Market Trends

Market Trends


The second half-yearly market report of 2017 has now been released, delivering some interesting market figures for investors, buyers, landlords, and tenants.

Starting with the leasing trends by Area where Al Reem Island stays on stealing the show with an increased demand in HY2 of 2017 and almost reached back the highest level registered in HY2 2016 which exceeds all trends since Q4 2015. Abu Dhabi main Island, Al Raha Beach, and Al Raha Gardens have slightly increased in demand. Areas such as Al Ghadeer, Al Reef Downtown, Al Reef Villas, Hydra Village and Khalifa City show a slight decrease in HY2, but still higher than the demand in the HY2 of 2016.

These variations are explained by the big drop in the rental prices in Al Reem Island, however areas such Al Reef, even though the drop is there, its demand did not follow the flow. This might be explained by the drop in property selling price, allowing people to move towards a wise decision and purchase the property instead of just paying yearly rentals (figures are explained in the Sales trend section). Abu Dhabi’s population is looking at affordable properties where facilities and amenities are provided in addition to an island living and City proximity. Tenants are becoming more aware of the real estate lifecycle, they safely calculate and secure the 5% top up on the yearly rentals amount by opting for a less expensive property which allows a safe margin to stick to the allowance budget.

The figures issued for the leasing trends by apartment type reflect an overall stable market flow. However, a small shrink in demand is being noticed for the Studios toward the 1 bedrooms and a bigger move of the 2 Bedrooms towards the 3 and 4 bedroom apartments, as compared with HY1, 2017.

The leasing trend by apartment type has faced this interesting move due to the rental prices continuous drop in the market, one allowing the population to afford and move to bigger properties; second, tenants became conscious of the fact that owning a property is much wiser – Investment and future wise – than paying rentals to landlord.

The leasing demand of the 3, 4 and 5 bedroom villas has a noticeable increase in demand compared to HY1 of 2017, especially the 3 and 5 bedrooms kept a stable increase since HY2 2016. Only the 2 and 6+ bedroom villas faced a drastic drop towards the 3 and 5 bedrooms. This move can be due to the allowance package revisions mainly for the luxurious and bigger properties, or by swapping rentals with installments.

Moving to the sales demand by area – even with the drop and market slowdown – Al Reem Island continuously occupies the biggest chunk of the market in terms of sales along with Abu Dhabi Island. By the looks of the latest figures, Al Reem Island has faced an important decrease compared to the figures shown since the HY1 of 2016.

Abu Dhabi general, Al Raha Beach, as well as Golf Gardens Khalifa City, and Yas Island show an interesting increase in sales, meanwhile, Al Ghadeer, Al Raha Gardens, Al Reef Downtown & Villas, Hydra Village and Saadiyat show some decrease in sales.

From these figures, we can understand that the buyers’ population is mixed as some of them are looking at luxury and others are looking at affordability. Some of the buyers are end users and some of the others are Investors in off-plan projects offered at affordable prices.

The sales real estate market trends by apartment type reveal a considerable demand for Studios and for the bigger units of 4+ bedrooms. The trend shows signs of decrease among the 1, 2 and 3 bedroom units in HY2 of 2017 with an exceptional drop for the 2 bedrooms and the demand of the 1 bedrooms remains higher than seen in 2016.

The property purchasers can have two different behavior in terms of unit size, depending on the purpose. The end users are more queen to purchase 1, 2 and 3 bedroom apartments. Investors, however, their investment preference is respectively for the 1 bedrooms, 2 bedrooms then, studio apartments.

Moving on to the sales trends by villa type, the statistics show drastic differences among the properties with 3 bedroom villas continuing to take an obvious increase in figures, along with the 6+ bedrooms.

The smaller villas of 2 bedrooms show a fatal drop in HY2 being compared to the previous quarter towards the 3 bedroom villas and the 5 bedrooms towards the 6+ bedroom villas.

The 4 bedroom villas remain more or less on the same level.

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

The figures for the Investors behavior are different, where the UAE Nationals have an ascendant preference towards the 2, then 4, 3 and 5+ bedroom villas. The Expatriates, however, are more queen to invest in the 3, 2, and then 4 and 5+ bedrooms.

The overall results show an increase in trends in both Sales and Rents as compared to the HY1 2017, to almost reaching the demand back in HY2 2016.

It’s obvious that the estate market has been facing a slowdown since HY2 2016; however, a smooth increase is being noticed these last six months. A number of affordable properties are being injected 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 HY2, 2018. 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 are listed with Nationwide Middle East Properties with different handover timelines starting December 2017 for Marina Sunset Bay Villas, Faya in Bloom Gardens, Mid of 2018 Mamsha Al Saadiyat, Jawaher, January 2019 for the Fairmont Marina Residences, June 2020 in Al Raha Lofts, and much more that you can see on

The UAE Abu Dhabi Property Market is favorable for Buyers – 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.

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



Click here to download PDF file for Real Estate Market Trends 2016_2017

Click here to download PDF file for Real Estate Market Trends Q3_2017

Click here to download PDF file for the Real Estate Market Trends Q2, 2017

Click here to download PDF file for the Real Estate Market Trends Q1, 2017

Click here to check the updated Real Estate Market Prices and New Projects

Click here to submit a request


Click here to download PDF file for Real Estate Market Overview 2016
Click here to download PDF version of Market Overview_2015
Abu Dhabi Real Estate Market Overview_2014