The quarter one 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 definitely steals the show with exceptionally increased demand in Q1 of 2017, while Al Ghadeer, Al Reef Dowtown and Villas as well as Khalifa show a stable increase in demand. However, areas such as Al Raha Beach, Hydra Village and Abu Dhabi Island show a slight decrease in demand in Q1 of 2017.
The leasing trend by apartment type is facing an interesting move from the studios towards the 1 bedroom apartments and the decline in the 2 bedrooms is gained in the 3 bedroom apartments. The 4 bedrooms plus remains stable and its tenants are more insensitive to the market fluctuations.
The overall trend for the villas is seeing interesting shifts in demand with a clear decline of the 2 bedrooms towards the 3 bedroom villas. On the other hand, the 4, 5 and 6 bedroom villas are sticking to the same popularity toward a slight increase, mostly observed for the 4 and 6+ bedroom villas.
Moving 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, it has passed the highs seen in Q1 of 2016.
Al Ghadeer, Al Raha Beach, Al Raha Gardens, Al Reef Villas, Golf Gardens, Hydra Village and Khalifa are showing some increases in sales.
Abu Dhabi, is facing a high slowdown in terms of sales, Al Reef downtown remains stable toward a small decline, and Yas Island shows a small drop after the booming of the new projects launched in 2016.
The real estate market trends by apartment type reveal a stable progression, and only shows signs of decrease amongst the 2 and 3 bedroom units in Q1 of 2017. The Studios, 1 and 4 bedroom units have shown a stable increase in Q1 of 2017.
The market shows two categories of buyers. One is investors or single end users which are mostly opting for the studios. The second type is users which are purchasing big properties of 4 plus bedrooms.
Moving on to the sales trends by villa type, the statistics show drastic differences amongst 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 Q1 being compared to the previous quarters, overtaking the 2 bedroom and 3 bedroom villas.
The 4 bedroom villas show a small decrease in Q1 of 2017.
The results show a small drop in sales, but stable since Q3 2016. The real estate market flow for leasing have seen a clear slowdown in Q4 216 but it’s getting better in Q1 2017.
The overall real estate market is facing a slowdown; however, a considerable number of units are being injected in the market targeting both investors and end users.
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 high rental income for the existing projects.
The property prices are forecasted to increase back in HY2, 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.
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