Abu Dhabi Real Estate Market Report for H2 2018: Property prices in Abu Dhabi experience modest decline in the second half of 2018
It’s that time of the year again, when Bayut delves into the Abu Dhabi real estate market. To give you an in-depth look, the prices for apartments and villas in the most popular areas in Abu Dhabi are compared to prices in H1. Take a closer look at the how the Abu Dhabi real estate market has fared over the last six months! Find out how the property prices in Abu Dhabi has shifted and the best places to invest and rent. Get updated on the areas in that will give you the highest ROI and the trending off-plan communities in the Abu Dhabi property market.
Property prices in Abu Dhabi have continued to decrease overall from H1 2018 and the capital city continues to remain a buyer’s and renter’s market. The H2 2018 market report shows that sale and rental prices have fallen on average, but with modest decreases when compared to H1. Renters now have the opportunity to upgrade their home, while first-time buyers may find it easier to enter the Abu Dhabi real estate market. However, the increase in property prices in Abu Dhabi for a few areas along with modest decreases in others may signal some stability in the Abu Dhabi property market.
BUYER’S MARKET CONTINUES AS PROPERTY PRICES IN ABU DHABI for apartments SEES MODEST DECLINE
Al Reem Island still reigns supreme as the most popular area to buy apartments in Abu Dhabi. The H2 market report reveals that the area has only experienced a slight decrease in property prices, with the most notable decline in prices for studio apartments that fell by 6.5%, taking the average price from AED 620k to AED 580k. A prime opportunity for investors, 1-bedroom units for sale in Al Reem Island has also fallen to AED 950k from AED 1M in H1 2018. The stunning waterfront community of Al Reem Island has remained a favourite with buyers in Abu Dhabi, offering luxury homes with world-class amenities.
The second-most popular area to buy apartments in Abu Dhabi is the prime area of Al Raha Beach. Another beautiful waterfront development, the biggest decline in prices here is for 2-bedroom units at 10%. Buyers can now expect buying prices of 2-bedroom apartments in Al Raha Beach to average AED 1.8M, dropping from AED 2M in H1. Otherwise, the price of investing in studio apartments in Al Raha Beach has also witnessed a fall, from AED 1M to AED 950k.
On average, the property price trends in Abu Dhabi for apartment sales continue on a downtrend with modest decreases in most areas. Al Ghadeer, Masdar City, Baniyas, Yas Island and Saadiyat Island also make it to the list of most popular areas for buying apartments in Abu Dhabi.
AL REEM ISLAND REMAINS THE MOST POPULAR AREA TO BUY APARTMENTS IN ABU DHABI
The coveted address of Al Reem Island takes the top spot again as the most popular area for buying apartments in Abu Dhabi. The high-end area embodies modern and luxury living with gorgeous views of the Arabian Gulf. An excellent choice for single professionals and families, Al Reem Island boasts excellent facilities and a blend of residential and retail spaces. A number of prestigious educational institutions in the area make it a great choice for families as well.
The most popular buildings in Al Reem Island for apartment sales is Marina Square, bringing in 38.5% of searches in the area. Shams Abu Dhabi, City of Lights, Shams Gate District and Hydra Avenue also rank as some of the popular areas for potential investors to buy apartments
MOHAMMED BIN ZAYED CITY COMES FIRST PLACE FOR APARTMENT RENTALS IN ABU DHABI
Mohammed Bin Zayed (MBZ) City once again takes the first place for being the most searched area for apartment rentals in Abu Dhabi by Bayut users. The up and coming, quiet suburb of MBZ City has gained popularity with residents due to the variety of property types available and its proximity to Dubai. MBZ City has also become prominent in the Abu Dhabi real estate market due to its reasonable rents. While the area is better known for its sprawling villas, renters can expect to find a variety of attractive apartments, from studios to spacious 4-bedroom units. Take a look at Bayut’s Mohammed Bin Zayed City guide to the area to know more about the community.
Renters can take advantage of falling property prices in Abu Dhabi to upgrade to this developing suburb. The H2 market report shows a significant drop in prices for studios and 1-bedroom units in MBZ City. A 10.7% decrease in prices for studios has taken the average price from AED 28k to AED 25k, while the rental prices for 1-bedroom units in MBZ City now average at AED 40k from AED 45k in H1. 2-bedroom units have remained stable with prices for AED 58k.
According to Bayut’s Abu Dhabi property market report, within MBZ City, Mohammed Bin Zayed Centre is the most popular community to rent apartments in Abu Dhabi. The sub-community accounted for 32.1% of interest from potential renters in the area.
AL REEM ISLAND RANKS SECOND FOR APARTMENT RENTALS IN ABU DHABI
Like buyers, renters in the city also consider Al Reem Island a favourite for apartment rentals, based on Bayut searches. And likewise, Marina Square again ranks as the most popular building within Al Reem for apartment rentals. The high-end residential towers with stunning views appeal to both investors and renters in search of their dream home.
It’s a great opportunity for single professionals and small families to upgrade to these luxurious residences. This is because similar to the rest of Abu Dhabi property prices, Al Reem Island has seen prices drop across studios, 1-bedroom and 2-bedroom apartments. The most notable decrease are for the prices for renting 1-bedroom units in Al Reem, experiencing a sharp decline of 9.3% from AED 75k to AED 68k. Meanwhile rental prices for studios and 2-bedroom units at Al Reem Island now average AED 50k and AED 99k respectively.
Other popular areas that renters searched for apartment rentals are Al Khalidiya, Al Muroor, Khalifa City A and Hamdan Street.
AL REEF AND AL GHADEER HAVE THE HIGHEST ROI FOR APARTMENT SALES
Investors intending to buy apartments in Abu Dhabi to receive a high ROI should consider the popular areas of Al Reef and Al Ghadeer. Bayut’s report for property price trends in Abu Dhabi shows that out of the most popular areas in Abu Dhabi, these two areas have the highest rental yields of 8.1%. Those looking to benefit from these areas’ high ROI will find the prices for investing in studios in Al Reef starting from AED 499k. Investors can expect to pay a starting price of AED 290k for studios for sale in Al Ghadeer. Other areas popular with investors for apartments have slightly lower ROIs: Al Raha Beach (7%), Al Reem Island (6.8%) and Masdar City (6.7%).
AL REEF RANKS AS MOST POPULAR AREA TO BUY VILLAS IN ABU DHABI
Abu Dhabi real estate trends for villa sales show that Al Reef once again came out on top as the most searched area by Bayut users to buy villas in the city. The family-friendly residential community of Al Reef is set on the outskirts of Abu Dhabi and is situated close to the airport and provides easy access to Dubai.
In line with the property price trends in Abu Dhabi, sale prices have fallen in Al Reef across 3, 4 and 5-bedroom villas, but only slightly. The largest decrease was for buying prices for 5-bedroom units in Al Reef, which have dropped from AED 2.45M in H1 to AED2.3M. On the other hand, sale prices for 3 and 4-bedroom villas are mostly stable, averaging AED 1.58M and AED 2.05M respectively.
The second-most popular area to buy villas in Abu Dhabi is the prestigious Saadiyat Island, where prices remained stable, and only sale prices for 5-bedroom units dropped by 4.3% to AED 8.8M. Read up on Bayut’s Saadiyat Island overview to get to know this luxury residential area. Other areas that Bayut users searched for include Yas Island, Al Raha Gardens and Hydra Village.
PROPERTY PRICES IN ABU DHABI FOR RENTING VILLAS EXPERIENCE DECLINE OVERALL
Khalifa City A retains its position as the favourite amongst those looking rent villas in Abu Dhabi. Famous for housing the lush Abu Dhabi Golf Club and Al Forsan International Sports Resort, this is a serene community with plenty of convenient amenities at hand. Interested in living here? Take a look at Bayut’s guide to living in Khalifa City A to see if this is the right home for you!
The prices for renting 3-bedroom villas in Khalifa City A average at a steady price of AED 130k, the same since H1. Perhaps the demand for these particular units in the popular community has kept the prices stable. Meanwhile, 4-bedroom villas for rent in Khalifa City A average at AED 165k, while 5-bedroom villas are available at AED 175k.
MBZ City ranks second-most popular with renters in Abu Dhabi, while Mohammed Bin Zayed Centre is the most popular sub-community in the area. Other areas that have received a large search volume on Bayut.com were Al Reef, Khalifa City B, Al Mushrif and Al Muroor.
INVESTORS CAN EXPECT THE HIGHEST ROI FOR VILLAS IN HYDRA VILLAGE
Just like apartments, investors who are eager for a high ROI from villas, should focus on Hydra Village, that has an impressive rental yield of 7.6%. Interested in buying a villa in Hydra Village? Buyers will have to shell out a starting price of AED 1.03M for a 3-bedroom villa in Hydra Village. This is followed by Al Reef, where buyers can expect an ROI of 7.3% from villas. Finally, the areas of Al Raha Gardens and Yas Island have lower ROIs of 6.7% and 5.9% respectively. Saadiyat Island rounds up the list with an ROI of 4.4%.
POPULAR OFF-PLAN PROJECTS IN ABU DHABI
Finally, the H2 property market report looks at the top off-plan projects in Abu Dhabi searched by Bayut users. In H2 2018, it’s clear that luxury projects in well-known areas attracted attention from potential investors.
In Yas Island, the low-rise apartments in Ansam received the most interest, bringing in 32.9% of the searches. Make an informed decision before investing by reading up on Bayut’s Yas Island overview. Jawaher Saadiyat was most popular with those looking to buy off-plan property in Saadiyat Island, while Shams Abu Dhabi had the lion’s share of searches in Al Reem Island.
forecast for the next year
Haider Ali Khan, CEO of Bayut, said:
“Similar to Dubai, Abu Dhabi is still a favourable market for investors and tenants. Property prices in the capital city remain on a downtrend that continues from H1 and Q3. However, as the price changes have remained marginal, it heralds the possibility of a change in investor outlook in the emirate. The new visa reforms and changes to the foreign ownership system will also impact the dynamics of the Abu Dhabi real estate market, and should see property sales pick up in 2019. We can also witness an uptick in the launch of new developments including some luxury projects across town, which reflects investor trust in the emirate, and further strengthens the belief of a more stable market in the coming year.”
And that brings an end to Bayut’s market report for property prices in Abu Dhabi in H2 2018! Also, take a look at our Dubai Market Report to see how the buzzing city’s real estate market has evolved over H2 2018. Keep an eye out for our Sharjah and Ajman real estate reports to see how these markets have fared! And follow MyBayut, for more in-depth reports and updates in the Abu Dhabi real estate market.
Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Dubai.
