_DESTINATION ABU DHABI – UNHWI REAL ESTATE SECTOR PREFERENCES

Of everyone we spoke to, nearly 74% are interested in making a real estate investment in Abu Dhabi, with the residential sector (24.5%) emerging as the most popular, closely followed by branded residences (14.2%) and the hospitality sector (11.5%).

Faisal Durrani May 26, 2023

RESIDENTIAL OFFERINGS CATCHING THE ATTENTION OF UHNWI

The attraction of the residential sector also rises with net worth. For instance, those with a personal value of more than US$ 10 million favour the residential sector (49%) and branded residential sector (42%) the most.

When asked about their preferred real estate sector in Abu Dhabi, respondents interested in purchasing for personal use in Dubai also named Abu Dhabi’s residential sector as their most preferred one, at 61%.

Geographically, East Asian respondents remain the most interested in the residential sector in Abu Dhabi. While just over half of respondents from other regions have expressed an interest in investing in Abu Dhabi, 89% of East Asia respondents are interested in investing. More specifically, at 57%, most respondents living in East Asia are attracted to Abu Dhabi’s residential offerings, with a further 49% keen on branded residences.

The apparent focus by developers on high-end residential developments such as those on Saadiyat Island is beginning to attract the attention of the international elite. Clearly, the fact that villas here trade for around AED 1,350 psf (US$ 370 psf), compared to more than AED 4,450 psf (US$ 1,215 psf) on Dubai’s Palm Jumeirah, will only help to heighten the appeal.

ABU DHABI ISLAND MOST SOUGHT AFTER

At 19%, Abu Dhabi Island is the most common choice for a property purchase in Abu Dhabi, followed by Al Reem Island at 13%.

When asked where in Abu Dhabi they would most likely make their property purchase, 26% of East Asian respondent’s name Abu Dhabi Island as their most preferred location in the emirate; with their second top choice being Saadiyat Island at 18%.

Separately, those interested in purchasing property for personal use are more likely to select Maryah Island (16%) than any other Abu Dhabi location. In contrast, those who would purchase for investment prefer Abu Dhabi Island for a property purchase at 25%.

BIG SPENDERS

When it comes to expected property purchase budgets, the vast majority (24%) are willing to spend between US$ 1-2 million, with 19% willing to commit US$ 2-5 million. A further 15% claim they will allocate over US$ 5 million on an acquisition in Abu Dhabi.

Overall, 58% of respondents are willing to allocate over US$ 1 million for a property in Abu Dhabi, with the average allocated budget being US$ 2.8 million.

76% of East Asian respondents will set aside over US$ 1 million, with almost 20% keen to spend over US$ 5 million.

And of those that visit Dubai frequently (> once a year), 50% are willing to allocate over US$ 2 million for a property in Abu Dhabi, with the average allocated budget being US$ 3.7 million.

The continued demonstration of how Dubai positively influences views and attitudes towards Abu Dhabi is an area of opportunity that we will revisit in our Opportunities chapter.