Abu Dhabi Market Report for H1 2020: Prices continue to be attractive for tenants and buyers in the Abu Dhabi real estate market
With the first half of 2020 coming to an end, it’s time to evaluate how property prices in the capital have evolved over the past 6 months with Bayut’s detailed H1 2020 Abu Dhabi Market Report. Similar to our Dubai Property Market Report for H1 2020, this report compares Abu Dhabi property prices in the first six months of 2020 to the last six months of 2019.
Over the last few months, we have experienced one of the most challenging periods in human history. However, despite the difficult environment, the capital city’s real estate market has largely stayed resilient, with prices only declining marginally in the most prominent areas. Let’s take a closer look at all the popular areas for renting and buying in the capital and how the real estate prices in Abu Dhabi have fared this quarter.
For an accurate representation of sales trends for apartments and villas in popular areas, we have compared property prices in Abu Dhabi on the basis of average price per square foot. While the average price per square foot is a better indicator of sales price fluctuations in the market, it is influenced by several factors such as the influx of new off-plan properties, the property type, access to amenities and other pivotal factors including demand.
For rental properties, we have compared average asking prices for each unit type for an accurate assessment of consumer interest for Bayut’s H1 2020 Abu Dhabi Market Report.
TRENDS SEEN IN BAYUT’S ABU DHABI REAL ESTATE MARKET REPORT FOR H1 2020
Our analysis of Abu Dhabi property trends in H1 2020 reveals that the capital continues to attract investors and renters with competitive property prices, a wide portfolio of properties, high ROI and good infrastructure. Overall prices remain attractive with modest declines in most areas. In terms of popularity upscale and suburban neighbourhoods such as Al Reem Island, Al Raha Beach, Saadiyat Island and Yas Island have attracted the most attention from investors.
Despite mobility restrictions, the Abu Dhabi real estate market has maintained a good momentum of property transactions in the city. The latest report released by the Department of Municipalities and Transport (DMT) revealed that the value of real estate transactions in Abu Dhabi increased by 34% to reach AED6.3 billion by the end of April 2020, through 2,617 real estate deals, compared to the AED4.6 billion transactions which were facilitated through 1,840 deals during the same period last year.
Officials from DMT report that the stimulus packages launched by the UAE to tackle the economic repercussions of the pandemic were a major factor in preserving the vitality of Abu Dhabi’s real estate market.
AL REEM ISLAND PREVAILS AS THE FAVOURITE FOR BUYING APARTMENTS IN ABU DHABI PROPERTY MARKET
PROPERTY PRICES FOR BUYING FLATS IN ABU DHABI
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 | STUDIO APT | 1-BED APT | 2-BED APT |
|---|---|---|---|---|---|
| Al Reem Island | ROI 7.2% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019
| STUDIO APT
| 1-BED APT
| 2-BED APT
|
| Al Raha Beach | ROI 6.8% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019
| STUDIO APT
| 1-BED APT
| 2-BED APT
|
| Saadiyat Island | ROI 5.8% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019
| STUDIO APT
| 1-BED APT
| 2-BED APT
|
| Al Reef | ROI 8.1% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019
| STUDIO APT
| 1-BED APT
| 2-BED APT
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| Al Ghadeer | ROI 8.5% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019
| STUDIO APT
| 1-BED APT
| 2-BED APT
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| Masdar City | ROI 6.9% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019
| STUDIO APT
| 1-BED APT
| 2-BED APT
|
| Yas Island | ROI 6.7% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019
| STUDIO APT
| 1-BED APT
| 2-BED APT
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| Baniyas | ROI 6.2% | PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019
| STUDIO APT
| 1-BED APT
| 2-BED APT
|
In H1 2020, Al Reem Island is the favoured choice for investors and buyers looking to purchase apartments in Abu Dhabi. As per our analysis of Abu Dhabi property price trends in this area, the average price per square foot in Al Reem Island has experienced a marginal drop of 2.9%, from AED 998 in H2 2019 to AED 970 in H1 2020. The overall cost to buy apartments in Al Reem Island remains competitive with studios averaging at AED 538k, 1-bedrooms at AED 825k and 2-bedrooms at AED 1.32M respectively.
The luxurious waterfront development of Al Raha Beach retains the second position as a popular area to buy apartments in Abu Dhabi for H1 of 2020. The price per square foot in this neighbourhood has also gone down by 4.5%, which is reflected in the average cost for certain units. The 1-bedroom units have gone from AED 1.19M in the last six months of 2019 to an average of AED 1.12M now, while average prices for 2-bedroom flats in Al Raha Beach have gone from AED 1.345M to AED 1.322M. Average prices for studios experienced a slight increase from AED 902k in H2 2019 to AED 928k now.
Other locations that attracted attention from investors with respect to apartments for sale in Abu Dhabi are Saadiyat Island, Al Reef, Al Ghadeer, Masdar City, Yas Island and Baniyas.
The Abu Dhabi property price trends in these areas show the price per square foot has largely remained unchanged, with the exception of Al Ghadeer and Masdar City where the average price per square foot has gone down by 8.6% and 8.1%, respectively. According to our analysis of property prices in Abu Dhabi, the average price per square foot for apartments for sale in Al Ghadeer went down from AED 805 previously to AED 735 now, while the price per square foot to buy apartments in Masdar City went from AED 1,166 to AED 1,072. These are fairly new communities, so some fluctuation in prices can be expected as landlords and developers evaluate consumer interest to incentivise buyers.
MARINA SQUARE IS THE MOST POPULAR AREA TO BUY FLATS IN AL REEM ISLAND
The most popular area in Al Reem Island to buy apartments is Marina Square – a mixed-use development with multiple luxurious residential towers. The apartments for sale in Marina Square offer buyers a variety of property choices, from cosy studios to luxurious 4-bedroom apartments. Investors can expect to pay a minimum of AED 520k for a studio, AED 660k for a 1-bed, AED 907k for a 2-bed, AED 1.48M for a 3-bed and AED 1.8M for a 4-bed.
Other popular areas with apartments for sale in Al Reem Island include Shams Abu Dhabi, City Of Lights, Shams Gate District and Najmat Abu Dhabi.
AL GHADEER HAS THE BEST RENTAL YIELD IN ABU DHABI FOR APARTMENTS
The apartments for sale in Al Ghadeer offer investors the most attractive rental yields in Abu Dhabi at 8.5%. Another area for investors interested in buy-to-let properties is Al Reef, which has a healthy average ROI of 8.1%.
Now let’s take a look at the property prices in Abu Dhabi for renting apartments.
AL REEM ISLAND IS THE MOST POPULAR CHOICE FOR RENTING APARTMENTS IN ABU DHABI
TOP 10 AREAS FOR APARTMENT RENTALS IN ABU DHABI
POPULAR AREAS | STUDIO Avg. Yearly RentChange from H2 2019 | 1-BED APT Avg. Yearly RentChange from H2 2019 | 2-BED APT Avg. Yearly RentChange from H2 2019 |
|---|---|---|---|
| Al Reem Island | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
|
| Al Khalidiyah | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
|
| Khalifa City A | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
|
| Al Muroor | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
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| Hamdan Street | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
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| Corniche Area | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
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| Airport Street | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
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| Mussafah | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
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| Al Nahyan | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
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| Tourist Club Area (TCA) | STUDIO Avg. Yearly RentChange from H2 2019
| 1-BED APT Avg. Yearly RentChange from H2 2019
| 2-BED APT Avg. Yearly RentChange from H2 2019
|
| Not available due to low/no historical inventory or influx of off-plan properties | |||
Along with being the top choice for buying apartments, Al Reem Island is also popular with tenants looking for rental apartments in the capital city. Rents for Al Reem Island apartments are largely stable with only studios experiencing a decrease. Prices for these units went from AED 49k in the last six months of 2019 to AED 46k in the first six months of 2020. The average rents for 1 and 2-bedroom flats, however, remained unchanged at AED 63k and AED 90k respectively.
The established district of Al Khalidiyah is the next sought-after area in the Abu Dhabi real estate market for rental apartments. Abu Dhabi property price trends indicate that rentals in Al Khalidiyah have remained steady. The rents for studios in Al Khalidiya average at AED 35k, while 1 and 2-bedroom flats average at AED 58k and AED 65k respectively.
Other areas in the real estate market in Abu Dhabi that are popular for renting flats include Khalifa City A, Al Muroor, Hamdan Street, Corniche Area, Airport Street, Mussafah, Al Nahyan and Tourist Club Area (TCA).
SHAMS ABU DHABI IS A POPULAR SUB-COMMUNITY TO RENT IN AL REEM ISLAND
As per our analysis of rental trends in Abu Dhabi, Shams Abu Dhabi is the most popular area with potential tenants looking for rental flats in Al Reem Island. It is located at a five-minute drive from the city centre and is a vibrant leisure and business destination. As per Bayut’s latest listings, prices for flats for rent in Shams Abu Dhabi start from AED 40k.
The other popular areas to rent apartments in Al Reem Island include Marina Square, City Of Lights, Shams Gate District and Najmat Abu Dhabi.
Al REEF IS THE MOST POPULAR NEIGHBOURHOOD WITH VILLAS FOR SALE IN ABU DHABI
PROPERTY PRICES IN ABU DHABI FOR BUYING VILLAS
POPULAR AREAS |
ROI |
PRICE PER SQ.FT
Avg. Price/sq.ftChange from H2 2019
|
3-BED VILLA |
4-BED VILLA |
5-BED VILLA |
|---|---|---|---|---|---|
| Al Reef |
ROI
7.1%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from H2 2019
|
3-BED VILLA
|
4-BED VILLA
|
5-BED VILLA
|
| Saadiyat Island |
ROI
4.4%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from H2 2019
|
3-BED VILLA
|
4-BED VILLA
|
5-BED VILLA
|
| Yas Island |
ROI
4.6%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from H2 2019
|
3-BED VILLA
|
4-BED VILLA
|
5-BED VILLA
|
| Khalifa City A |
ROI
4.9%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from H2 2019
|
3-BED VILLA
|
4-BED VILLA
|
5-BED VILLA
|
| Al Raha Gardens |
ROI
6.1%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from H2 2019
|
3-BED VILLA
|
4-BED VILLA
|
5-BED VILLA
|
|
Not available due to low/no historical inventory or influx of off-plan properties
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According to Bayut’s H1 2020 Market Report in Abu Dhabi, Al Reef continues to attract great interest from prospective buyers looking to invest in villas in Abu Dhabi. In H1 2020, the average price per square foot for villas in Al Reef experienced a minor decline of 3.1% from AED 616 to AED 596, increasing the appeal of the competitively priced neighbourhood among buyers. The average asking prices for 3-bedroom villas went from AED 1.4M in H2 2019 to AED 1.34M in H1 2020, while 4-bedroom villas noticed a price decrease from AED 1.94M to AED 1.85M. The average prices for 5-bedroom units remain relatively unchanged at AED 2.1M.
Saadiyat Island is the next freehold area that is drawing the interest of prospective buyers. Real estate trends in Abu Dhabi reveal that the average sales price per square foot remained relatively stable with a minor decrease of 1.4%. The average price per square foot currently averages at AED 1,411, slightly lower compared to the average asking price of AED 1,431 in H2 2019. As a result, 3-bedroom villas in Saadiyat Island have seen average sales costs go from AED 6.4M in H2 2019 to AED 5.73M now, while 4-bedroom villas went from AED 6.56M previously to AED 6.47M now. Finally, the sales price per square foot for the ultra-luxurious 5-bedroom villas for sale in Saadiyat Island increased marginally from AED 10.1M previously average at 10.5M now.
Other popular areas with villas for sale in Abu Dhabi include Yas Island, Khalifa City A and Al Raha Gardens. On average, property price trends in Abu Dhabi for buying villas in these areas are relatively stable.
AL REEF HAS THE HIGHEST ROI IN ABU DHABI FOR VILLAS
Investors looking for villas with the best ROI in Abu Dhabi can consider Al Reef. According to our market analysis for H1 2020, Al Reef villas deliver attractive rental returns of 7.1%. This is closely followed by the villas in Al Raha Gardens which offers rental returns of 6.1% on average. Yas Island and Saadiyat Island also offer good ROI at the 4% mark for those interested in buying villas in Abu Dhabi.
MOHAMMED BIN ZAYED CITY IS THE PREFERRED CHOICE FOR RENTING VILLAS IN ABU DHABI
RENTAL PRICES FOR VILLAS IN ABU DHABI
POPULAR AREAS |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
|
|---|---|---|---|
| Mohammed Bin Zayed City |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
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| Khalifa City A |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
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| Al Reef |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
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| Shakhbout City (Khalifa City B) |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
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| Al Mushrif |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
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| Al Bateen |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
N/A
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
|
| Saadiyat Island |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
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| Al Karamah |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
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| Al Raha Gardens |
3-BED VILLA
Avg. Yearly RentChange from H2 2019
|
4-BED VILLA
Avg. Yearly RentChange from H2 2019
|
5-BED VILLA
Avg. Yearly RentChange from H2 2019
|
|
Not available due to low/no historical inventory or influx of off-plan properties
|
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Mohammed Bin Zayed City (MBZ City) is once again the top area for renting villas in Abu Dhabi. This large villa community is known for its affordable housing options and family-friendly amenities. In the first six months of 2020, rents for villas in MBZ City have remained affordable. The rental prices for 3-bedroom villas in MBZ City went from AED 95k in H2 2019 to AED 89k now, while prices for 4-bedroom houses in the area went from AED 128k to AED 121k. The larger 5-bedroom villas for rent in MBZ City remain unchanged with yearly rents averaging at AED 143k.
Khalifa City A is the second-most popular area for villa rentals in Abu Dhabi. Rents for Khalifa City A villas have remained fairly stable, as per trends for property prices in Abu Dhabi, averaging at AED 125k for a 3-bed unit, AED 150k for 4-beds and AED 164k for 5-bed homes.
Al Reef, Shakhbout City (Khalifa City B), Al Mushrif, Al Bateen, Saadiyat Island, Al Karamah and Al Raha Gardens are also popular for rental villas in Abu Dhabi.
POPULAR AREAS TO RENT HOUSES IN MOHAMMED BIN ZAYED CITY
Consumer interest on Bayut reveals that the villas for rent in Mohamed Bin Zayed Centre are the most popular options for tenants keen on this family-friendly neighbourhood. As per Bayut’s latest listings, the lowest rents for 4, 5 and 6-bedroom houses in Mohamed Bin Zayed Centre are AED 100k, AED 125k and AED 140k respectively.
Zones 7, 5, 17 and 14 are the other popular sub-communities in MBZ City for renting villas.
Now let’s take a look at the real estate trends in Abu Dhabi in 2020 for the off-plan market.
OFF-PLAN PROJECTS IN THE ABU DHABI REAL ESTATE MARKET
TOP OFF-PLAN PROJECTS IN ABU DHABI FOR H1 2020
AREA | PROJECT | PROPERTY TYPE |
|---|---|---|
AREA Yas Island | PROJECT Yas Acres | PROPERTY TYPE Villas and Townhouses |
AREA Al Reem Island | PROJECT Shams Abu Dhabi | PROPERTY TYPE Apartments |
AREA Saadiyat Island | PROJECT Jawaher Saadiyat | PROPERTY TYPE Villas and Townhouses |
AREA Al Maryah Island | PROJECT Al Maryah Vista | PROPERTY TYPE Apartments |
AREA Masdar City | PROJECT The Gate | PROPERTY TYPE Apartments |
Similar to Q1 2020, freehold areas such as Yas Island, Saadiyat Island and Masdar City, have garnered interest from investors and potential homeowners. Within these neighbourhoods, Yas Acres in Yas Island and Jawaher Saadiyat in Saadiyat Island are attractive options to consider for villas and townhouses
Investors whose interest leans specifically towards apartments should consider off-plan projects such as Shams Abu Dhabi in Al Reem Island, Al Maryah Vista in Al Maryah Island and The Gate in Masdar City.
Haider Ali Khan, CEO of Bayut and dubizzle, commented on the performance of the Abu Dhabi real estate market:
“The real estate market in the UAE and the capital in particular, stayed more or less resilient despite the unprecedented challenges created by the COVID-19 pandemic. Thanks to the initial timely response and stimulus measures to support landlords and tenants, the market as a whole was able to bounce back, recover and adapt to the new normal. Similar to the DMT’s reports about the increase in transactions during April to over AED 6 billion, we have observed a corresponding increase in interest on Bayut, with views for properties in Abu Dhabi increasing progressively on a monthly basis. In the last two months alone, the total traffic for listings in Abu Dhabi has come close to 5 million views on Bayut, reflecting the growing interest in the capital’s market. Although inter-emirate travel has not returned to pre-COVID levels, the lack of any mobility restrictions have helped home seekers to easily move homes and find good investment opportunities in the capital.
As the market matures further, we are likely to see these trends continue with more investors, buyers and tenants taking the step to invest, buy and live in the capital city.”
That concludes our H1 2020 market report on property prices in Abu Dhabi. Subscribe to MyBayut to get notified when our reports for Dubai, Sharjah and Ajman are published on our blog.
Disclaimer: The above report is based on Abu Dhabi property prices advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Abu Dhabi.
