Bayut & dubizzle’s Abu Dhabi Annual Market report for properties for sale in 2020
- Affordable Apartment Sales
- Luxury Apartment Sales
- Affordable Villa Sales
- Luxury Villa Sales
- Top Off-Plan Projects
As we bid adieu to one of the most challenging years in human history, it’s time for us to look back on how the capital city’s property market performed in the aftermath of the COVID-19 pandemic. While there were some initial slowdowns caused by mobility restrictions, Abu Dhabi’s property prices over the course of the year have reflected the market’s ability to adapt to the ever-changing situations presented by the global COVD-19 pandemic.
Following the promising signs of recovery in Q3 2020, the Abu Dhabi real estate market for sale of property has remained predominantly buyer-friendly, with sellers quoting competitive prices and developers introducing attractive incentives for prospective homebuyers and investors.
For a detailed understanding of how the ongoing situation has affected the residential property sector, Bayut & dubizzle’s combined annual sales report examines the changes in Abu Dhabi property prices for 2020.
For an accurate representation of Abu Dhabi property prices, our annual sales market report compares the average price-per-square-foot for an area. Please note that these prices are subject to change based on multiple factors including amenities available, the developer involved in the project, location and other key factors.
We have also further segmented the popular areas for buying apartments and villas into ‘Affordable’ and ‘Luxury’ to offer a more tailored view of the Abu Dhabi real estate market in 2020.
TOP NEIGHBOURHOODS IN ABU DHABI ACCORDING TO TRENDS ON BAYUT & DUBIZZLE
For the Abu Dhabi annual sale market report, our data experts have compared the Abu Dhabi 2020 real estate prices for listings on Bayut & dubizzle (excluding room share) against those from 2019, to discover common consumer trends in Abu Dhabi’s real estate market.
Property search trends on Bayut & dubizzle show that investors and homebuyers are keener on integrated community developments such as Al Reem Island, Yas Island and Saadiyat Island in the Abu Dhabi real estate market in 2020.
Well-established suburbs like Al Reef, Khalifa City A and Masdar City have also gained traction as popular choices for investors in 2020.
The government’s timely measures to ensure that the market is not saturated with oversupply has also resulted in the secondary market holding steady throughout the course of 2020. While property investments have been on the rise, specifically in the last quarter of 2020, it has also been widely speculated that investors and buyers have been adopting a more long-term prerogative when it comes to real estate returns.
AL REEF RANKS FIRST FOR BUYING AFFORDABLE APARTMENTS
PROPERTY PRICES IN ABU DHABI TO BUY AFFORDABLE FLATS
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019 | STUDIO | 1-BED | 2-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 8.4% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| STUDIO
| 1-BED
| 2-BED
|
| Masdar City | ROI 7.5% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| STUDIO
| 1-BED
| 2-BED
|
| Al Ghadeer | ROI 7.6% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| STUDIO
| 1-BED
| 2-BED
|
Al Reef emerged as the top choice for buyers and investors in search of affordable apartments for sale in Abu Dhabi. Set on the outskirts of Abu Dhabi, the area is ideal for daily commutes to Dubai. As per our Abu Dhabi real estate market analysis for 2020, the average sale-price-per-square-foot for flats in Al Reef has reduced slightly by 3.8% from AED 679 to AED 653.
The asking price for apartments for sale in Al Reef has also decreased from AED 482k in 2019 to AED 456k for studios. Prices for 1-bed flats in Al Reef have reduced from AED 639k to AED 606k, whereas the price for 2-bed Al Reef apartments for sale has remained constant at AED 800k.
Masdar City has also stayed popular among investors looking for apartments for sale in Abu Dhabi in the affordable category. Located right next to the Abu Dhabi International Airport, Masdar City is a sustainable urban community that offers good connectivity and ample amenities.
In 2020, the price-per-square-foot for apartments for sale in Masdar City have averaged AED 1,073 after experiencing moderate declines of 4.4%. Investors and buyers can easily get a studio flat in Masdar City for an average of AED 517k, 1-bed apartments for AED 762k and 2-bed flats for AED 1.15M.
The suburban Al Ghadeer district also garnered interest from buyers for affordable properties in Abu Dhabi. This neighbourhood has experienced a 10.6% reduction in average price-per-square-foot during 2020, with studio flats priced at AED 345k, while the 1-bed and 2-bed flats have average sale prices of AED 496k and AED 739k respectively. As a more recently developed suburb, prices are still stabilising in this district, where regular handovers have also been happening across the year. This has also resulted in owners of older units offering more competitive prices to capitalise on the demand.
AL REEF DOWNTOWN COMMUNITY IS THE MOST POPULAR WITH BUYERS FOR APARTMENTS IN AL REEF
Al Reef Downtown features 46 apartment buildings with flats for sale in Al Reef. This mixed-use sub-community is popular for its spacious apartment units that come in studio, 1, 2 and 3-bed configurations. Those interested in buying apartments in Al Reef can expect to pay a starting price of AED 445k based on the listings on Bayut.
AL REEF OFFERS THE BEST RENTAL YIELDS IN ABU DHABI FOR AFFORDABLE APARTMENTS
Investors looking for affordable apartments with high rental yields will be happy to note that the competitively priced area of Al Reef has also offered a healthy ROI of 8.4% in 2020.
Besides Al Reef, flats in Al Ghadeer have projected rental yields of 7.6%, whereas the apartments in Masdar City can earn you an ROI of 7.5%.
ISLAND COMMUNITIES GARNER THE MOST INTEREST FOR LUXURY APARTMENT SALES IN ABU DHABI
MOST POPULAR AREAS TO BUY LUXURY APARTMENTS IN ABU DHABI
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019 | 1-BED | 2-BED | 3-BED |
|---|---|---|---|---|---|
| Al Reem Island | ROI 7.1% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
| Al Raha Beach | ROI 6.8% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
| Saadiyat Island | ROI 5.9% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
| Yas Island | ROI 6.9% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
The analysis of Abu Dhabi property price trends for 2020 reveals that Al Reem Island has retained its spot as the most popular area for buying luxury apartments in the capital. Unsurprisingly, properties in Al Reem Island have continued to be in-demand for their excellent connectivity, lavish design, upscale amenities and proximity to both commercial and leisure hubs in Abu Dhabi.
The average price-per-square-foot to buy apartments in Al Reem Island has experienced a moderate 5.3% decline, going from AED 1,024 to AED 969 in 2020. The asking price for apartments for sale in Al Reem Island have also witnessed reductions across the board during 2020 with 1-bed apartments going from AED 838k to AED 795k, and 2-bed flats for sale reducing to AED 1.25M from AED 1.35M. The price for 3-bedroom flats for sale in Al Reem Island has averaged at AED 1.89M in 2020 when compared to AED 1.98M in 2019.
Ranking second in popularity for expensive apartments in Abu Dhabi, the price per square foot for properties in Al Raha Beach have averaged at AED 1,171 after a 4.9% decrease from 2019. The asking price for luxury apartments for sale in Al Raha Beach has averaged at AED 1.11M for 1-bed, AED 1.64M for 2-bed and AED 2.48M for 3-bed units.
Other areas that have attracted investors for luxury apartments for sale in Abu Dhabi include Saadiyat Island and Yas Island. These upscale island districts witnessed a general reduction in average price-per-square-foot between 2% to 8%.
SHAMS ABU DHABI IS THE TOP CHOICE FOR BUYING APARTMENTS IN AL REEM ISLAND
Based on Abu Dhabi real estate trends and property prices in 2020, Shams Abu Dhabi is the most searched for area among prospective home buyers and investors looking for apartments in Al Reem Island.
This sub-community offers several high-end residential towers offering studios, 1, 2 and 3-bed apartments. To buy apartments in Shams Abu Dhabi, investors can expect to pay a starting price of AED 570k, as per the current listings on Bayut.
Other prominent sub-communities for buying apartments in Al Reem Island, Abu Dhabi include Marina Square, City of Lights, Shams Gate District and Tamouh.
AL REEM ISLAND OFFERS THE BEST ROI IN ABU DHABI FOR LUXURY APARTMENTS
Based on Bayut & dubizzle’s combined report, Al Reem Island with an ROI of 7.1% remains an investor favourite for buying luxury apartments in Abu Dhabi. However, this is the average ROI for the area and can vary subject to the location, developer, type of unit and the amenities offered with it.
Other neighbourhoods that offer lucrative returns for investors include Yas Island and Al Raha Beach with average ROIs of 6.9% and 6.8% respectively.
AL REEF RANKS FIRST FOR BUYING AFFORDABLE VILLAS IN ABU DHABI
ABU DHABI PROPERTY PRICES FOR BUYING AFFORDABLE VILLAS
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019 | 3-BED | 4-BED | 5-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 7.1% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
| Khalifa City A | ROI 5.6% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
| Shakhbout City (Khalifa City B) | ROI 8.2% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
| Hydra Village | ROI 7.4% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
| Mohammed Bin Zayed City | ROI 8.7% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
Moving on to villas for sale in Abu Dhabi, our analysis of real estate trends in the capital has revealed that Al Reef remains the first choice for buyers and investors searching for affordable villas in 2020. The suburban neighbourhood is popular for its reasonably-priced properties and proximity to Dubai.
In 2020, the average sales-price-per-square-foot for villas in Al Reef averaged has been a competitive 608, showing a minor decrease of 2.7% from the prices in 2019. The asking prices for villas for sale in Al Reef have also continued to be in line with the overall price change, especially for smaller units that have averaged at AED 1.37M for 3-bed and 1.87M for 4-bed villas. The 5-bed villas, however, have experienced a marginal uptick in prices, averaging at AED 2.19M, which is consistent with the new trends of buyers seeking bigger homes and better amenities in the aftermath of the pandemic.
Based on the analysis of Abu Dhabi property prices, the villas for sale in Khalifa City A have also attracted home buyers with tighter budgets. The price-per-square-foot for homes in Khalifa City A has seen a 13.6% decline from 2019, with prices for 3-bed homes averaging at AED 3.44M. The average asking sale price during 2020 for 4-bed and 5-bed villas in Khalifa City A has averaged at AED 5.27M and AED 6.56M respectively.
Other than the aforementioned communities, property trends in Abu Dhabi have shown that home buyers are interested in suburban areas such as Shakhbout City (Khalifa City B), Hydra Village and Mohammed Bin Zayed City to buy affordable villas in Abu Dhabi. These communities have offered houses for sale in Abu Dhabi for average price-per-square-foot ranging between AED 442 to AED 475.
AL REEF VILLAS IS THE MOST-SEARCHED-FOR COMMUNITY IN AL REEF
Homes in Al Reef can be found in the Al Reef Villas community that features four different villa clusters, themed in Arabian, Mediterranean, Contemporary and Desert styles.
The Arabian style cluster has attracted the most investor interest, with properties priced as low as AED 1.5M. Villas for sale in Arabian Style cluster come in 2, 3, 4 and 5-bed configurations.
Other clusters which have also received a fair share of interest from property seekers include the Mediterranean, Desert and Contemporary Villas.
MOHAMMED BIN ZAYED CITY OFFERS THE HIGHEST ROI IN ABU DHABI FOR AFFORDABLE VILLAS
Investors looking for affordable villas with high rental yields should note that MBZ City has offered excellent projected returns of 8.7% on average in 2020.
Affordable villas in Shakhbout City (Khalifa City B) and Hydra Village have also offered healthy ROIs of 8.2% and 7.4% respectively.
SAADIYAT ISLAND IS THE MOST POPULAR CHOICE TO BUY LUXURY VILLAS IN ABU DHABI
ABU DHABI PROPERTY PRICES FOR LUXURY VILLAS
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019 | 4-BED | 5-BED | 6-BED |
|---|---|---|---|---|---|
| Saadiyat Island | ROI 4.6% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 4-BED
| 5-BED
| 6-BED
|
| Yas Island | ROI 5.2% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 4-BED
| 5-BED
| 6-BED
|
| Al Raha Gardens | ROI 6.0% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 4-BED
| 5-BED
| 6-BED
|
According to property price trends in Abu Dhabi, Saadiyat Island has emerged as the top choice for home buyers looking for luxury villas in the capital.
The price-per-square-foot for high-end villas for sale in Saadiyat Island has also become more attractive, going from AED 1,427 in 2019 to AED 1,342 in 2020. On average, the 4-bed villas in Saadiyat Island are priced at AED 7.2M, whereas the priced for 5-bed and 6-bed homes average at AED 11M and AED 14.8M respectively.
Yas Island has been the second choice for investors when it comes to high-end villas in Abu Dhabi. Contrary to the other price trends in Abu Dhabi, the sale price-per-square-foot for luxury villas in Yas Island saw an uptick of 7%. Investors can expect to pay AED 4.3M for 4-bed, AED 5.2M for 5-bed and AED 8.5M for 6-bed villas in Yas Island. This is not surprising considering the handover of several luxury off-plan units in the waterfront community, which has predictably enhanced the overall sentiment in the market towards the island community.
Home buyers have also shown interest in the luxury villas in Al Raha Gardens, where the price-per-square-foot remained unchanged at AED 772. The 4-bed villas in Al Raha Gardens are priced at AED 2.8M, whereas the average price of 5 and 6-bed villas is AED 3.8M and AED 4.7M respectively.
HIDD AL SAADIYAT RANKS FIRST FOR BUYING VILLAS IN SAADIYAT ISLAND
Investors and buyers searching for luxury villas in Saadiyat Island have shown an inclination towards the villas for sale in Hidd Al Saadiyat. These lavish villas in Hidd Al Saadiyat come in 4, 5 and 6 bedroom layouts, with prices starting from AED 6.2M.
Other areas of interest for investors and homebuyers in search of expensive villas on Saadiyat Island have included Saadiyat Beach, Jawaher Saadiyat, Saadiyat Cultural District and Saadiyat Reserve.
AL RAHA GARDENS OFFERS THE HIGHEST RENTAL RETURNS FOR LUXURY VILLAS IN ABU DHABI
Al Raha Gardens with its average ROI of 6% has been one of the luxurious areas offering high rental yields on buy-to-let villas. Investors looking for more options can also consider the high-end villas in Yas Island that have been offering good rental yields of up to 5.2%.
TOP OFF-PLAN PROJECTS IN ABU DHABI
MOST POPULAR OFF-PLAN APARTMENTS IN ABU DHABI
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Harbour Heights | LOCATION Al Reem Island | CATEGORY Affordable |
PROJECT West Yas | LOCATION Yas Island | CATEGORY Affordable |
PROJECT Falaj Village | LOCATION Al Ghadeer | CATEGORY Affordable |
PROJECT Al Jurf Gardens | LOCATION Al Jurf | CATEGORY Affordable |
PROJECT Water’s Edge | LOCATION Yas Island | CATEGORY Luxury |
PROJECT Al Maryah Vista | LOCATION Al Maryah Island | CATEGORY Luxury |
PROJECT Al Raha Lofts | LOCATION Al Raha Beach | CATEGORY Luxury |
PROJECT Makers District | LOCATION Al Reem Island | CATEGORY Luxury |
During the year 2020, investors in search of reasonably-priced off-plan apartments have focused their interests on well-established island developments like Yas Island and Al Reem Island.
According to our Abu Dhabi real estate market report, Harbour Heights in Al Reem Island garnered the most investor attention for affordable off-plan apartments. The apartments for sale in Harbour Heights come in studio, 1, 2, and 3-bedroom layouts and have a starting price of AED 560k.
On the luxury front, buyers looking for luxury off-plan apartments have shown an inclination towards high-end waterfront projects like Water’s Edge on Yas Island and Al Maryah Vista on Al Maryah Island.
TOP OFF-PLAN VILLA PROJECTS IN ABU DHABI
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Saadiyat Reserve | LOCATION Saadiyat Island | CATEGORY Affordable |
PROJECT Water’s Edge | LOCATION Yas Island | CATEGORY Affordable |
PROJECT Yas Acres | LOCATION Yas Island | CATEGORY Luxury |
PROJECT Jawaher Saadiyat | LOCATION Saadiyat Island | CATEGORY Luxury |
Investors looking for reasonably-priced off-plan villas in Abu Dhabi have shown the most interest in Saadiyat Reserve properties. The villas on Water’s Edge have also garnered interest from prospective buyers and investors searching for off-plan villas in 2020.
With a starting price of AED 1.6M, the villas in Yas Acres have been the most sought-after by investors looking for luxury properties. The other project that has gained investors’ attention is Jawaher Saadiyat with its luxury off-plan villas.
Please note that the areas mentioned above may have multiple projects or phases, some of which may have been completed and handed over.
This brings us to the end of our Abu Dhabi annual sale market report for 2020. Clearly visible from the property price trends in Abu Dhabi, the property market has become increasingly investor-friendly, with signs of post-lockdown recovery.
Other than apartments and villas, investors may also like to explore the best areas to buy townhouses in Abu Dhabi to diversify their investment portfolio.
Talking about the Abu Dhabi real estate market in 2020, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said:
“Given the exceptional circumstances we encountered in 2020, it’s remarkable to see how demand has sustained and even grown in the capital. It’s not surprising that rents have become more competitive, considering how price sensitive the market is at the moment, but what is reassuring is the performance of the sales market. Price fluctuations have been extremely controlled, with some high-end areas even recording recovery over the course of the year. This is in part due to the government’s excellent efforts to contain the pandemic and support the real estate sector in Abu Dhabi.
Similarly, at Bayut & dubizzle, we were able to quickly adapt to the circumstances and focus on how to provide value to our consumers and partners during these challenging times. It’s certainly been a defining year for us; our parent company EMPG became the region’s only homegrown tech unicorn, while our family at Bayut & dubizzle joined forces in our upgraded and extended office in d3.
We’re optimistic about the year ahead, especially since the capital has left no stone unturned in combating the pandemic. The widespread vaccination campaign launched by the Abu Dhabi health authorities has also been critical in cementing the emirate’s appeal among residents and investors.”
Foreign investors looking for long-term real estate investments in the capital can consider the properties in freehold areas in Abu Dhabi.
Investors interested in buying properties in Dubai can gauge market conditions, price trends and area popularity from our detailed Dubai Annual Sales Report for 2020.
Stay tuned for the Bayut & dubizzle 2020 market reports on Sharjah and Ajman for more investment options in the UAE.
Disclaimer: The above report is based on prices advertised on Bayut.com and dubizzle.com by real estate agencies on behalf of their clients. These prices are not representative of actual real estate transactions conducted in Abu Dhabi.
