Market Trends

Market Trends


The market report for HY1 2019 is now released, delivering interesting figures for investors, buyers, landlords, and tenants backtracked half-yearly from 2016 to 2019.

In the leasing trends by Area, Al Reem Island is still on top, garnering the highest demand of 25% among the other areas. However, its demand had decreased by 4% compared to HY2 2018 and reached the same level recorded back in HY1 2018.

On the other hand, Al Ghadeer had increased by 5% in demand, with only a 1% difference compared to HY1 2018. Meanwhile, the demand in Khalifa City and its surrounding areas dropped by 3%. Moreover, Al Raha Gardens and Al Raha Beach gained 5% and 3% in demand, respectively.  Al Saadiyat and Al Raha Beach showed a slight increase of 1% and 3% respectively in HY 1 2019. However, the demand in the areas of Al Reef and Hydra Village remained the same.

We can notice tenants tend to move from Abu Dhabi Main Land and Al Reem Island toward Al Raha Beach and Gardens, seeking luxury and wider spaces.

Tenants are becoming more aware of the real estate lifecycle; they safely calculate and secure the 5% top up on the yearly rental amount by opting for a less expensive property which allows a safe margin that fits in the home allowance budget.

The figures issued for the leasing trends by apartment type reflect some fluctuations in demand, mostly noticed for the 1 bedroom, studio, and 2 bedroom apartments. The demand for 1 bedroom and 2 bedroom apartments increased by 4% and 2% respectively compared to the second half year of 2018. Studio apartments, on the other hand, their demand decreased by 6%. Meanwhile, the demand for the 3 bedroom apartments remained the same as the data recorded back in HY2 2018 and a small decrease of 1% in demand has been noticed for the 4 bedroom apartments.

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 6+ bedroom villas remained consistent accumulating 8% since HY1 2018. The 3 and 4 bedrooms shared the same spot, garnering the highest demand with 30%. Compared to the data recorded last HY2 2018, the demand for 3 bedrooms decreased by 1% while the demand for 4 bedrooms increased by 8%. On the other hand, the 2-bedroom faced a drop of 7% in demand. Meanwhile, 5 bedroom villas seemed steady with 15% of demand.

Moving on to the sales demand by area – even with the drop in demand and market slowdown – Abu Dhabi showed the highest demand and occupied the biggest chunk of the market garnering 12% in terms of sales followed by Al Reef having 7%,  and Al Ghadeer with 3%. However, the demand in the areas of Al Raha Beach and Al Raha Gardens declined by 5% and 1% respectively compared to HY2 2018.

By the looks of the latest figures, Khalifa City is making its way up having 27% of the demand in sales among the other areas. The demand in Masdar City, Khalifa City, and its surrounding areas increased by 9% as they were in the second year of 2018.  Meanwhile, Saadiyat climbed up to 17% increasing its demand by 6% compared to the previous record. On the other hand, Al Reem is seeing a steady decrease in demand despite having a 15% sales trend; and areas from the Hydra Village and Yas Island also got their demand declined by 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-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. The 2 bedroom type of apartments also remains one of the most demanded apartment types likewise for the studio apartments.

The trends show a 5% increase in demand for 1 bedroom apartments, a slight decrease of 1% for 2 bedroom apartments and 8% decrease for the studios. Meanwhile, the demand for 3 and 4+ bedrooms increased by 3% and 2%, respectively.

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 kept the same overall level throughout the years.

Moving on to the sales trends by villa type, the statistics show drastic differences among the properties of 3 and 4 bedroom villas.

The 3 bedroom villas generated 37% of the sales trend with an increase of 9% compared to the previous data last HY2 2018. Meanwhile, 4 bedroom villas got the second spot garnering 22% despite its 13% decrease in demand. On the other hand, the 2 bedroom villas having 18% of the demand, made its way up again with a 4% increase compared to last year.

The 5 bedroom villas accumulated 17% of the demand after getting a 4% increase compared to HY2 2018. However, the 6 bedroom villas, showed a drastic drop in sales having only 6% of the demand compared to its data recorded back in 2017 and 2018.

For the end users who are looking at purchasing a villa, we can see two different behaviors. The expatriates respectively prefer the 3 and 2 bedrooms, however, the UAE Nationals prefer 5+, 4 then 3 bedroom villas.

The sales trend in Real Estate escalated again after its major drop last second half year of 2018;  exceeding the demand with 26% compared to the data last HY1 2018 with 24%. The Rent demand, however, declined by 3%, but still managed to garner 16% of the demand.

Real Estate is slowly making its way up again in the first half year of 2019 after facing a slump last HY2 2016. A smooth pick up is being noticed accompanied with great investment opportunities being injected out there, in the Abu Dhabi Real Estate Market.

A number of well-priced and affordable off-plan properties are being added into the market targeting both investors and end users; also relatively low prices are being offered for the existing properties.

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

The UAE Nationals – Local End-Users and Local Investors – dominate the biggest portion in terms of purchasing properties with 40% and 24%, respectively. Meanwhile, 21% of the Expats tend to buy a property to live in, and 15% of them are Investors.

The UAE in general and Abu Dhabi Property Market, in particular, is favorable for real estate Buyers and Investors – despite the small fluctuations, the market represents an attractive opportunity for investors seeking great returns, making Abu Dhabi property market more accessible for buyers than ever before.

Through the latest figures, we can understand that the shank of the expatriates is expanding among the overall property buyers in the UAE. Being conscious that Real Estate is one of the best investment solutions which generate the highest returns among other kinds of investments. On the other hand, many projects’ ownership opportunity has been opened to all nationalities, such as the best located and most luxurious project in Abu Dhabi, Marina Sunset Bay, and Fairmont Marina Residences, as well as other very good spots on Yas and Saadiyat Island.

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


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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