Property Prices in the UAE’s Capital Remain Favourable To Buyers and Tenants as Suburban Areas and Waterfront Communities Gain Attention

• According to Bayut & dubizzle’s annual report for 2020, residential property prices in Abu Dhabi have shown remarkable resilience, reporting declines of under 10% for properties for sale in most popular neighbourhoods.
• Prospective buyers and investors interested in affordable apartments have focussed their attention on freehold suburbs such as Al Reef and Masdar City, while those looking for upscale flats for sale preferred Al Reem Island. 
• Al Reef has continued to take the lead for affordable villa sales, while Saadiyat Island and Yas Island have maintained their appeal among investors interested in upscale villas. 
• Budget-conscious tenants looking for apartments have also shown a preference for suburban communities and older central neighbourhoods such as Khalifa City A and Al Khalidiyah. Those interested in upscale apartments have searched for luxurious units in waterfront districts such as Al Reem Island and Corniche Area.
• Mohammed Bin Zayed City has remained the top choice for tenants interested in budget rental villas in 2020 and Al Bateen has maintained its popularity among tenants looking for expensive villas for rent.

Properties For Sale In Abu Dhabi

Villas:  

Consumer trends on Bayut & dubizzle for 2020 have indicated that Saadiyat Island has emerged as the top choice for luxury villa sales. 

• The  average price-per-square-foot for villas in Saadiyat Island has decreased by 6%, going from AED 1,437 to AED 1,342 in 2020, making the area more accessible for price sensitive homebuyers. 
• On the other hand, the villas in Yas Island have seen an uptick in the average price-per-square-foot by 7.1%, rising from AED 880 to AED 943. These price fluctuations could be attributed to handovers of more luxurious projects in Yas Island, such as Yas Acres. 
• Al Raha Gardens has seen its price-per-square-foot remain steady, averaging at AED 772 in 2020.

Based on the combined data released by Bayut & dubizzle, the affordable suburb of Al Reef has generated the most interest with buyers and investors keen on reasonably-priced ready villas for sale in 2020. 

• The average sales-price-per-square-foot for villas in Al Reef has experienced a minor decline of 2.4% during 2020, decreasing from AED 625 to AED 608.
• Suburban communities such as Khalifa City A, Mohammed Bin Zayed City and Shakhbout City (Khalifa City B) have also appealed to prospective buyers for competitively-priced villas in the capital city. 

Apartments: 

Prospective buyers have shown a strong preference for island and waterfront communities when it comes to luxury apartment sales, as per consumer preferences on Bayut & dubizzle. 

• Al Reem Island has continued to be the most popular choice for upscale apartments in Abu Dhabi. The ready flats in Al Reem Island have experienced moderate price declines of 5.3%, with price-per-square-foot averaging at AED 969.
• Al Raha Beach, Saadiyat Island and Yas Island have also remained popular options for HNW buyers and investors, observing moderate price declines between 2% to just over 7%.  

Buyers and investors have also shown a preference for suburban neighbourhoods on the mainland for affordable apartments, with Al Reef firmly maintaining the top position. 

• The price-per-square-foot for apartments in Al Reef has decreased by 3.8%, from AED 679 in 2019 to AED 653 in 2020.
• The sustainable community of Masdar City has also appealed to buyers in 2020. The average price-per-square-foot for apartments in Masdar saw minor reductions of 4.4%, averaging at AED 1,073 in 2020.
• The flats in Al Ghadeer have also become more competitively-priced with price-per-square-foot declining by 10.6%.

Rental Yields in Abu Dhabi 

• Al Reef has been yielding average returns of 8.4%, offering the highest ROI for affordable apartments in Abu Dhabi based on projected rental yields. Meanwhile, Al Reem Island has been offering a healthy ROI of 7.1% for investors interested in luxury apartments.  
• For affordable villa properties, investors have reaped returns up to 8.7% in Mohammed Bin Zayed City, while Al Raha Gardens has been offering a good ROI of  6% for luxury houses in Abu Dhabi.

Off Plan Projects in Abu Dhabi 

• According to the data released by Bayut & dubizzle, Harbour Heights has been the  most-searched-for project by buyers and investors interested in affordable off-plan flats, while Water’s Edge has been the first choice for off-plan apartments in the luxury segment. 
• Investors keen on reasonably-priced off-plan villas in Abu Dhabi have focussed their attention on Saadiyat Reserve, while Yas Acres has emerged as the favourite among investors seeking luxury off-plan villas. 

Properties For Rent 

Villas:

As per the combined data from Bayut and dubizzle, Mohammed Bin Zayed City (MBZ) has remained the first choice for affordable villa rentals in Abu Dhabi.

• The asking rents for 3 and 5-bedroom villas in MBZ City have remained fairly stable, averaging at AED 92k and AED 143k respectively. On the other hand, the average rents for 4-bedroom villas in MBZ City decreased by 4.7% to AED 123k in 2020.
• Khalifa City A, Al Reef, Shakhbout City (Khalifa City B) and Al Muroor have also remained popular options for prospective tenants. These areas have experienced minor declines under 8% in rental costs throughout 2020.

When it comes to luxury villa rentals, Al Bateen has generated most interest with tenants, experiencing moderate reductions in asking rents under 11% overall. 

• While the average rents for 4-bed villas in Al Bateen have stayed steady at AED 200k, 5 and 6-bedroom homes have become more affordable in 2020, standing at AED 205k and AED 245k respectively.
• Integrated communities such as Yas Island, Saadiyat Island and Al Raha Gardens have also been sought-after for high-end villa properties in 2020. 

Apartments: 

In 2020, Khalifa City A has been a firm favourite among tenants searching for affordable apartments in Abu Dhabi. 

• The asking rents in Khalifa City A have seen moderate declines between 3% to 15%, averaging at AED 27k for studios, AED 43k for 1-bed apartments and AED 61k for 2-bed apartments.
• Tenants have shown an inclination towards affordable suburbs and older, well-connected neighbourhoods, including Al Khalidiya, Al Muroor, Hamdan Street and Mussafah. These areas have largely observed reductions under 13% in rental costs in line with the market average. 

Al Reem Island has continued to be the favourite for luxury apartment rentals in 2020, experiencing minor reductions up to 5% in asking rents. 

• The average rents for apartments on Al Reem Island have reduced slightly throughout 2020, standing at AED 61k for 1-bed apartments, AED 86k for 2-bed flats and AED 128k for 3-bed homes.
• While the asking prices for rental apartments in Corniche Area and Saadiyat Island have largely remained stable, Al Raha Beach and Corniche Road have become more competitive with prices declining on average between 5% to 15%. 

Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said: “Given the exceptional circumstances we encountered in 2020, it’s remarkable to see how demand has sustained and even grown in the capital. It’s not surprising that rents have become more competitive, considering how price sensitive the market is at the moment, but what is reassuring is the performance of the sales market. Price fluctuations have been extremely controlled, with some high-end areas even recording recovery over the course of the year. This is in part due to the government’s excellent efforts to contain the pandemic and support the real estate sector in Abu Dhabi. 

Similarly, at Bayut & dubizzle, we were able to quickly adapt to the circumstances and focus on how to provide value to our consumers and partners during these challenging times. It’s certainly been a defining year for us; our parent company EMPG became the region’s only homegrown tech unicorn, while our family at Bayut & dubizzle joined forces in our upgraded and extended office in d3.

We’re optimistic about the year ahead, especially since the capital has left no stone unturned in combating the pandemic. The widespread vaccination campaign launched by the Abu Dhabi health authorities has also been critical in cementing the emirate’s appeal among residents and investors.”