Bayut & dubizzle - Abu Dhabi - Sales and Rental Market Report for H1 2022: Property sales prices continue on upward trajectory while the rental market stays competitive

Bayut and dubizzle, the UAE’s powerhouse property listing portals, have released their Abu Dhabi property market reports for H1 2022. The data from these leading portals has revealed that sales prices for properties in the capital have recorded an upward trajectory, whereas rental costs have generally decreased across prominent areas in the emirate. 

• According to Bayut & dubizzle’s H1 2022 property market reports, the sales prices for residential properties in Abu Dhabi have risen by 1% to 14% in the affordable segment, whereas those in the luxury segment have experienced surges of 1% to 8%.
• Potential investors and buyers have shown an inclination toward family-friendly suburbs like Al Ghadeer and Al Reef, while those interested in luxury apartments have mostly gravitated towards Al Reem Island, Yas Island and Saadiyat Island. 
• Al Reef has continued to be the top choice for affordable villa sales, while waterfront communities such as Saadiyat Island, Yas Island and Al Raha Gardens have been popular with High-Net-Worth (HNW) buyers.
• Budget-conscious tenants have focused their searches on established neighbourhoods, such as Khalifa City A and Al Khalidiyah to rent apartments. On the other hand, waterfront districts like Al Reem Island and Al Raha Beach have remained popular for luxury apartment rentals. 
• Mohammed Bin Zayed City has retained its standing as the most popular area to rent budget-friendly villas in Abu Dhabi, whereas Al Mushrif has emerged as the most popular choice for luxury villa rentals. 

Properties For Sale In Abu Dhabi

Villas:  

Saadiyat Island attracted the highest buyer interest for upscale villas in Abu Dhabi.

• The average price-per-square-foot for villas in Saadiyat Island has increased by 7.8%, going from AED 1,440  in H2 2021 to AED 1,554 in H1 2022, indicating a healthy demand for waterfront properties. 
• On the other hand, villas in Yas Island have reported a 3.1% appreciation in average sales price-per-square-foot, which averaged at AED 1,147 in H1 2022. 
• Al Raha Gardens has seen its price-per-square-foot for villas decrease slightly by under 1%, to stand at AED 809 in H1 2022.

As per the combined data released by Bayut & dubizzle, Al Reef has remained the most popular area for affordable villas on sale during the first six months of 2022. 
 

• The average sales price-per-square-foot for villas for sale in Al Reef has witnessed an increase of 1.2% during H1 2022, going from AED 684 to AED 693. 
• Other family-oriented areas like Khalifa City A, Hydra Village, Al Ghadeer and Mohammed Bin Zayed City have also continued to attract prospective buyers in the capital. 

Apartments: 

Prospective investors and buyers have shown a strong preference for waterfront and island communities to rent upscale flats in Abu Dhabi.

• Al Reem Island has been the hotspot for luxury apartment buyers in Abu Dhabi. The apartments in Al Reem Island have reported a slight uptick of 1% in the price-per-square-foot, which averaged at AED 1,004 in H1 2022.
• Alternatively, areas such as Yas Island, Al Raha Beach and Saadiyat Island have also appealed to high-net-worth buyers and investors. The average sales price-per-square-foot in these areas have appreciated by up to 7% in H1 2022.

Prospective investors and buyers have been inclined towards suburban neighbourhoods when it comes to affordable apartments in Abu Dhabi. 

• Al Ghadeer has been the top choice for investors interested in flats in the budget category. The price-per-square-foot for flats in Al Ghadeer has marginally increased by 0.2% to stand at AED 711 in H1 2022.
• Al Reef has also attracted prospective buyers during H1 2022. The average price-per-square-foot for flats in Al Reef witnessed an uptick of 14%, averaging at AED 760. This rise in prices could be attributed to landlords capitalising on the healthy demand for this popular district. 
• Apartments in Masdar City have also recorded a 7.29% appreciation in sales price-per-square-foot, to average at AED 1,248.
• The sales price-per-square-foot for flats in Baniyas has marginally increased by 0.69% to average at AED 748 in H1 2022.

Rental Yields in Abu Dhabi 

• Masdar City has reported the highest projected ROI of 7.17% for affordable apartments, based on rental yields. Al Reem Island has also offered an impressive yield of 6.68% for luxury apartments.
• Hydra Village has emerged with the highest ROI of 6.8% for affordable ready villas, while Al Raha Gardens has yielded a healthy ROI of 5.96% for luxury houses in the capital based on expected rental returns.

Off Plan Projects in Abu Dhabi 

• When it comes to the off-plan apartment project, Diva in Yas Island has continued to be the top choice in H1 2022, while Water’s Edge has appealed most to investors and buyers in the luxury segment. 
• Investors with a smaller budget have gravitated towards Noya in Yas Island to purchase affordable villas in Abu Dhabi, while Yas Acres has been a popular choice for high-income investors.

Properties For Rent 

Villas:  

Based on the collective price trends observed on Bayut & dubizzle, Mohammed Bin Zayed City (MBZ) has been a tenant favourite for affordable villa rentals in Abu Dhabi.

• The asking rents in MBZ City have seen fluctuations of 1% to 11%. The price for 3-bed house rentals decreased to AED 86k in H1 2022. The rental costs for 4-bed houses have remained unchanged at AED 128k, whereas the average price for 5-bed villas for rent have increased to AED 147k on average. 
• Khalifa City A, Al Reef, Shakhbout City (Khalifa City B) and Al Shamkha South have also been popular choices for potential tenants. These areas have recorded increases of up to 7% in average annual rents during the first six months of this year.

On the luxury front, Al Mushrif has been the most sought-after area, experiencing moderate surges  of up to 4% in rental costs.

• The asking rents for 4-bed villas in Al Mushrif have averaged at AED 175k, whereas 5-bed houses have been priced at AED 195k. The 6-bed houses have become more affordable in H1 2022, averaging at AED 212k. 
• In addition to Al Mushrif, Al Bateen, Yas Island, Al Raha Gardens and Saadiyat Island have appealed to tenants in H1 2022. Rental costs in these neighbourhoods generally increased by 2% to 9%. However, 5-bed homes for each recorded declines of up to 6% in asking rents.  

Apartments: 

In H1 2022, Khalifa City A has been the most searched area for affordable flats in Abu Dhabi. 

• The asking rents for studios and 1-bed flats in Khalifa City A have seen moderate increases of up to 4%, whereas the cost of 2-bed flats for rent have declined by 1.4%. The rents of studios in Khalifa City have averaged at AED 28k, whereas 1 and 2-bed flats have been priced at AED 42k and AED 59k respectively.
• Tenants looking for affordable accommodation have also drifted to older and affordable districts like Al Khalidiya, Al Muroor, Hamdan Street and Tourist Club Area, where average rents have experienced fluctuations of 1% to 5%. The highest movement has been recorded for studios in Hamdan Street where asking rents decreased by up to 13%.

Al Reem Island has remained a firm favourite for renting high-end apartments in H1 2022, showing a moderate growth of up to 3.5% in asking rents. 

• The average rents for flats in Al Reem Island have increased across the board, with 1-bed units averaging at AED 59k, 2-bed flats at AED 87k and 3-bed apartments for AED 128k.
• Apart from Al Reem Island, tenants have favoured areas like Al Raha Beach, Corniche Area, Yas Island and Corniche Road. Among these districts, Corniche Area has shown the most significant decline of up to 11%, with properties in Al Jowhara Tower, Nation Towers and Meera Time Towers in particular being listed at lower price points.

Commenting on the strong sales market in the capital, CEO of Bayut & dubizzle and Head of EMPG MENA, Haider Khan said: 

The Abu Dhabi market has continued to build on its strong foundations, with drive towards building robust systems and processes. Not only has Abu Dhabi been repeatedly recognised as one of the safest and best cities to live in the world by various international bodies, including Numbeo, the transparency levels in the market have also improved considerably, leading to greater confidence from buyers and investors. Recently, Abu Dhabi’s real estate market has been recognised as one of the top global improvers in 2022 in the latest Global Real Estate Transparency Index (GRETI) by JLL International. 

This has been possible thanks to the government’s structured initiatives to increase efficiencies. The launch of the Dari platform, which includes sales and lease management and development and transaction databases, comes at the perfect time, as more global investors and local buyers are looking at the Abu Dhabi market, in light of recent changes to the Golden Visa and Green visa initiatives. We have seen a similar trend within Bayut as well, with close to 9M sessions over H1 2022, suggesting healthy interest in the emirate’s diverse inventory of properties.