Market Trends

Market Trends


The quarter two market report 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 exceptional increased demand in Q1 of 2017 and remained on the same level in Q2, Al Ghadeer and Khalifa Villas remained on the same level as well. Areas such as Al Raha Beach & Gardens and Al Reef Villas show a slight increase in demand in Q2 of 2017. However, Abu Dhabi, Al Reef Downtown, and Hydra Village show a slight decrease in leasing.

These variations are explained by the move toward more luxurious and bigger units due to the affordability and decline in rental price.

In Al Reef, the community is moving from apartments towards villas, from Abu Dhabi Main Island towards Al Reem and Al Raha.

The figures issued for the leasing trends by apartment type reflect an overall stable market flow but a rising demand in rent for 2 Bedroom units, a stable demand on studios, and a slight decrease in 1, 3 and 4 bedroom apartments as compared with Q1, 2017.

The leasing trend by apartment type is facing an interesting move from the 1 bedroom apartments towards the 2 bedroom apartments, and from the 3 and 4 bedroom apartments in the villas and townhouses. This demand of the 2 bedrooms didn’t happen since the Q4 of 2015. The studio demand remains stable and its tenants are more insensitive to the market fluctuations since the beginning of the Q1 of 2017.

Charts Resize-06The overall trend for the villas is seeing an interesting and noticeable stability of the market. The demand of the 4 and 6 bedrooms has a stable increase since Q1 of 2017. The 3 bedroom villas are facing slight decrease toward the 4 bedrooms, due to the rental price drop.

Charts Resize-07Moving to the sales demand by area, Al Reem Island continuously occupies the biggest chunk of the market in terms of sales, and by the looks of the latest figures, has faced an important decrease comparing to Q1 of 2017.

Abu Dhabi Island, Khalifa, Saadiyat, Yas Island and Hydra Village are showing an interesting increase in sales, meanwhile, Al Reef Downtown, Al Raha Beach, and Golf Gardens show some decrease in sales.

From these figures, we can understand that most of the buyers’ population behavior is towards investment, as most of the properties acquired in these areas are still off plans. Just a small population of end users are going for Al Reef Villas because of the juicy prices offered this period on the market.

The sales real estate market trends by apartment type reveal a stable progression, and only shows signs of decrease among the 4 plus bedrooms units in Q2 of 2017. The Studios, 1 and 2 bedroom units have shown a noticeable increase in Q2 of 2017.

Charts Resize-04Moving on to the sales trends by villa type, the statistics show drastic differences among the properties with 2 and 3 bedroom villas continuing to take an obvious decrease in figures.

The bigger units of 5 and 6 bedrooms show an outstanding progression in Q2 being compared to the previous quarter, overtaking the 2 bedroom and 3 bedroom villas.

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

Charts Resize_The overall results show a tiny drop in both sales and leasing but quite stable since Q4 2016.

The estate market is facing a slowdown; however, a considerable number of units are being injected in the market targeting both investors and end users.

Charts Resize-01The 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 high rental income for the existing projects.

The property prices are forecasted to increase back in HY3, 2017. It will be the good time to invest in off-plan projects as the prices will almost double 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 2017 for Hidd Al Saadiyat, then July 2017 for Marina Sunset Bay Villas, December 2017 for Faya by Bloom, January 2018 for the Fairmont Marina Residences and so on.

UAE Abu Dhabi Property Market Favorable For Buyers – despite the small dip in the first half of this year, the market represents an attractive opportunity for investors seeking great returns, making Abu Dhabi property market more accessible for buyers than ever before.

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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

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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