Residential prices in Abu Dhabi’s real estate market rose by more than two percent in the second quarter of 2021, the third consecutive quarter of growth, according to new research.
The ValuStrat Price Index (VPI) for capital values in Abu Dhabi’s residential investment zones increased 2.1 percent quarterly to 65.8 points.
This was the first time the VPI has witnessed three consecutive quarters of growth since 2016, aggregating 7.2 percent since the fourth quarter of 2020.
Annually, capital values were 3.9 percent higher as the UAE capital’s residential market continues to recover from the impact of the Covid-19 headwinds of last year.
The weighted average residential value in Q2 was AED819 per sq ft, ValuStrat said in a report.
It added that all properties monitored by the VPI saw quarterly growth in capital values ranging from 1.2-2.7 percent during Q2.
Locations with the highest gains were apartments in Al Reem Island, villas located in Saadiyat Island and Mohamed Bin Zayed City.
The second quarter VPI – Residential Rental Values saw a 4.3 percent quarterly rise and a 4.5 percent annual gain to 77.7 points, the first positive citywide rental increase in five years.
Abu Dhabi’s gross yields averaged 7.4 percent, the report also showed.
According to ValuStrat, the construction of 855 apartments was completed across five projects in Q2, representing 7.3 percent of total forecasted new-build units for this year.
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