Bayut & dubizzle’s Abu Dhabi H1 Market Report for properties for sale in 2021
- Affordable Apartment Sales
- Luxury Apartment Sales
- Affordable Villa Sales
- Luxury Villa Sales
- Top Off-Plan Projects
Now that we are six months into 2021, it’s time to evaluate how the property sale prices in Abu Dhabi have fared during the first half of the year based on consumer interest for properties listed on both Bayut & dubizzle. Following on from the trends in the last quarter, property prices in Abu Dhabi have stayed stable for the Bayut & dubizzle H1 Sales Market Report for 2021, with promising signs of the market picking up pace.
Consumer trends observed on Bayut & dubizzle during H1 2021 have revealed that Abu Dhabi’s property prices are seeing a general uptick for both luxury apartments and villas while those in the affordable category have either stayed steady or become more reasonable:
- Reasonably-priced apartment communities have experienced a fall in sales price-per-square-foot between 1% to 3%, while luxury apartments have seen an uptick in sales price between 1% to 4%.
- Sales price-per-square-foot for villas in Abu Dhabi have also appreciated, with recovery rates ranging between 1% and 9% during the first six months of 2021.
This stability has ensured the Abu Dhabi real estate market has remained largely buyer-friendly during 2021, with modest fluctuations for prices in most areas.
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 H1 2021.
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 H1 2021.
TOP NEIGHBOURHOODS IN ABU DHABI ACCORDING TO TRENDS ON BAYUT & DUBIZZLE ABU DHABI H1 MARKET REPORT
For the Abu Dhabi H1 2021 sales market report, our data experts have compared the Abu Dhabi H1 2021 real estate prices for listings on Bayut & dubizzle (excluding room share) against those from H2 2020, to discover common consumer trends in Abu Dhabi’s real estate market.
Property search trends on Bayut & dubizzle have revealed that homebuyers and investors are more inclined towards integrated island developments such as Yas Island, Saadiyat Island and Al Reem Island in the Abu Dhabi real estate market during H1 2021.
Well-established suburban districts such as Masdar City, Al Ghadeer and Al Reef have also gained traction as popular choices for investors in H1 2021.
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 H2 2020 | STUDIO | 1-BED | 2-BED |
|---|---|---|---|---|---|
| Masdar City | ROI 8.82% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| STUDIO
| 1-BED
| 2-BED
|
| Al Reef | ROI 8.05% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| STUDIO
| 1-BED
| 2-BED
|
| Al Ghadeer | ROI 6.55% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| STUDIO
| 1-BED
| 2-BED
|
Masdar City has emerged as the top choice for investors and buyers looking for affordable apartments for sale in Abu Dhabi. Located right next to the Abu Dhabi International Airport, this sustainable urban community has made a mark in the emirate’s real estate market thanks to its good connectivity and ample amenities.
Based on our Abu Dhabi real estate market analysis for H1 2021, the average price-per-square-foot for flats for sale in Masdar City has reduced slightly by 3.1% from AED 1,222 to AED 1,184. The price for studio flats in Masdar City has held steady at 522k, while the prices for 1-bed and 2-bed flats for sale have decreased to AED 741k and AED 1.03M respectively.
The suburban area of Al Reef has also garnered considerable interest from those interested in the apartments for sale in Abu Dhabi in the affordable category. During H1 2021, there has been a minor increase of 0.40% in the sales price-per-square-foot for flats in Al Reef, with studios averaging at AED 459k, 1-bedroom flats at AED 640k and 2-bedroom apartments at AED 807k.
The relatively new Al Ghadeer suburb has also been popular among buyers for affordable properties in Abu Dhabi. The area has seen prices remain fairly stable for all property types, ranging between AED 364k and AED 675k, on average.
LEONARDO RESIDENCES IS THE MOST POPULAR WITH BUYERS FOR MASDAR CITY
Within Masdar City, Leonardo Residences has been the only fully handed over sub-community, it has attracted homebuyers due to its reasonably-priced inventory of studio, 1 and 2-bed flats. Flats for sale in Leonardo Residences, Masdar City are priced as low as 490k.
MASDAR CITY OFFERS THE BEST RENTAL YIELDS IN ABU DHABI FOR AFFORDABLE APARTMENTS
Investors looking for affordable buy-to-let apartments in Abu Dhabi should note that apartments in Masdar City can earn you a projected rental yield of 8.8%. Besides Masdar City, the Al Reef neighbourhood also has competitively priced apartments that have offered a return on investment of up to 8.1%.
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 H2 2020 | 1-BED | 2-BED | 3-BED |
|---|---|---|---|---|---|
| Al Reem Island | ROI 6.59% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 1-BED
| 2-BED
| 3-BED
|
| Saadiyat Island | ROI 6.15% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 1-BED
| 2-BED
| 3-BED
|
| Al Raha Beach | ROI 6.71% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 1-BED
| 2-BED
| 3-BED
|
| Yas Island | ROI 7.10% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 1-BED
| 2-BED
| 3-BED
|
Al Reem Island has continued to retain its position as the most popular choice for buying luxury apartments in Abu Dhabi. The island district is particularly sought after for its lavish properties, high-end amenities, good connectivity and proximity to major commercial and leisure hubs in Abu Dhabi.
The price-per-square-foot to buy apartments in Al Reem Island has seen a minor uptick of 1.6%, averaging at AED 999 in H1 2021. The apartments for sale in Al Reem Island have also remained competitive with 1-bed units averaging at AED 809k while the larger 2-bed and 3-bed flats averaging at AED 1.3M and AED 1.9M respectively.
The second most popular choice among investors for expensive apartments in Abu Dhabi has been Saadiyat Island. The price-per-square-foot for apartments for sale in Saadiyat Island have averaged at AED 1,482 after a 3.5% increase from H2 2020. The asking sales price for luxury apartments in Saadiyat Island has averaged at AED 2.1M for 1-bed, AED 2.7M for 2-bed and AED 4.2M for 3-bed units.
Investors have also looked at Al Raha Beach and Yas Island for luxury apartments for sale in Abu Dhabi.
SHAMS ABU DHABI IS THE TOP CHOICE FOR BUYING APARTMENTS IN AL REEM ISLAND
Based on Abu Dhabi property prices and real estate trends observed in H1 2021, Shams Abu Dhabi has emerged as the most searched community among prospective homebuyers in search of apartments in Al Reem Island.
With options spanning across studios, 1, 2 and 3-bed units, the apartments for sale in Shams Abu Dhabi offer high-end amenities to its residents, making it an excellent choice for those interested in premium real estate in the capital.
Investors have also shown interest towards the communities of Marina Square, Shams Gate District, City of Lights and Najmat Abu Dhabi.
YAS ISLAND OFFERS THE BEST ROI IN ABU DHABI FOR LUXURY APARTMENTS
According to Bayut & dubizzle’s combined market report, Yas Island with a projected rental yield of 7.1% has offered the best returns for luxury buy-to-let apartments in Abu Dhabi throughout H1 2021. However, this is the average ROI for the area and can vary based on the location, developer, type of unit and the amenities offered.
Other areas with good return on investment for expensive apartments in Abu Dhabi include Al Raha Beach and Al Reem Island with average ROIs of 6.7% and 6.6% 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 H2 2020 | 3-BED | 4-BED | 5-BED |
|---|---|---|---|---|---|
| Al Reef | ROI 6.47% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 3-BED
| 4-BED
| 5-BED
|
| Hydra Village | ROI 7.76% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 3-BED
| 4-BED
| 5-BED
|
| Shakhbout City (Khalifa City B) | ROI 8.05% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 3-BED
| 4-BED
| 5-BED
|
| Mohammed Bin Zayed City | ROI 5.84% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 3-BED
| 4-BED
| 5-BED
|
| Khalifa City A | ROI 5.07% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 3-BED
| 4-BED
| 5-BED
|
| Not available due to low/no historical inventory or influx of off-plan properties | |||||
For villas for sale in Abu Dhabi in the affordable segment, our analysis of real estate trends has revealed that homebuyers prefer the properties in Al Reef. Besides the reasonably-priced homes, this suburb is popular for its proximity to Dubai.
During H1 2021, the sales price-per-square-foot for Al Reef villas has averaged at AED 658 following a modest uptick of 5.2% from the prices in H2 2020. The asking prices for villas for sale in Al Reef have averaged at AED 1.5M for 3-bed homes, 2.1M for 4-bed houses and 2.4M for 5-bed villas.
According to the trends for Abu Dhabi property prices as seen on Bayut & dubizzle, the villas for sale in Hydra Village have also captured the interest of buyers on a budget. The price-per-square-foot for houses in Hydra Village has experienced a slight decrease of 2.5% from that in H2 2020. On average, the 3-bed homes in Hydra Village have averaged at AED 909k.
Besides the aforementioned communities, property trends in Abu Dhabi have revealed that investors are also keen on self-sustaining suburban areas like Shakhbout City (Khalifa City B), Khalifa City A and Mohammed Bin Zayed City to buy cheap villas in Abu Dhabi.
AL REEF VILLAS IS THE MOST-SEARCHED-FOR COMMUNITY IN AL REEF
The houses in Al Reef are available in the Al Reef Villas community, which is further divided into four individualistic villa clusters – in Arabian, Mediterranean, Contemporary and Desert styles.
Based on the Abu Dhabi real estate market trends observed on Bayut & dubizzle, the Arabian cluster in Al Reef Villas has appealed the most to investors in search of affordable Al Reef Villas. Villas for sale in the Arabian Style cluster are available in 2, 3, 4 and 5-bed layouts.
Homebuyers have also shown considerable interest towards the reasonably-priced Mediterranean, Desert and Contemporary villa styles.
SHAKHBOUT CITY (KHALIFA CITY B) OFFERS THE HIGHEST ROI IN ABU DHABI FOR AFFORDABLE VILLAS
Investors looking for reasonably-priced villas with good returns on investment should focus their search on Shakhbout City (Khalifa City B) that has offered projected returns as high as 8.05% during H1 2021.
Other areas offering good rental yields for affordable villas in Abu Dhabi include Hydra Village with an ROI of 7.8% and Al Reef with rental yields of up to 6.5%.
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 H2 2020 | 4-BED | 5-BED | 6-BED |
|---|---|---|---|---|---|
| Saadiyat Island | ROI 4.96% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 4-BED
| 5-BED
| 6-BED
|
| Yas Island | ROI 5.26% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 4-BED
| 5-BED
| 6-BED
|
| Al Raha Gardens | ROI 5.79% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2020
| 4-BED
| 5-BED
| 6-BED
|
Based on the price trends observed for property sales in Abu Dhabi, Saadiyat Island has continued to be the preferred choice for investors interested in buying luxury villas in the capital.
The price-per-square-foot for villas for sale in Saadiyat Island in the luxury category has experienced a slight increase, averaging at AED 1,357 in H1 2021 as opposed to AED 1,343 in H2 2020. During the first six months of 2021, the prices for 4-bed villas in Saadiyat Island have averaged at AED 7.7M, whereas the 5-bed and 6-bed houses have been priced at AED 11.8M and AED 16.3M respectively, on average.
Another popular choice for luxury home buyers in Abu Dhabi are the villas in Yas Island, they have seen an 8.7% uptick in the sales price-per-square-foot, which averaged at AED 1,075 for H1 2021. On average, investors can expect to pay AED 4.6M for 4-bed, AED 6.1M for 5-bed and AED 8.7M for 6-bed villas in Yas Island.
Investors looking to enhance their luxury property portfolio have also been keen on the villas in Al Raha Gardens. The price-per-square-foot for homes in Al Raha Gardens has increased by 2.2% to average at AED 830. During H1 2021, prices for 4-bed villas in Al Raha Gardens have averaged at AED 2.7M, whereas the average price of 5 and 6-bed villas is AED 3.9M and AED 4.6M respectively.
HIDD AL SAADIYAT RANKS FIRST FOR BUYING VILLAS IN SAADIYAT ISLAND
Buyers and investors looking for premium villas in Saadiyat Island have been keen on the villas for sale in Hidd Al Saadiyat. These luxe homes in Hidd Al Saadiyat are available in 4, 5 and 6 bedroom units.
Besides Hidd Al Saadiyat, property buyers have also shown inclination towards the lavish homes in Saadiyat Beach, Saadiyat Cultural District and Jawaher Saadiyat.
AL RAHA GARDENS OFFERS THE HIGHEST RENTAL RETURNS FOR LUXURY VILLAS IN ABU DHABI
With an average ROI of 5.8%, Al Raha Gardens has been offering the highest rental yields on luxury buy-to-let villas. The upscale villas in Yas Island also offer healthy rental returns of up to 5.3%.
TOP OFF-PLAN PROJECTS IN ABU DHABI
MOST POPULAR OFF-PLAN APARTMENTS IN ABU DHABI
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Diva | LOCATION Yas Island | CATEGORY Affordable |
PROJECT Oasis Residences | LOCATION Masdar City | CATEGORY Affordable |
PROJECT Al Ghadeer Phase II | LOCATION Al Ghadeer | CATEGORY Affordable |
PROJECT Water’s Edge | LOCATION Yas Island | CATEGORY Luxury |
PROJECT Makers District | LOCATION Al Reem Island | CATEGORY Luxury |
PROJECT Saadiyat Cultural District | LOCATION Saadiyat Island | CATEGORY Luxury |
During H1 2021, investors looking for affordable off-plan apartments in Abu Dhabi have shown an interest towards well-established waterfront developments like Yas Island and master-planned communities in the suburbs such as Masdar City and Al Ghadeer.
According to our Abu Dhabi real estate market report for property for sale, Diva in Yas Island has captured the most investor interest for affordable off-plan apartments. The apartments for sale in Diva are available in studio, 1, 2, and 3-bed configurations
In the luxury segment, property buyers interested in upscale off-plan apartments have focussed their searches on luxury waterfront projects like Water’s Edge on Yas Island and Makers District on Al Reem Island.
TOP OFF-PLAN VILLA PROJECTS IN ABU DHABI
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Noya | LOCATION Yas Island | CATEGORY Affordable |
PROJECT Al Ghadeer Phase II | LOCATION Al Ghadeer | CATEGORY Affordable |
PROJECT Yas Acres | LOCATION Yas Island | CATEGORY Luxury |
PROJECT Saadiyat Cultural District | LOCATION Saadiyat Island | CATEGORY Luxury |
Investors in search of affordable off-plan villas in Abu Dhabi have been keen on the houses in Noya, Yas Island. With its proximity to Dubai, the off-plan Al Ghadeer Phase II development has also garnered considerable interest from prospective investors and buyers in search of under construction villas in H1 2021.
In the luxury category, the villas in Yas Acres have been the firm favourite for investors. The Saadiyat Cultural District is another project that was sought-after by investors looking for lucrative off-plan villas in Abu Dhabi.
Please note that the areas mentioned above may have multiple projects or phases, some of which may have been completed and handed over.
Commenting on the prevailing real estate market trends in Abu Dhabi, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said:
“Over the last year, Abu Dhabi has sent a strong message to the global community with the way it has handled the public health implications of the pandemic, highlighting its appeal as a well-integrated family-friendly city where you can build roots and be secure. This has also played a part in creating more demand for the residential property market and particularly family friendly villas in Abu Dhabi, both among tenants and prospective homeowners.
The proactive containment measures and widespread vaccination drives have also enhanced the attractiveness of Abu Dhabi for investors and buyers. Coupled with this, the drive towards developing the portfolio of affordable, sustainable communities with high projected rental yields and luxurious island communities with amenities that are at par with most global investment hubs has also resulted in rising demand for properties in Abu Dhabi.”
With that, we wrap up the Abu Dhabi Sale Market Report for H1 2021. As observed from the property price trends in Abu Dhabi, the real estate market has maintained its stability and remains investor-friendly.
Investors who wish to diversify their investment portfolio beyond apartments and villas can always explore the best areas to buy townhouses in Abu Dhabi.
Foreign investors looking for long-term real estate investments in the capital can consider the properties in freehold areas in Abu Dhabi.
Investors who want to buy properties in Dubai can get detailed insights on the market conditions, price movements and area popularity from our detailed Dubai Sales Report for H1 2021.
Stay tuned for the Bayut & dubizzle 2021 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.
