Market Trends

Market Trends


The market report for first quarter 2018 is now released, delivering some interesting figures for investors, buyers, landlords, and tenants.

The leasing trends by Area where Al Reem Island stays stealing the show with an increased demand in Q1 2018, has passed the highest level registered in Q2 2016 and exceeded all trends since Q4 2015.

Al Reef Downtown, Al Raha Beach, and Al Ghadeer have slightly increased in demand. Areas such as Al Reef Villas, Hydra Village, Khalifa City Areas, Abu Dhabi Main Island, and Al Raha Gardens show a slight decrease in Q1 2018.

These variations are explained by the big drop in the rental prices in Al Reem Island, Al Raha Beach and Al Reef. However, areas such as Al Reef Villas, even though the drop is there, its demand did not follow the flow. This might be explained by the move of the Reef Villas tenants to Al Reem Island or Al Raha Beach. A second explanation could be a move towards a wiser decision and purchase a property instead of just paying yearly rentals (figures are explained in the Sales trend section where Al reef Downtown Sales figures have jumped to almost reaching the level back in Q4 2015).

Abu Dhabi’s population is looking at affordable properties where facilities and amenities are provided in addition to an island living and City proximity which explains the jump in demand in Al Reem Island.

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 that fits in the home allowance budget.

The figures issued for the leasing trends by apartment type reflect an overall increase, mostly noticed for the Studios and 2 bedrooms. However, a small decrease in demand is being noticed for the 1 bedrooms and 4+ Bedroom Apartments.

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 profitable future wise – than paying rentals to the landlord.

The leasing demand of the 2 and 4 bedroom villas has a noticeable increase in demand compared to Q4 of 2017, however, the 3, 5 and the bigger units of 6+ bedroom villas faced a drastic drop towards the 2 and 5 bedrooms.

This move can be due to the allowance package revisions mainly for the luxurious and bigger properties, or by acquiring properties and 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 is seeing an important increase compared to the figures shown since one year back.

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 3 bedrooms. The trend shows signs of decrease among the 1, 2 and 4+ bedroom units in Q1 of 2018 with an exceptional drop for the 4+ bedrooms and the demand of the 2 bedrooms remains higher than seen in the same period one year ago.

The property purchasers can have two different behavior in terms of unit size, depending on the purchase purpose. The end users are more queen to purchase 2, 3 and 4 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 and 5 bedroom villas taking the lead in demand.

The smaller villas of 2 bedrooms show a fatal drop in Q1 being compared to the previous quarter, towards the 3 bedroom villas and the 6+ bedrooms towards the 5 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 behaviors. The expatriates respectively prefer the 3 and 2 bedrooms, however, the UAE Nationals 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 a clear increase in trends in both Sales and Rent recorded since Q4 2015.

It’s obvious that the estate market has been facing a slump since HY2 2016; however, great investment opportunities are being injected out there, in the Abu Dhabi Real Estate Market.

A number of well-priced 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 May 2018 for Marina Sunset Bay Villas, Faya in Bloom Gardens, January 2019 for Mamsha Al Saadiyat, Jawaher, Fairmont Marina Residences in October 2018, June 2020 for Al Raha Lofts, April 2020 for the latest phase launched of Alghadeer, and much more that you can discover 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.



2018_مستجدات السوق العقاري بأبوظبي الربع 4_2016 – الربع 1

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