Sales and rental prices in Abu Dhabi have shown promising gains in many key communities during early 2021, according to new research by Bayut & Dubizzle.
Its Q1 2021 property market report showed that sales prices for residential property in Abu Dhabi has experienced increases of up to 5 percent in popular neighbourhoods.
Haider Ali Khan (pictured below), CEO of Bayut & Dubizzle and head of EMPG MENA, said: “Abu Dhabi’s real estate market has really gone from strength to strength in the last few years, especially since freehold ownership was opened up in 2019.
“There is an excellent inventory of waterfront, fully-integrated communities with malls, parks, schools and other amenities in the vicinity, making the capital a good choice for those who want to purchase a family-friendly home that they can either live in or gain returns from.
“The appeal of Abu Dhabi as a safe destination has only grown in the last year, thanks to the emirate’s proactive measures to contain the pandemic and safeguard residents.”
Potential investors and buyers in search of affordable apartments have favoured freehold suburban areas like Masdar City and Al Reef, while those interested in luxury apartments have shown a preference towards Al Reem Island, the report noted.
Al Reef has continued to remain the top choice for affordable villa sales, while waterfront communities such as Yas Island and Saadiyat Island have held strong with those interested in purchasing upscale villas.
The report also said prospective tenants with a smaller budget have preferred apartments in suburban communities or centrally-located neighbourhoods such as Khalifa City A and Al Khalidiyah.
On the other hand, waterfront areas like Al Reem Island and Al Raha Beach have remained popular for luxury apartment rentals.
Yas Island continued to hold the top spot with buyers keen on luxury villas, with prices jumping by 4.2 percent since the last quarter of 2020 while Al Reem Island, which saw price declines of over 5 percent, remained the firm favourite to buy upscale apartments in Abu Dhabi.
Saadiyat Island, Al Raha Beach and Yas Island also continued to appeal to high-net-worth buyers and investors, experiencing an uptick in sales price-per-square-foot of up to 2 percent, the report added.
For rentals, Mohammed Bin Zayed City (MBZ) was the most attractive option for affordable villa rentals in Abu Dhabi during Q1.
Asking rents in MBZ City have increased by up to 2 percent across the board for all units.
For luxury villa rentals in Abu Dhabi, Al Bateen garnered the most interest, experiencing declines in rental costs of up to 9 percent overall.
In Q1, Khalifa City A was the top choice for tenants seeking affordable flats while Al Reem Island remained a favourite for upscale apartment rentals and saw minor declines of up to 3 percent in asking rents.
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