Abu Dhabi’s real estate landscape is poised for a significant transformation as high-net-worth individuals (HNWI) around the world are prepared to invest a staggering $ 408.3 million in residential properties in the UAE capital, according to a new report by global property consultancy Knight Frank.
This substantial influx of global private capital signals Abu Dhabi’s emergence as a prime destination for affluent investors.
The Knight Frank Destination Dubai report, now in its second annual edition, surveyed 317 HNWI, including 217 from around the world and 100 GCC-based expat HNWI.
Collectively, these respondents boast a net worth of $ 5.4 billion and own an impressive portfolio of 1,149 homes worldwide.
Faisal Durrani, Partner – Head of Research, MENA at Knight Frank, highlighted the significance of this trend. “This is a watershed moment for the city, which has often trailed Dubai in this area,” he said.
Abu Dhabi Attracts Wealthy Investors
According to the report, 23% of the surveyed HNWI expressed a desire to purchase real estate in Abu Dhabi, with this figure increasing to a remarkable 57% for those with a net worth exceeding $ 15 million.
Shehzad Jamal, Partner – Strategy & Consultancy, MEA at Knight Frank, attributed the appeal of Abu Dhabi to its relatively stable residential values over the past four years and the success of the ‘Visit Abu Dhabi’ campaign.
“Residential values in Abu Dhabi have remained relatively stable for the last four years, which has played a significant role in encouraging domestic buyers to transition from renting to owning,” Jamal explained.
“And with homes in Abu Dhabi trading for around AED 1,000 per square foot, they remain about one-third cheaper than Dubai, which is further adding to the appeal of home ownership in the city amongst domestic buyers.”
Regarding preferred locations within Abu Dhabi, the report identified Abu Dhabi Island (21%) and Saadiyat Island (16%) as the most sought-after destinations for HNWI real estate acquisitions.
Jamal noted the strong performance of villas on Saadiyat Island, with prices rising by 10% over the past 12 months.
Ras Al Khaimah Emerges as Other UAE Investment Hotspot
In addition to Abu Dhabi, the report also shed light on the growing interest in Ras Al Khaimah’s property market, with HNWI planning to spend an average of $ 2.9 million on a home in the emirate.
This figure, combined with the planned spending in Abu Dhabi, amounts to a staggering $ 796.8 million in potential investments across the two emirates.
The Knight Frank Destination Dubai report’s findings highlight Abu Dhabi’s rising prominence as an investment destination for HNWI globally.
With substantial capital inflows on the horizon, the UAE capital is poised to witness a transformative real estate boom, further solidifying its position as a key player in the region’s dynamic property market.
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