Market Trends

Market Trends


The market report for HY2­­­ 2019 is now released – delivering interesting figures for investors, buyers, landlords, and tenants.

In the leasing trends by Area, Khalifa City got the highest demand of 24% among the others; its demand showed an 8% increase recorded back in HY1 2019.

Meanwhile, Abu Dhabi mainland and Al Ghadeer shared the second spot with 14%. Abu Dhabi City increased by 5% in demand; however, Al Ghadeer showed a slight decline by 3% compared to the first half-year of 2019.

Al Reef got the third spot accumulating 13% of demand in the leasing trend. Meanwhile, the demand in Al Raha Beach declined by 2% compared to the data recorded in HY1 2019. On the other hand, Al Reem recorded 12% showing a major drop in demand with 13% in contrast with the previous quarter.

Furthermore, Al Raha Gardens, Yas Island, Saadiyat, and Hydra Village got 5%, 4%, 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 stability in demand, mostly noticed for the 2 bedroom, studio, and 4+BR apartments.

The 1 bedroom apartments got the highest demand having 36% despite facing a decline of 3% compared to the previous half-year. Meanwhile, 2 bedroom apartments remained quite the same with 29% despite their 1% cut. The studio apartments, on the other hand, escalated with 2% in demand, garnering 21% in the second half-year. Moreover, the demand for the 3 bedrooms gained 1% on demand, and the 4 bedroom apartments remained the same as the data recorded back in HY1 2019, having a demand of 13% among the other types.

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 more 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 34% this quarter.

The 4 and 5 bedrooms got 22% and 17% of demand, respectively; compared to the data recorded in HY1 2019, the demand for 4 bedrooms showed a drastic drop of 8% while the demand for 5 bedrooms increased by 2%.

On the other hand, the 2 bedroom villas faced a slight decrease of 1% accumulating a total of 16% in demand. Meanwhile, 6-bedroom+ villas increased its demand by 3% garnering 11% of demand in total.

Overall, with the continuous drop of rental rates, tenants are now opting to move to bigger units as we can notice the move from the 2 bedrooms toward the 3 bedrooms and the 4 bedrooms toward the 5 and 6+ bedrooms.

The decline in demand of the 4 bedrooms can be explained by the move as explained here above, or by the purchase of a property instead of paying high rent amounts which will be noticed later on in the Sales trends by Villa type.

Moving on to the sales trend by area, Saadiyat showed the highest demand and occupied the biggest chunk of the market garnering 25%, its sales went up by 8% compared with HY1 2019.

Meanwhile, Yas Island surged to the second spot with 22%; its demand increased by 13% compared to the first half-year of 2019.

However, Khalifa City and the surrounding areas garnered 15% in demand and have faced a major drop of 12% in sales.

The demand for Al Reef, on the other hand, increased by 3%, accumulating 11%; next to it is the area of Abu Dhabi Mainland recording 10% of the demand.

The demand for Al Ghadeer showed a slight increase of 2% in contrast with its data recorded back in HY1 2019.

However, the demand in the areas of Hydra Village, Al Raha Beach, and Al Raha Gardens is still quite the same just like the demand in the first half-year of 2019.

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 43%.

The 2 bedroom type of apartments accumulating 24% also remains one of the most demanded apartment types, likewise for the studio apartments with 21%.

Moreover, the sales demand in 3 bedroom apartments got 11% while the 4+ bedroom apartments faced a drop of 5­­­% 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 38% of the sales trend; their demand increased by 1% compared to the previous data recorded in the first half-year of 2019. Meanwhile, the 4 bedroom villas made their way up again after garnering 33%, showing an increase of 11% in demand.

On the other hand, the 6 bedroom villas increased their sales trend by 5% having a total of 11% in demand. Meanwhile, the 5 bedroom villas accumulated 10% of the demand after its sales dropped by 7%.

Moreover, the 2 bedroom villas, showed a drastic drop of 8% in sales having only 9% of demand compared to the previous data.

From this data, we can conclude that the HY2 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 26% this time, gaining 7% of the demand compared to HY1 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 previous years, garnering a total of 21% in the second half-year of 2019 – this has been the highest Leasing demand as of the record between 2015 and 2019.

Indeed, the Real Estate market is slowly making its way up again in the second half-year of 2019 after facing a slump in the previous years.

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, the market is granting them a bigger opportunity to improve their quality of life offering greater options 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 2, 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 2020 such as Pixels in Reem Island, Nudra and Jawaher in Saadiyat, Aljurf in Ghantout, and many more 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  HY1 2016 – HY2 2019 Market Trend Report

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

Check the updated Real Estate Market Prices here

Check the updated Real Estate Off-Plan Projects here

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