Market Trends

Market Trends


The real estate market report for Q3 2019 is now released – delivering interesting figures for investors, buyers, landlords, and tenants.

In the leasing trends by Area, Al Reem Island remains the most demanded area in Abu Dhabi garnering the highest demand of 24% among the others; its demand remained at the same level recorded back in Q2 2019.

Khalifa City and its surrounding areas got the second spot with 22% – showing an increase of 1% in demand compared to Q2 2019.

On the other hand, Al Ghadeer and Al Reef shared the same spot accumulating 11% of demand in the leasing trend. Al Ghadeer showed a slight drop in the demand with 2% in contrast with the previous quarter. Meanwhile, the demand in Al Reef increased by 1% compared to the data recorded last quarter.

Abu Dhabi mainland got the 4th spot with 10% of demand. Meanwhile, Al Raha Beach, Al Raha Gardens, Yas Island, Hydra Village, and Saadiyat got 8%, 5%, 3%, and 2% in demand respectively.

Whilst rental rates are continuing to fall, tenants are seeing this as an advantage to either look for bigger properties or try to negotiate their contract renewal with a lower amount.

The figures issued for the leasing trends by apartment type reflect some fluctuations in demand, mostly noticed for the 1 bedroom, 2 bedroom, and studio apartments.

The demand for 1 bedroom apartments increased by 16% with a demand of 33% compared to the previous quarter. Meanwhile, despite accumulating a demand of 30%, the demand for 2 bedroom apartments faced a major drop of 10% this time. Moreover, the demand for Studio apartments decreased by 4%. On the other hand, the demand for the 3 bedrooms and 4 bedroom apartments faced a slight decrease of 2% and 1%, respectively.

The leasing trend by apartment type has faced this interesting move due to the rental prices’ continuous drop in the market. First, this allows the population to afford and move to bigger properties; second, tenants became conscious of the fact that owning a property is much profitable on the medium and long-term – than paying rentals to the landlord.

Overall, the demand for the apartments remained high for the 1 bedroom type, followed by the 2 bedrooms, then the studios, 3 bedrooms, and 4 bedrooms, respectively.

The leasing demand of the 3 bedroom villas constantly secures the top spot garnering the highest demand with 35% this quarter.

The 4 and 5 bedrooms got 22% and 18% of demand, respectively; compared to the data recorded last Q2 2019, the demand for 4 bedrooms increased by 2% while the demand for 5 bedrooms increased by 10%.

On the other hand, the 2 bedroom villas faced a drastic drop of 17% accumulating only a total of 13% in demand.

Meanwhile, 6-bedroom+ villas increased their demand by 5% garnering 11% of demand in total.

It’s because of the drop in property rentals that the tenants’ wave is moving towards the bigger units of 4, 5 and 6+ bedroom villas.

Moving on to the sales trend by area – even with the drop in demand and market slowdown – Saadiyat showed the highest demand and occupied the biggest chunk of the market garnering 44% in terms of sales.

Meanwhile, Al Reem and Khalifa City shared the same spot having a 13% in demand; Khalifa City and its surrounding areas faced a major drop of 22% in sales while Al Reem remained the same compared to the previous quarter.

The demand for Yas Island increased by 2% while Abu Dhabi mainland showed a slight decrease of 1% in demand.

However, the demand in the areas of Al Reef, Al Ghadeer, Hydra Village, Al Raha Beach, and Al Raha Gardens is still quite the same just like the demand recorded last quarter.

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 1 bedroom apartments with 46%.

The 2 bedroom type of apartments accumulating 26% also remains one of the most demanded apartment types, likewise for the studio apartments with 17%.

Moreover, the sales demand in 3 bedroom apartments got 11% while the 4+ bedroom apartment faced a drop of 6% accumulating only 1% in demand.

Overall, the 1 bedroom apartments got the highest demand, followed by the 2 bedrooms, and studios, then the 3 bedroom apartments, ­ respectively.

Meanwhile, the demand for the 4+ bedrooms made it to the last spot after facing a decrease in demand.

Moving on to the sales trends by villa type, the statistics show drastic differences among all types of properties.

The 3 bedroom villas generated 45% of the sales trend, however, its demand decreased by 9% compared to the previous data recorded last quarter.

Meanwhile, the 4 bedroom villas made their way up again after garnering 19%, showing an increase of 9% in demand.

On the other hand, the 6 bedroom villas increased its sales trend by 8% having a total of 15% in demand.

However, the 2 bedroom villas, showed a drastic drop of 11% in sales having only 12% of demand compared to its data recorded back in the second quarter of 2019.

Meanwhile, the 4 bedroom villas accumulated 9% of the demand after getting a 9% increase compared to the previous quarter.

From this data, we can conclude that the Q3 of 2019 has switched from Investors to end-users buyers profile. 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 rises again, accumulating a total of 10% this quarter, gaining 4% of the demand compared to Q2 2019.

The Rent demand, on the other hand, found its way to the top as it hit an increase of 8% after facing a major drop in the two previous quarters, garnering a total of 11% this quarter – this has been the highest Leasing demand as of the record between 2015 and 2019.

Indeed, Real Estate is slowly making its way up again in the third quarter of 2019 after facing a slump in the previous quarters.

With the continuous drop of prices, 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 residents are opting to move to properties at a lower cost, this opportunity is giving them more them the opportunity to improve their quality of life-giving them 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.

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, 2020. Now is the perfect time to invest in off-plan projects as the property value will automatically increase once the projects are handed over.

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 2019 such as Meera Towers in Reem Island, West Yas, Mamsha Al Saadiyat, Jawaher Al Saadiyat, The Bridges, and many more that you can discover on


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Click here to download the PDF version of Q3 Market Trend Report

Click here to download PDF file of the Real Estate Market Trend HY1 2016- HY1 2019

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Check the updated Real Estate Off-Plan Projects here

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