Bayut and dubizzle Abu Dhabi Market Report for Q3 2020: Prices remain stable for tenants and buyers

• Apartment sales
• Apartment rentals
• Villa sales
• Villa rentals
• Off-plan projects

As we enter the last quarter of 2020, it’s time to evaluate how the property prices in Abu Dhabi have fared over the last three months.

The data experts at Bayut and dubizzle have conducted a comprehensive analysis of the Abu Dhabi real estate market to understand consumer interest and the demand for residential units in the capital. For this Abu Dhabi market report, the property prices for apartments and villas in Q3 2020 have been compared with prices in Q2 2020 based on the listings advertised on Bayut and dubizzle (excluding room share).

As per the combined data from listings on Bayut and dubizzle, Abu Dhabi property prices have largely remained stable; with very minor fluctuations in Q3 2020. Villas in prominent areas such as Al Reef, Saadiyat Island and Yas Island have even seen a slight uptick in prices pointing to healthy interest for family-friendly homes in the capital. The apartments in most of the popular communities have become more affordable in Q3 2020, maintaining their popularity with both buyers and tenants.

The easing of movement restrictions within the emirate temporarily has further restored confidence in the market. The freehold areas have continued to remain favourites with prospective buyers, whereas potential tenants have been more inclined towards older districts on Abu Dhabi’s main island and suburban areas.

For an accurate representation of Abu Dhabi property prices, our Q3 2020 Market Report compares the average price-per-square-foot for an area when it comes to properties for sale. Please note that these prices can change based on amenities available, the developer involved in the project, location and other key factors. When it comes to the average prices for rental apartments and villas, our real estate market report compares the annual asking rents for Q3 2020 with those in Q2 2020.

* Please note that these prices are subject to change based on the list of amenities available, the developer involved in the project, location and other key factors.

AL REEM ISLAND IS THE MOST SEACHED AREA FOR BUYING APARTMENTS IN ABU DHABI

PROPERTY PRICES FOR BUYING FLATS IN ABU DHABI

For Q3 2020, Al Reem Island has retained its top position as the most-searched-for-area to buy apartments in Abu Dhabi. This upscale island community offers prospective buyers well-maintained freehold, waterfront properties with a healthy return-on-investment of up to 7%, making it a popular choice for investors.

The continued demand for apartments in Al Reem Island has also contributed to stability in terms of prices. The price-per-square-foot remained unchanged in Q3 2020, averaging at AED 967. The property prices for apartments in Al Reem Island have remained largely competitive, with studio flats averaging at AED 532k. In contrast, 1-bedroom apartments and 2-bedroom units have an average sales price of AED 800k and AED 1.25M, respectively.

Potential investors in search of apartments for sale in Abu Dhabi have also shown interest in the trendy and upscale Al Raha Beach community. This residential community boasts an impressive portfolio of high-end waterfront apartments that offer proximity to other popular districts such as Yas Island and Khalifa City A. The average price-per-square-foot for apartments in Al Raha Beach has decreased by a marginal 0.4% to AED 1,160.

As per Bayut and dubizzle’s combined data for property prices in Abu Dhabi, the average cost to buy studio flats in Al Raha Beach has averaged at AED 920k in Q3 2020. The average prices for 1-bed flats in Al Raha Beach have increased slightly from AED 1.12M to AED 1.15M, while the prices for 2-bed units have remained steady at AED 1.6M.

Prospective homeowners have also been interested in apartments in Al Ghadeer. Freehold districts like Yas Island, Masdar City, Saadiyat Island and Al Maryah Island have also held the interest of investors for apartment sales in Abu Dhabi. The average price-per-square-foot for all of these prominent districts have witnessed marginal declines under 3% except for Al Ghadeer, where prices have increased marginally.

AL REEF HAS THE HIGHEST ROI FOR APARTMENTS IN ABU DHABI

Based on our analysis of trends on Bayut and dubizzle, Al Reef has offered the best ROI for ready apartments in Abu Dhabi. This mixed-use district in proximity to the Abu Dhabi International Airport offers a quaint suburban lifestyle and rental yields averaging at 8.5%.

Other districts offering healthy rental returns include Al Ghadeer, it offers an average ROI of 7.7%. Yas Island and Al Reem Island offer average rental yields of 7%.

AL REEM ISLAND RANKS AS THE MOST POPULAR NEIGHBOURHOOD FOR RENTAL APARTMENTS IN ABU DHABI

ABU DHABI PROPERTY PRICE TRENDS FOR RENTING APARTMENTS

Al Reem Island has also been the top choice for tenants in search of flats for rent in Abu Dhabi. The swanky locale has an abundance of family-friendly amenities including parks, schools, malls and other commercial hubs that make it an ideal neighbourhood for both working professionals and families.

As per our analysis of property prices in Abu Dhabi, the average asking rents for apartments in Al Reem Island has witnessed marginal declines in Q3 2020. The average rent for studio apartments in Al Reem Island has gone down from AED 45k to AED 44k. Similarly, the average rent for 2-bed flats in Al Reem Island decreased by 2.4% to AED 83k. The rent for 1-bedroom flats has remained unchanged; averages at AED 60k in Q3 2020.

Potential tenants have also been more inclined towards rental apartments in Al Khalidiya. One of the older, well-established districts in Abu Dhabi, Al Khalidiyah offers residents convenient access to malls, parks and the popular corniche. The asking rents for apartments in Al Khalidiya have averaged at AED 27.5k for studios, AED 50k for 1-bed apartments and AED 64k for 2-bed flats during the third quarter.

Abu Dhabi’s real estate trends for Q3 2020 has shown that tenants are also interested in established neighbourhoods like Al Muroor, Hamdan Street, Corniche Area and Al Nahyan for renting apartments in Abu Dhabi. The suburban districts of Khalifa City A and Mussafah have also appealed to potential renters. Most of these areas have displayed stability in prices, with modest fluctuations of under 5% for most popular bed-types.

Other areas in the Abu Dhabi real estate market that tenants have considered for rental apartments include Al Raha Beach and Tourist Club Area (TCA), also known as Al Zahiyah.

AL REEF IS THE MOST POPULAR CHOICE FOR PURCHASE OF VILLAS IN THE ABU DHABI PROPERTY MARKET

ABU DHABI PROPERTY PRICES FOR VILLAS FOR SALE

As for property trends for villas for sale in Abu Dhabi, Al Reef has remained the most popular neighbourhood among investors. This affordable community, developed by Al Manazel Real Estate, has been steadily sought-after by home buyers due to its budget-friendly properties, proximity to the airport and convenient access to the E11 highway.

Consistent with this demand, the villas in Al Reef have also seen the average price-per-square-foot increase by 2.2% to AED 599 in Q3 2020. Those looking to buy villas in Al Reef can expect to pay an average of AED 1.35M for 3-bedroom homes, AED 1.85M for 4-bed villas and AED 2.2M for 5-bed units, on average.

Prospective buyers have also shown a keen interest in luxury freehold properties in Saadiyat Island. Several high-profile projects have been completed and handed over in the past year, which has strengthened investors’ confidence in Saadiyat Island.

The price-per-square-foot for villas for sale in Saadiyat Island has increased marginally to AED 1,308 in Q3 2020; it was AED 1,305 in Q2 2020. The 3-bedroom villas in Saadiyat Island have an average sales price of AED 4.2M while the larger 4-bed and 5-bedroom villas in Saadiyat Island have average prices of AED 7.41M and AED 12.5M, respectively.

Other areas that have been popular when it comes to the villas for sale in Abu Dhabi include Yas Island, Mohammed Bin Zayed City and Shakhbout City (Khalifa City B).

VILLAS IN MOHAMMED BIN ZAYED CITY OFFER THE BEST RENTAL RETURNS IN ABU DHABI

The budget-friendly villas for sale in MBZ City has also offered impressive rental yields of up to 8.8% in Q3 2020. Investors looking for high rental returns on buy-to-let villas can consider Shakhbout City (Khalifa City B), which offers an average ROI of 8.7%. The villas in Al Reef have also offered good rental yields of up to 7.2%.

MOHAMMED BIN ZAYED CITY IS THE TOP AREA FOR VILLA RENTALS IN ABU DHABI

REAL ESTATE TRENDS IN ABU DHABI FOR RENTING VILLAS

According to the data collected for our Abu Dhabi real estate market report, Mohammed Bin Zayed City has continued to be the most popular option among prospective tenants in search of villas for rent. This suburban district offers spacious and affordable family villas with ample amenities in proximity.

The rent for villas in MBZ City has remained steady overall. Rents for 3-bed villas average at AED 90k. For 4-bed homes, the rent averages at AED 120k. The larger 5-BHK villas in MBZ City witnessed a 7.1% increase in rent, standing at AED 150k in Q3 2020. This perhaps is because of the increased interest in larger family homes as an aftermath of the pandemic.

Khalifa City A has been the next most popular choice for prospective tenants interested in renting villas in Abu Dhabi. The rent for 4 and 5-bed houses in Khalifa City A have remained stable, averaging at AED 140k and AED 160k, respectively. On the other hand, the 3-bedroom villas for rent in Khalifa City A have experienced an 8.3% increase, averaging at AED 130k in Q3 2020.

In the Abu Dhabi housing market, potential tenants have clearly leaned towards suburban, off-island communities such as Al Reef, Al Samha and Shakhbout City. The prices for villa rentals in these communities have remained largely stable as well.

Established neighbourhoods such as Al Mushrif, Al Muroor and Al Karamah along with the waterfront districts of Al Bateen and Yas Island have also featured in the list of top areas to rent villas in Abu Dhabi.

TOP AREAS WITH OFF-PLAN PROPERTIES IN ABU DHABI

Prospective buyers looking for off-plan projects in Abu Dhabi have continued to favour popular areas such as Yas Island, Al Reem Island, Al Maryah Island and Masdar City. These freehold areas in Abu Dhabi offer an integrated, modern lifestyle, as well as attractive and flexible payment plans.

In Q3 2020, investors have shown the most interest in apartments in Water’s Edge in Yas Island. Other prominent projects for off-plan apartments in Abu Dhabi include Al Maryah Vista in Al Maryah Island, the Makers District in Al Reem Island and The Gate in Masdar City.

Villas in Al Jurf Gardens, Al Jurf garnered the most interest from those looking for off-plan villas in Abu Dhabi. These luxury villas have access to private beaches, along with other community and retail facilities.

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 property market report for Q3 2020. Clearly visible from the property price trends, the Abu Dhabi’s property market has shown signs of stability and even recovery over the last three months.

Commenting on the trends, Haider Ali Khan, CEO of Bayut and dubizzle, said:

“Over the last three months, the Abu Dhabi real estate market has shown promising signs of recovery. The overall market conditions have also become more stable in the last three months, and businesses across the board are returning to normal operations. The footfall in malls, restaurants and recreational facilities have increased in the last few months. This has definitely had a direct impact on interest in the capital city’s real estate market. In fact Aldar recently revealed that they have achieved around $270 billion in off-plan sales alone. These are certainly impressive figures, and they also echo the trends we have observed on Bayut and dubizzle. In the last three months alone, we received a combined total of approximately 4.5 million sessions for listings in the capital alone, showing that there is a healthy demand for real estate in Abu Dhabi.” 

Our Dubai property market for Q3 2020 can also help prospective investors and tenants to get an insight into the property prices in popular areas in the neighbouring emirate.

Follow the Market Trends section on MyBayut for our upcoming reports on the Ajman and Sharjah real estate markets.

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.