Abu Dhabi’s Real Estate Market – Report for Q1 2022

As a family-friendly city and a competitive destination for business and investment, Abu Dhabi has an undeniable appeal to local and international real estate buyers. That being said, although up to 80% of property purchases were previously made by Emiratis or expat residents, Abu Dhabi is now witnessing an increase in demand among investors from France, Germany, Italy, Australia, Austria and the CIS countries. Due to the beneficial property acquisition conditions, the average real estate price here rose by 1.5% in the 12 months to March 2022, according to CBRE. We will take a look at the top real estate trends in Abu Dhabi in Q1 2022, including popular areas for sale and to rent and the benefits of investing in this emirate, among other points.

As reported by the Department of Municipalities and Transport, in the first quarter of this year, a total of 1,722 real estate and purchase deals worth AED 4.35B (USD 1.18B) and 1,582 mortgage transactions were recorded in the emirate, amidst the ongoing recovery of the UAE property market after the COVID-19 slowdown. In total, the value of transactions has reached a whopping AED 11.3B (USD 3B), confirming the status that Abu Dhabi is one of the major real estate destinations in the region. The list of the most popular neighbourhoods (from the highest to the lowest) includes Yas Island, Al Saadiyat Island, Al Reem Island, Khalifa City, Al Raha Beach and Al Shamkha.

As stated by Dr Adeeb Al-Afifi, Executive Director of the real estate sector at the DMT, Abu Dhabi is highly popular for living, working and visiting, owing to a diverse range of property options, world-class services, and outstanding infrastructure. That being said, in March 2022, the Abu Dhabi Residents Office’s (ADRO) announced exclusive commercial perks for Golden Visa holders in order to promote the capital’s economy by strengthening its startup ecosystem and increasing its livability attractiveness. As a result, this residency type now includes discounts on healthcare, hospitality, banking, and more. In particular, the benefits are as follows:

• Exclusive discounts on selected properties and development projects including Pixel and AlJurf by IMKAN.
• Exclusive offers for real estate investors (reduced fixed rates on mortgage) and non-real estate investors (best interest rates on savings accounts) from ADCB.
• 5-year fixed rate mortgage for first-time buyers from FAB.
• Selection of flexible health insurance plans from Salama, NAS and Daman.
• Exclusive discounts and offers on room bookings and F&B purchases in Rotana, alongside an extra 25% discount on all annual memberships.
• Additional discount on the recommended retail price, complimentary window-tint protection, free first year license and registration, free number plates and complimentary delivery to all emirates in the UAE from Abu Dhabi Motors BMW and Abu Dhabi Motors MINI.
• Up to 35% discount on motor, home content and travel outbound insurance in Watania Takaful.

Not forgetting the largest set of reforms and updates to the UAE entry and residency schemes, which will promote an influx of expats into Abu Dhabi. It is particularly worth mentioning that a 5-year green visa, which does not require a sponsor or an employer, and the Golden Visa can be obtained when investing in an off-plan and/or mortgaged property worth at least AED 2M (USD 545K). This ground-breaking move is boosting property demand and may send Abu Dhabi property prices skyrocketing, as more and more people will opt to make the UAE their second home. In addition, the emirate provides excellent conditions for individuals seeking to set up their business thanks to the Masdar, KIZAD, Abu Dhabi Global Market (ADGM), twofour54 and Industrial City of Abu Dhabi (ICAD) free zones

Top Areas for Property Purchase

As reported by the DMT, the average apartment price increased by 1.6% in the year to March 2022, to AED 1,019 (USD 277) per sq. ft. At the same time, the average prices for villas increased by 1.1% to AED 827 (USD 225) per sq. ft. The dominating price trends in Abu Dhabi have revealed a steady demand for luxury properties, particularly in Yas Island and Saadiyat Island. This factor can be connected to the influx of foreign investments after the astonishing success of Expo 2020.

According to Bayut & dubizzle, Al Ghadeer led the areas in terms of affordable real estate transactions with an average price per sq. ft at AED 716 (USD 225). Al Reef followed the lead with the price per sq. ft averaging at AED 754 (USD 205) which is a huge increase of 10.8% from Q4 2021. The top third area was Masdar City, which is a sought-after sustainable community, with the price per sq. ft set at AED 1,236 (USD 336). In terms of ROI, Masdar City is the most attractive option, generating 7.79%, while Ghadeer and Al Reef offer rental yields of 7.15% and 6.95%.

In terms of luxury apartments, Al Reem Island maintains its leading position, with the average price per sq. ft at AED 1,000 (USD 272). Yas Island, known for its stunning leisure offerings, and Raha Beach follow suit, with the price per sq. ft at AED 1,274 (USD 188) and AED 1,223 (UAD 332). At the same time, Al Reem Island has the highest ROI in the emirate for luxury units at 6.67%.

Speaking of affordable villas, it is worth noting the areas of Al Reef, Khalifa City A and Hydra Village. In Al Reef, the price per sq. ft amounts to AED 693 (USD 188), while Khalifa City A and Hydra Village offer AED 676 (USD 184) and AED 508 (USD 138) respectively. The latter area generates the highest ROI for affordable villas at 6.65%.

When buying high-end villas, Saadiyat Island ranked first, with the average price-per-square-foot of villas in Saadiyat Island standing at AED 1,538 (USD 418). At the same time, Yas Island and Al Raha Gardens followed the lead with the price per sq. ft averaging at AED 1,163 (USD 316) and AED 812 (USD 221) respectively. It is worth noting that Al Raha Gardens offers the highest ROI for upscale villas, currently at 5.83%.

Property Launches in Q1 2022

In Q1 2022, Aldar Properties, the largest developer in Abu Dhabi, released Louvre Abu Dhabi Residences, which is the first Louvre-branded project in the emirate. Sold out almost straight after the launch, the new development offers a range of studios, apartments and penthouses overlooking the iconic museum. At the same time, potential homeowners will be treated to a la carte services, a boutique residential cinema and meditation lawns.

Another noteworthy project is Bloom Living by Bloom Holding, which features a range of villas, apartments and townhouses. In total, the all-inclusive community is set to house 4,000 homes, in which residents will have easy access to a town center, several food and beverage outlets, and retail stores. The center will include a healthcare clinic and several other amenities. Not forgetting two international schools to meet the needs of families with children. The first phase of Bloom Living; Cordoba, were snapped up within 4 hours of the initial market launch, illustrating the demand for prime family-oriented developments.

Our real estate agents at Metropolitan Capital Real Estate LLC offer a range of real estate services regarding the sale, purchase, rental, property management, mortgage, legal consultations and more, of real estate. With our help, you will be able to save your time and effort, as we will handle the entire transactions of any complexity. We will help you find your perfect home, negotiate with the seller, collect the required paperwork, and take care of all the necessary operations in the government agencies. On top of that, as we cooperate with many of the major UAE developers, we will be able to navigate you through the latest lucrative offers and promotions.