Market Trends

Market Trends


The market report for Q1 2020 is now released – delivering interesting figures for investors, buyers, landlords, and tenants.

In the leasing trends by Area, Al Reem Island and Khalifa City & its surrounding areas are the most in-demand in Abu Dhabi where these last garner the highest demand of 26% among the others. Al Reem Island has seen a slight decline, while Khalifa City has faced a continuous increase in demand.
Al Reef and Abu Dhabi mainland got equally the third spot with 11% – showing respectively an increase of 2% and 4% in demand compared to Q4 2019.
On the other hand, Saadiyat Island has seen a clear increase of 6%, and Hydra Village’s demand has doubled from 2% to reach 4%.
However, Al Ghadeer faced a clear drop in demand of 16% compared to the demand recorded in the previous quarter.
While Al Raha Beach faced a slight decline in demand of 1%, Al Raha Gardens and Yas Island remained at the same level of demand with 5% and 3% respectively.
The rental market is trend is changing in terms of prices. The fall in prices has more or less stopped and has been substituted with the easiness of payments. Landlords are nor more and more offering rent payments in installments over the year ranging from two to monthly payments.

The figures issued for the rent trends by apartment type reflect some stability in demand, except for the 2 bedroom apartments where the demand has raised by 5% compared to the previous quarter.
The demand for studios, one-bedrooms, and three-bedroom apartments decreased by 2%, 1%, and 2% respectively. Meanwhile, the demand for the 4+ bedroom apartments remained stable with 1% over both quarters.
Overall, the demand for the apartments remained stable for all the apartment types except for the 2 bedrooms where the demand has increased due to either people moving from one-bedrooms or from 3 bedrooms to smaller units. We can also understand this through the decrease in demand of the 2 bedroom villas toward 2 bedroom apartment options.

The leasing demand of the 2, 4 then 3 bedroom villas respectively were securing the top spots garnering the highest demand with 25%, 24% and 23% in the last quarter.

The two-bedrooms faced a clear drop in demand descending from 25% to 18%, meanwhile, the three-bedroom villa demand declined by 1% only to reach 22%.

On the other hand, the demand of four and five-bedroom villas increased by 1% to reach 25% and 19% respectively, and the demand of the six-plus bedroom villas has boomed by 6%, moved from 10% demand to 16%.

It’s because of the drop in property rentals that the tenants’ wave has moved from smaller units towards bigger units of 4, 5 and mostly 6+ bedroom villas.
The decline in demand of the three-bedroom apartments can also be explained by the shift from apartment to the villa of 4 bedrooms as the current villa prices are approximate of the same value as previous apartment rates.

Moving on to the sales trend by area – Al Reem Island and Khalifa City its surrounding areas are stealing the show with the highest demand among other Abu Dhabi areas, followed by Saadiyat Island then Yas Island.
Not only Al Reem and Khalifa City shared almost the same spot accumulating 20% and 19% of demand; but also kept the same level throughout the months since October 2019. Same as in Al Raha Beach which demand remained the same with a rate of 3%.
The demand for Saadiyat Island decreased by 21% while Yas Island showed a clear increase of 4% in demand for reaching the level of demand seen in Khalifa City and its surrounding areas.
In the meantime, Abu Dhabi mainland and Al Reef have seen the same trends in demand by moving from 7% accumulated in Q4 2019 to reaching 9% in Q1 2020.
However, the demand in the areas of Al Ghadeer, Al Raha Gardens and Hydra Village decreased by 2%, 1% and 4% respectively accumulating a demand rate of 3%, 2%, and 1%.
From these figures, we can understand that the buyers’ population is mixed as some of them are looking at luxurious properties and others are looking at convenience and affordability. Some of the buyers are end-users and some of the others are Investors in small and medium-sized properties or off-plan projects offered at reasonable prices.

The sales real estate market trends by apartment type reveal a considerable demand for the Studio apartments with 40% accumulating an additional 14% of demand since Q4 2019.
The 1 bedroom type of apartments accumulating 26% also remains one of the most demanded apartment types accumulating an additional 1%.
The 2 bedroom apartments with 23% of demand have dropped by 8% compared to the previous quarter.
Moreover, the sales demand in 3 bedroom apartments got 10% and 6% less the previous quarter, while the 4+ bedroom apartment faced a drop of 1% accumulating only 1% in demand.
Overall, the Studio apartments got the highest demand, followed by the 1 bedrooms, and 2 bedrooms, then the 3 and 4+ bedroom apartments, respectively.

Moving on to the sales trends by villa type, the statistics show curious fluctuations among all types of properties.
The 4 bedroom villas generated 36% of the sales trend and increased by 2% compared to the previous data recorded last quarter.
Meanwhile, the 2 and 5 bedroom villas made their way up again after garnering 13% and 16% respectively, with an increase of 4% and 5% in demand.
On the other hand, the 6 bedroom villas remained at the same level of sales trend accumulating 9% of demand.
However, the 3 bedroom villas, showed a drastic drop of 11% in sales having only 25% of demand compared to its data recorded back in the fourth quarter of 2019 accumulating 36%.
From this data, we can conclude that the Q1 of 2020 has shown the demand is emerging from both property buyers’ profiles, Investors and end-users. The end-users look at purchasing bigger units, however, investors orient their property acquisition toward the smaller units as they opt for the easy and quick returns on investments as well as the easy selling when decided.

Overall, the trend for Sales has dropped by the same ratio of 2% of demand gained in Rent as compared to the previous quarter, to reach 40% and 60% respectively.
The leasing trend is considered as stable as it rose by 2% compared to the previous quarter to reach 60% of total demand.
With the continuous drop of prices in rent, residents can now easily choose from a number of luxurious yet well-priced and affordable properties that are being added in the Abu Dhabi Real Estate Market.
Now that the tenants are opting to move either to properties at a lower cost or bigger units by sticking to their allowance budgets, it offers them bigger opportunities to improve their quality of life-giving with greater choice within their budget.
The relative decrease in property prices – caused by the increasing number of available units on the market – allowed investors to acquire properties with relatively low prices.

From this chart, we can conclude that the market is for end-users. The demand for Investment purposes shrank by 7% to reach 10% in the first quarter of 2020. The end-users, however, are still showing a high demand for both, UAE Nationals and Expatriates. The property demand for UAE National end-users is in the continuous rise, it rose by a big 12% to reach 52% from the property overall demand. Meanwhile, the demand for expatriates has declined by 7% to reach 35%.
This type of recession is the perfect period to invest in real estate where the acquisition cost is relatively low against a good rental income, for the existing projects. The property prices are forecasted to increase back in HY 1, 2021. Now is the right time to invest in off-plan projects as the property value will automatically increase once the projects are handed over. It’s also profitable to invest in ready projects which they start generating income immediately after their acquisition.
A batch of interesting off-plan projects ranging from Apartments, Duplexes to Townhouses and Villas, are listed with Nationwide Middle East Properties with different handover timelines throughout the year of 2020 such as West Yas, Mamsha Al Saadiyat, Jawaher Al Saadiyat, The Bridges, and many more projects and properties that you can discover on

For more details and inquiries, please feel free to call 80014444 or 0509138969.


Click here to download the PDF version of Q1 2020

Click here to download the PDF version of  HY1 2016 – HY4 2019 Market Trend Report

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