bayut & dubizzle : Q3 property report and infographics for Abu Dhabi

Bayut and dubizzle, the UAE's leading property listing portals, have rolled out their Abu Dhabi real estate market reports for Q3 2022. As per the collective data extracted from these platforms, property sales prices in Abu Dhabi have maintained a steady upward trajectory, whereas rental costs have remained largely stable across prominent areas in the capital.

• As per Bayut & dubizzle's Q3 2022 property market report, the sales prices for properties in Abu Dhabi in the affordable segment have increased by up to 3%, whereas those in the upscale areas have recorded surges of up to 7%.
• Potential investors have been inclined towards well-established areas like Al Reef and Al Ghadeer to buy affordable flats, whereas those in pursuit of luxury apartments have focused on Al Reem Island and Al Raha Beach.
• Al Reef has remained the top preference for investors to buy affordable villas in Abu Dhabi, whereas seafront communities such as Saadiyat Island, Yas Island and Al Raha Gardens have appealed to High-Net-Worth (HNW) buyers.
• Tenants in search of reasonably-priced apartments have favoured well-established neighbourhoods like Khalifa City A and Al Khalidiyah in Abu Dhabi. The waterfront areas of Al Reem Island and Al Raha Beach have remained popular for luxury apartment rentals. 
• Mohammed Bin Zayed City has continued to be the most popular area to rent affordable houses in Abu Dhabi, whereas Al Mushrif has gained maximum consumer interest for luxury villa rentals. 

Properties For Sale In Abu Dhabi

Villas:  

Saadiyat Island has emerged as the most popular area to purchase upscale villas in Abu Dhabi.

• The average price-per-square-foot for houses in Saadiyat Island has appreciated by 4.12%, increasing from AED 1,581 in Q2 2022 to AED 1,646 in Q3 2022, pointing towards a steady demand for waterfront properties. 
• Similarly, villas in Yas Island have averaged at AED 1,208, following a 6.54% surge in average sales price-per-square-foot from Q2 2022.
• Al Raha Gardens has recorded an increase in its price-per-square-foot for villas by under 2%, to stand at AED 829 in Q3 2022.

As per the data accumulated by Bayut & dubizzle, Al Reef has remained the most popular area for the sale of affordable villas during the past three months. 

• The average sales price-per-square-foot for villas for sale in Al Reef has increased by 0.48% during Q3 2022, surging to AED 708. 
• Other popular family-friendly areas like Hydra Village and Al Ghadeer have reported increases of up to 3% in average price-per-square-foot, whereas villas in Mohammed Bin Zayed City and  Khalifa City A, have become more affordable by up to 6%.

Apartments: 

Prospective investors and homeowners have preferred waterfront and island communities to rent upscale flats in Abu Dhabi.

• Al Reem Island has been the most popular area to buy luxury apartments in Abu Dhabi. The apartments in Al Reem Island have reported an uptick of 1.07% in the price-per-square-foot, averaging at AED 1,024 in Q3 2022.
• Additionally, areas like Al Raha Beach, Yas Island and Saadiyat Island have garnered the attention of potential buyers and investors. The average sales price-per-square-foot in these areas have increased by up to 6% in Q3 2022.

Prospective investors and buyers have shown interest in suburban neighbourhoods when it comes to renting reasonably-priced apartments in Abu Dhabi. 

• Al Reef has emerged as the top choice for investors interested in buying affordable flats in Abu Dhabi. The price-per-square-foot for flats in Al Reef has declined by 1.75% to stand at AED 678 in Q3 2022.
• Al Ghadeer has been the second most popular choice for prospective buyers during the past three months. The average price-per-square-foot for apartments in Al Ghadeer has recorded a decrease of 1.33%, averaging at AED 706. 
• The average sales price-per-square-foot for flats in Baniyas has marginally increased by 0.4% to stand at AED 747 in Q3 2022.
• Apartments in Masdar City have reported a minor uptick of 0.15% in average sales price-per-square-foot, to stand at AED 1,243.

Rental Yields in Abu Dhabi 

• Al Reef has recorded the highest projected ROI of 7.75% for budget-friendly apartments. Al Reem Island, on the other hand, has offered healthy rental returns of 6.48% for upscale apartments.
• Hydra Village has offered the highest projected ROI of 6.64% for affordable houses, whereas the homes in Al Raha Gardens have averaged at a healthy ROI of 6.13% for luxury houses in the capital based on expected rental returns.

Off Plan Projects in Abu Dhabi 

• Those looking for off-plan apartments in Abu Dhabi have been largely inclined towards Diva in Yas Island in the affordable category, whereas Yas Beach Residences in the same community has garnered maximum consumer attention in the luxury sector.
• When it comes to off-plan villas, Noya in Yas Island has continued to be the top choice for buyers in the affordable sector, whereas Yas Acres in Yas Island has remained a favourite among high-income investors.

Properties For Rent 

Villas:  

According to the price trends observed on Bayut & dubizzle, Mohammed Bin Zayed City (MBZ) has been highly sought-after for renting affordable villas in Abu Dhabi.

• The asking rents in MBZ City have seen fluctuations of up to 3%. The price for 3-bed and 4-bed houses have decreased, to stand at AED 87k and AED 130k, respectively. However, the rental costs for 5-bed houses have remained unchanged at AED 148k in Q3 2022.
• Khalifa City A, Al Reef, Al Muroor and Shakhbout City (Khalifa City B) have also been favourites among potential tenants. The rents in these areas have mostly remained stable. However, rental costs for 3-bed villas in Khalifa City A have recorded a decrease of 3.4%, standing at AED 135k in Q3 2022. On the other hand, the average rent for 3-bed villas in Shakbout City (Khalifa City B) has increased by up to 5% to stand at AED 115k in the third quarter of 2022.

On the luxury front, Al Mushrif has been the most-searched-for area to rent upscale villas in Abu Dhabi.

• The average rents for 4-bed villas in Al Mushrif have decreased by under 1% to average at AED 179k, whereas 5-bed houses have been priced at AED 227k, after an increase of up to 10.1%. On the other hand, 6-bed houses have become more expensive by 8.22%, averaging at AED 234k in Q3 2022. 
• Apart from Al Mushrif, Yas Island, Al Bateen, Al Raha Gardens and Al Raha Beach have appealed to tenants in Q3 2022. Rental costs in these areas have generally increased by around 1% to 11%. However, 5-bed homes in Al Bateen have shown decreases of up to 7.23% in asking rents. This could be attributed to landlords listing their properties at lower-price points to draw the attention of tenants.

Apartments: 

Khalifa City A has been the most popular area for affordable flats in Abu Dhabi in Q3 2022. 

• The average rents for studios in Khalifa City A have seen no change, whereas the rent of 1 and 2-bed flats have decreased by up to 3%. The asking rents of studios in Khalifa City A have averaged at AED 28k, whereas 1 and 2-bed flats have been priced at AED 41k and AED 60k, respectively.
• Those looking for affordable apartments in Abu Dhabi have also gravitated towards older, family-friendly districts such as Al Khalidiya, Al Muroor, Hamdan Street and Tourist Club Area. The average rents in these areas have largely remained unchanged, with price decreases recorded for certain bed types in Hamdan Street and Tourist Club Area.

Tenants looking for high-end apartment rentals in Q3 2022 have largely focused on Al Reem Island. 

• The average rents for flats in Al Reem Island have decreased by up to 1.25% for 1 and 2-bed apartments, with the cost of 3-bed apartments remaining unchanged in Q3 2022. The rent of 1-bed units in Al Reem Island has averaged at AED 58k, whereas 2 and 3-bed flats in the area have been priced for AED 86k and AED 127k, respectively.
• Aside from Al Reem Island, tenants have preferred areas like Al Raha Beach, Corniche Area, Yas Island and Corniche Road, which have mostly recorded increases of 2% to 9%. The 1-bed and 2-bed flats in Yas Island, however, have experienced decreases of up to 11%.

Commenting on the trends, Haider Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said; 

“Abu Dhabi has gone from strength to strength in the past few years, thanks to its sustained popularity as a safe and secure, family-friendly destination. Investments in the capital have also been on the rise with many entrepreneurs taking advantage of the revised Golden Visa requirements. To fuel the growing demand from both local and global investors and homeseekers as a result of the stability of the emirate and the appeal of the revised Golden Visa schemes, leading developers like Aldar have launched several projects including a multi billion dollar project in Jubail Island. Traffic has also been on a steady upward trend on both Bayut & dubizzle, with over 10M visits in the last 10 months alone. The economy is also looking strong in light of seasoned entities like FAB, ADIB, and ADCB closing higher in mid October as per reports on WAM.”