Abu Dhabi property prices surged as much as 37 percent in some districts in 2013 amid a shortage of mid-sized family homes in the UAE capital, a new report by dubizzle has found.
The report also found rental prices increase by up to 18 percent in some areas.
Property portal dubizzle said in its latest 2013 price trends report that the biggest increase in property prices in Abu Dhabi last year was for three-bedroom apartments and villas.
Among the biggest jumps, prices for three-bedroom villas in Raha Gardens increased 37 percent to an average AED2.6 million, followed by a 27 percent jump in the price of three-bedroom apartments in Al Reem Island, Tamouh Square (AED2.75m) and 26 percent rise for three-bedroom villas in Al Reef (AED1.68m).
In its analysis, dubizzle said Abu Dhabi had always been noted as an attraction place to live for families seeking a more laid-back lifestyle than that of Dubai.
“The lack of three-bedroom units in the capital in demand by mid-sized families has caused the asking prices to rise over 2013,” it said.
Dubizzle said that Al Reem Island was one of the few modern districts in Abu Dhabi that both offered a “premium lifestyle” and was close to the city centre.
However, it foreshadowed a dip in prices in the near future, with recent announcements by developers Tamouh and Aldar set to add more than 7,000 units, including three-bedroom apartments, to the market in the next 12 months.
“Prices in Al Reem Island should experience a slight dip as more units are pumped into the market,” Ann Boothello, property marketing specialist at dubizzle, said.
The report said Raha Gardens and Al Reef communities, which were on the outskirts of the city, were attractive to families who may send their children to school in Dubai or who may have a member of the household commuting to Dubai for work.
Meanwhile, the report said two-bedroom apartments in Al Khalidiyah recorded the biggest rental price rise of 18 percent from an average AED85,000 a year to AED100,000.
The next-highest rises were one-bedroom apartments in Mohammed Bin Zayed city (AED45,000) and Al Reem Island Gate District (AED90,000), which both recorded a 13 percent price rise.