apartments for sale in Yas Island in 2023 has averaged $202,500 (AED 750k), while the average prices for 1- and 2-bedroom apartments have been recorded as $289,900 (AED 1.07M) and $491,400 (AED 1.82M), respectively. As per DARI Data, the sales transaction value for completed apartments in Yas Island has accrued to $89,640,000 (AED 332M) in 2023.

Banyan Tree

Al Raha Beach

According to Dubizzle search trends, Al Raha Beach, ranked third among popular areas to buy luxury apartments in Abu Dhabi. Boasting an average price of $450,900 (AED 1.67M) and a 5.78% ROI, the vibrant community provides an exceptional experience of luxurious waterfront living. Following a slight increase of 2.10% from the previous year, the price per square foot for buying apartments in Al Raha Beach has averaged $337 (AED 1,251) in 2023.  

The sales price for studio, 1- and 2-bedroom apartments in Al Raha Beach has averaged $246,510 (AED 913k), $315,900 (AED 1.17M) and $459,000 (AED 1.7M).

As for the fourth and fifth ranks, Saadiyat Island and Al Maryah Island have garnered interest among luxury apartment buyers. The luxury apartments for sale in Saadiyat Island recorded an average price of $961,200 (AED 3.56M) and an ROI of 3.63%.

Meanwhile, Al Maryah Island has recorded the highest ROI of 10.21% among the top areas for buying apartments in the capital in 2023. The asking price for buying apartments in the area has averaged $299,700 (AED 1.11M).