Abu Dhabi residential communities have seen an increase in sales prices following higher demand in key areas as the country recovers from the repercussions of the recent pandemic.
According to Propertyfinder, the average sales listing price for an apartment in the emirate jumped from AED 1.15M as recorded in January to AED 1.3M in July, while villa / townhouse sales listing price went from AED 4.1M in January to AED 4.57M in July.
“In Abu Dhabi there is an undersupply of villas, which puts the seller at the advantage especially in areas like Saadiyat Island and Yas Island,” Lynnette Sacchetto, director of research and data at Property Finder said.
She adds, ” We see other areas like Al Reem Island, where an oversupply of units has created a buyer’s market and buyers are at an advantage when it comes to price negotiation.”
In general, the UAE property market has rebounded strongly with the suppressed demand and stimulus measures offered by the government to boost its economy.
Top areas for apartment sales listings in July
| Top Areas | Percentage of total | Average listing price | 6-month change |
| 1. Al Reem Island | 37% | AED 1,100,000 | 15.79% |
| 2. Yas Island | 15.90% | AED 1,250,000 | 4.17% |
| 3. Al Raha Beach | 14% | AED 1,800,000 | 2.86% |
| 4. Saadiyat Island | 13.20% | AED 2,915,000 | 11.64% |
| 5. Al Reef | 5.70% | AED 800,000 | 3.90% |
| 6. Al Ghadeer | 4.70% | AED 400,000 | -5.33% |
Top areas for apartment lease listings in July
| Top Areas | Percentage of total | Average listing price | 6-month change |
| 1. Al Reem Island | 24.90% | AED 70,000 | 0.00% |
| 2. Khalifa City | 22.10% | AED 36,000 | -2.70% |
| 3. Al Raha Beach | 8% | AED 111,000 | -7.50% |
| 4. Corniche Road | 5.00% | AED 120,000 | 0.00% |
| 5. Saadiyat Island | 4.40% | AED 145,000 | 3.57% |
| 6. Yas Island | 3.70% | AED 85,000 | -10.53% |
As for villa/ townhouse listings, Yas Island, Saadiyat Island, Al Reef, Al Raha Gardens, Al Ghadeer and Ghantoot dominated in the previous month. The average listing price in Yas Island increased to 19.05% over a six-month period to AED 5M and Saadiyat Island by 11.47% equivalent to AED 10.47M and Al Reef by 11.43% to AED 1.56M.
Abu Dhabi rents have declined, with the exception of Saadiyat Island, Al Reem Island and Yas Island, which have all been garnering high demand. The average apartment rental listing price for an Abu Dhabi property decreased to AED 68,000 in July from AED 70,000 in January after remaining consistent throughout 2021.
The emirate has launched a number of countermeasures to support its economy, some of which were providing rent rebates and reducing business set-up costs by more than 90% to attract more investors and ease business transactions. It was also recently announced that the Abu Dhabi Department of Economic Development is introducing a professional license that allow foreigners full ownership of businesses related to 604 activities.
Over the next two years, Abu Dhabi’s economy is expected to grow by 6%-8% with the oil sector, government spending, financial services and foreign direct investment driving the economy, Mohammed Al Shorafa, chariman of the emirate’s Department of Economic Development, said earlier this year.
