Abu Dhabi property prices, rents fall during Q1

Abu Dhabi property prices, rents fall during Q1

Arabian Business, 6 April, 2019

Property prices and rents in Abu Dhabi have fallen marginally during the first quarter of 2019, according to new research.

Bayut.com’s Abu Dhabi Q1 2019 Property Market Report said a large portfolio of affordable properties has led to a high amount of interest in the Abu Dhabi property market.

It said areas such as MBZ City and Khalifa City A are attracting a significant amount of interest from both tenants and investors, as can be seen from the high volume of searches in these areas.

“A number of factors can be attributed to this positive trend, including delivery of prominent off-plan projects resulting in increased investor confidence.,” said the report.

Bayut said Al Reem Island is highly in-demand for apartment sales offering an return on investment of 6.9 percent while Al Reef continues as the most popular area for villa sales.

The report said the most significant changes for apartments sales were for 1-beds in Al Raha Beach where prices fell by 6.5 percent to AED1.03 million.

For villas, there was a 6.2 percent decrease in sale prices for 5-bedroom villas in Al Reef to AED2.13 million.

Mohammed Bin Zayed City (MBZ City) was identified as the most popular area for both apartment and villa rentals in Abu Dhabi while it also saw the most significant decline of 10 percent for 2-bed homes.

Haider Ali Khan, CEO of Bayut, said: “The Abu Dhabi property market has undergone tremendous changes in the last two years, with several high profile off-plan projects being handed over and more luxury properties entering the market, particularly in waterfront communities such as Yas Island and Saadiyat Island.

“We have also seen a high number of prospective buyers searching for luxury properties in these areas, along with other upscale neighbourhoods such as Al Reem Island.

“Most decreases in the capital have remained modest with changes largely falling within the 5-6 percent margin. Another interesting trend is the increased popularity for communities such as Khalifa City A, Shakhbout City and Al Ghadeer which are all ideally located for those commuting to Dubai.

“We can expect these trends to carry on into the summer, and perhaps even see increases when more handovers are completed in the second half of the year.”