Property Prices Appreciate as the Capital Reopens for Tourists and Investors

Press release
Published November 11th, 2021 - 06:22 GMT
Property Prices Appreciate as the Capital Reopens for Tourists and Investors
Infographic - Abu Dhabi Q3 2021 Rental Market Report.
Highlights
Bayut & dubizzle, the UAE’s leading property portals, have rolled out their combined Abu Dhabi Property Market Report for Q3 2021

Bayut & dubizzle, the UAE’s leading property portals, have rolled out their combined Abu Dhabi Property Market Report for Q3 2021, revealing that the capital’s real estate sector has displayed sustained stability in rental prices, while the sales prices have appreciated across popular neighbourhoods. With travel restrictions easing in Abu Dhabi, the capital’s real estate market has also been on a steady upward trajectory in the latter half of the year based on the findings of this combined report generated by Bayut & dubizzle.

  • According to the Bayut & dubizzle Q3 2021 real estate market reports, sales prices for residential properties in Abu Dhabi have shown increases of up to 4%.
  • Potential investors searching for affordable apartments have preferred freehold suburban areas like Al Reef and Al Ghadeer, while investors keen on upscale properties have been more inclined towards apartments in waterfront communities such as Al Reem Island, Al Raha Beach and Yas Island.
  • Al Reef has also been the most sought-after area with investors keen on buying affordable villas in Abu Dhabi. Those looking for upscale properties have been most interested in the waterfront area of Saadiyat Island to buy villas in Q3 2021.
  • Tenants looking for affordable housing in Abu Dhabi have shown an interest towards Khalifa City A to rent apartments. On the other hand, waterfront areas such as Al Reem Island, Al Raha Beach and Corniche Area have retained their popularity among tenants looking to rent upscale flats in the capital.
  • Villa communities such as Mohammed Bin Zayed City and Khalifa City A have garnered the attention of tenants' interested in renting affordable houses in Abu Dhabi. When it comes to renting high-end villas, Al Bateen and Al Raha Gardens have emerged as the most attractive places in the third quarter of 2021.

Properties for sale in Abu Dhabi

Villas

Saadiyat Island has proven to be the most sought-after area with buyers keen on purchasing luxury villas in Abu Dhabi. This could be attributed to the growing demand for waterfront houses in the emirate.

  • The average price-per-square-foot for villas in Saadiyat Island has decreased marginally by 1%, from AED 1,396 in Q2 2021 to AED 1,382 in Q3 2021. 
  • Houses in Yas Island have seen a minor increase of under 1% in sales price-per-square-foot, averaging at AED 1,112 in Q3 2021.
  • Al Raha Gardens has also exhibited a moderate decrease of 2.8% in price-per-square-foot for villas, reducing from AED 833 in Q2 2021 to AED 809 in Q3 2021.

When it comes to affordable villas for sale, the freehold suburb of Al Reef has earned the top spot in the third quarter of 2021.

  • The average sales price-per-square-foot for villas for sale in Al Reef has shown an increase of 2%, rising from AED 671 in Q2 2021 to AED 685 in Q3 2021, reflecting growing popularity and demand for reasonably-priced villa communities.
  • Apart from these areas, suburban districts like Hydra Village, Khalifa City A and Shakhbout City (Khalifa City B) have been popular choices for investors interested in reasonably-priced villas in Abu Dhabi. 

Apartments

As far as luxury apartment sales are concerned, potential investors have been largely inclined towards island communities, with Al Reem Island being the most in-demand area

  • Prices for apartments in Al Reem Island have decreased marginally by less than 1% with the price-per-square-foot averaging at AED 1,000.
  • Al Raha Beach, Yas Island and Saadiyat Island have also garnered the interest of high-net-worth buyers, with the sales price-per-square-foot appreciating by up to 2%. 

For affordable apartments for sale in Abu Dhabi, prospective investors have shown an inclination towards family-friendly suburbs.

  • Al Reef has continued to appeal to investors on a smaller budget in Q3 2021. The community has reported a fairly stable sales price-per-square-foot, averaging at AED 673 for apartments.
  • Apartments in Al Ghadeer have also maintained their popularity, appreciating by under 2% to stand at AED 733 in the third quarter of 2021.
  • Masdar City has ranked third in the list of most popular areas to buy affordable flats in Abu Dhabi. The average price-per-square-foot of apartments in Masdar City has stayed affordable at AED 1,183, declining slightly by under 1%.

Rental Yields

  • Masdar City has offered the highest projected rental yields of 8.2% for affordable apartments in Abu Dhabi. For luxury apartments, Yas Island has offered healthy rental yields of 7.36%.
  • Shakhbout City (Khalifa City B) has reported an ROI of 8.4% for buying affordable villas in Abu Dhabi. For luxury villas, Al Raha Gardens has delivered the highest rental yield of up to 6%.

Off Plan Projects

  • As per the combined data released by Bayut & dubizzle, Diva has been the most popular project for affordable off-plan apartments in Q3 2021, whereas Water’s Edge in Yas Island has attracted buyers interested in the luxury segment.
  • For off-plan villa projects in Abu Dhabi, the competitively-priced houses in Noya have appealed most to the buyers while Yas Acres has captured the attention of investors searching for upscale houses in the capital.

Properties for rent

Villas

As per the trends observed by Bayut & dubizzle, Mohammed Bin Zayed City has continued to be the preferred choice for those in search of affordable villas for rent in Abu Dhabi.

  • The asking rents of houses in Mohammed Bin Zayed City (MBZ) have seen minor fluctuations, with 4 and 5-bed units becoming more affordable by up to 3%, averaging at AED 125k and AED 145k, respectively. The rent for 3-bed homes increased by 14% to stand at AED 98k in Q3 2021, perhaps since the smaller units are particularly sought after by residents in the capital looking to upgrade from apartments. 
  • Khalifa City A, Al Reef, Shakhbout City (Khalifa City B) and Al Muroor have also garnered attention from tenants. These areas have experienced upticks of up to 17% in asking rents for affordable villas.

For luxury houses for rent in Abu Dhabi, Al Bateen has continued to be the most popular choice among tenants, with rental costs increasing by up to 13%.

  • The average rent for 4-bed villas in Al Bateen has remained steady at AED 201k whereas 5 and 6-bed villa rentals have increased to AED 230k and AED 234k respectively, in Q3 2021.
  • Al Raha Gardens, Yas Island and Saadiyat Island have also remained firm favourites for tenants. In the third quarter of 2021, these areas have seen moderate appreciation of up to 12% in rental costs.

Apartments

In Q3 2021, Khalifa City A has been the most searched for area by tenants looking for affordable apartments in Abu Dhabi. 

  • The asking rents of Khalifa City A have seen minor fluctuations across the board, averaging at AED 27k for studios, AED 42k for 1-bed and AED 62k for 2-bed units.
  • Tenants searching for affordable apartments in Abu Dhabi have also preferred family-friendly districts such as Al Khalidiyah, Al Muroor, Hamdan Street and Tourist Club Area (TCA).
  • These neighbourhoods have seen minor increases of up to 2% in asking rents during the third quarter of 2021 in Abu Dhabi.

Based on data observed by Bayut & dubizzle, Al Reem Island has retained its popularity for luxury apartments for rent in Abu Dhabi with asking prices remaining largely stable across the board. 

  • The rental costs of 1 and 2-bed flats in Al Reem Island have averaged at AED 57k and AED 84k, whereas the rent for 3-bed flats has remained constant at AED 125k.
  • Al Raha Beach, Corniche Area, Corniche Road and Saadiyat Island have also gained traction from consumers in Q3 2021. These waterfront communities have seen marginal upticks of up to 10%, with 1-bed flats in Saadiyat Island appreciating significantly by 27% due to the influx of higher-priced inventory in the market. 

Commenting on the trends in the capital city’s real estate market, Haider Ali Khan, the CEO of Bayut & dubizzle and Head of EMPG MENA, said: “Over the last few years, and especially during the pandemic Abu Dhabi has really established itself as one of the most family friendly, safe and stable cities to live in the world. Now that the city is once again open to people from within the country and abroad, it’s not surprising to see prices appreciating in both the rental and sales markets in the capital. Besides the restriction-free mobility within and outside the borders of Abu Dhabi, there have been many reasons contributing to the upward price movements in the capital’s real estate market. The boom in the luxury segment in particular has remained consistent with consumers’ growing preference for larger, more private homes. Additionally, Abu Dhabi’s recent announcement to grant UAE golden visas to real estate investors has also added to the growing appeal of the capital’s real estate sector for both global and expat investors. We have noticed a steady interest in the Abu Dhabi property market from buyers and tenants with close to 3.5 Million sessions in the last quarter alone.”

 

Background Information

Bayut.com

Bayut.com is a pioneering combination of unbeatable UAE real estate database and an extremely user friendly outlook. Bayut.com is not just a UAE property portal; it can be used as a powerful tool to dig out your desired property, an unsurpassed real estate marketing channel for reaching out to millions of customers and a handy guide to assist in your property investment decisions. "Dubai real estate is Big and so is Bayut"

 

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