Market Trends

Abu Dhabi real estate market trends Q2 2020


The market report for Q2 2020 is now released – delivering interesting figures for investors, buyers, landlords, and tenants.abu dhabi market trend q2-2020

In terms of rental demand trends by area, Al Reem Island and Saadiyat Island showed the highest levels of demand in Abu Dhabi for this quarter where Al Reem Island got the highest level by 23% compared to 18% in the first quarter of 2020.

The Al Reef ranked third by 12% – representing an increase of 1% compared to the first quarter of the same year, and Khalifa City and its surrounding areas ranked fourth with 10% – although it witnessed a decrease of 4% compared to the first quarter of the same year.

On the other hand, Al Raha Beach and Al Raha Gardens witnessed an increase in demand by 4% and 1% respectively, while the ratio stabilized in both Yas Island and Hydra Village by 7% and 4%, respectively.

While Abu Dhabi Island faced a slight decrease in demand by 4%, to reach 8% compared to 12% for the first quarter of the same year, to return to the same level witnessed in the fourth quarter of 2019.

The direction of rental demand changed in line with the prices. The price drop stopped somewhat and was replaced by installments throughout the year, ranging from two to monthly payments.

market trend Figures issued for the rental demand trends by type of apartment reflect some stability, with the exception of one-bedroom apartments where the demand decreased by 11% compared to the first quarter of the same year.

The demand for 4-bedroom apartments and studios decreased by 1%. Meanwhile, demand for 3-bedroom apartments remained stable at 15% during the first and second quarters.

In general, the demand remained stable for all types of apartments with the exception of the one-bedrooms where the demand decreased due to the move of tenants from one-bedroom apartments to two-bedroom apartments being within the same prices due to the decrease in the rent price in the region. The demand for renting three-bedroom villas ranked at the highest levels with 32%.

The 6-bedroom villas faced a clear decrease in demand from 16% to 4%. Meanwhile, the demand for the two and five-bedroom villas decreased to 12% for the two bedrooms and 15% for the five bedrooms.

On the other hand, the demand for four-bedroom villas increased by 7% to reach 32%.

Because of the decrease in real estate prices, the tenants shifted and opted for ownership solutions, especially among the tenants of villas consisting of 5 and 6+ bedrooms, which will show in the statistics hereafter related to the real estate market in terms of sales. Moving to the sales trend by area – Al Reem Island, Khalifa City, and its surrounding areas monopolized the highest percentage of demand among other regions of Abu Dhabi, followed by Yas Island and Abu Dhabi mainland with 13%.

Although Al Reem Island and Khalifa City achieved the highest levels of demand, Al Reem Island recorded 16%, while Khalifa City recorded 18%. However, Al Reem Island witnessed a remarkable decline compared to the first quarter of the same year by 6%. Also, the demand for Saadiyat Island decreased by 8% to reach 10%.

Meanwhile, Al Reef Village showed a clear 3% increase in demand to reach the same level of demand that was recorded on Saadiyat Island.

As for Al Raha Beach, the demand remained at the same level, at 3%. In Al-Ghadeer, it increased by 1%.

The demand for Al Raha Gardens and Abu Dhabi Island increased by 4% to reach 7% and 13%, respectively, while Hydra Village gained 3%, bringing the demand to 5%.

However, demand on Yas Island continued to decrease by 1% to reach 13% versus 14% for the first quarter of the same year and 15% to 14% for the last quarter of last year.

From these numbers, we can conclude that the category of real estate buyers is different as some are looking for luxury and others are looking for comfort and affordability. Some buyers are end-users and others are investors in small and medium-sized properties or projects under construction offered at reasonable prices.abu dhabi real estate market trends

Real estate sales market trends by type of apartment reveal a strong demand for one-bedroom apartments, where a continuous increase to reach 36% has occurred in the last quarter.

The type of apartments consisting of two bedrooms increased in demand by 9% in the last quarter to reach 23%, as it monopolized the first rank among other types of apartments in terms of demand.

The demand for studio apartments decreased by 8% compared to the first quarter of this year, to reach 30%.

Moreover, the demand for sales of 3-bedroom apartments decreased by 5% compared to the first quarter to reach 9%. The 4-bedroom apartments remained at the same level as the previous quarter, at 1%.

In general, the one-bedroom apartments received the highest demand, followed by studio apartments, then two-bedroom apartments, then 3 and 4-bedroom apartments, respectively.real estate market trend Moving to sales trends according to the type of villa, the statistics show interesting movements among all types of villas, as 4-bedroom villas achieved 32% of sales demand and remained the highest percentage despite falling 2% compared to previous data recorded in the first quarter of the same year.

Meanwhile, 6-bedroom villas have risen again after 9%, with a 1% increase in demand compared to the first quarter.

On the other hand, the 3-bedroom villas remained at the same demand level, at 26%, as it ranked second after the 4-bedroom villas.

5-bedroom villas also showed a slight decrease of 2% in sales to accumulate 16% instead of 18%. On the other hand, the two-bedroom villas recorded an increase of 3% to reach 17% compared to 14% for the first quarter of the same year, where demand has increased continuously over the past four quarters.

From this data, we can conclude that the type of request varies according to the needs and capabilities of real estate buyers, investors, and end-users. Where the end-users search for the purchase of vast units, and the investors search for the smaller units where the process of earning investment returns is quick, in addition to its selling process is easy – when decided.

In general, the trend of rental demand decreased by 5% of the demand compared to the first quarter of 2020, to reach 59% due to the special circumstances related to coronavirus pandemic and precautions made by the government and the tenants by postponing the dates of termination of the lease contracts and moving from one leased house to another.

Meanwhile, the trend of demand for sales increased significantly by 5% compared to the first quarter of 2020 to reach 41% and return to almost the same level of demand recorded in the last quarter of 2019.

With the continuous decline in rental prices, it is now easy to choose from a number of luxury properties that are available at convenient and affordable prices.

Now, tenants can move to either property of the same size but available at lower prices, or to larger units while adhering to their housing allowance budget. They have more choice and more opportunities to improve the quality of life within the limits of their budget.

On the other hand, the relatively low prices allowed investors to obtain real estate at relatively low prices due to the increase in the number of units available in the market.

abu dhabi real estateFrom this graph, we can conclude that the largest proportion of buyers are end-users. The demand for investment for expatriates decreased by 2% to reach 1% in the second quarter of 2020. However, end-users still show a high demand, especially for UAE citizens, by 20%, making the ratio 61% for citizens who wish to purchase for the purpose of housing. While the demand for real estate for the purpose of investment on the part of the Emirati investors witnessed a noticeable decrease, as the percentage decreased to 3% versus 13% accumulated in the previous quarter, and the demand for the end-users coming for the purpose of housing decreased by a slight rate to reach 34%.

This type of crisis is the ideal period for investing in real estate where the purchase cost is relatively low against a good rental income for existing projects. It is expected that real estate prices will rise again in the first half of 2021. Now is the time to invest in the projects under construction, as well as the bundle of offers and advantages exceptionally offered for this period and for a limited time. The value of the properties will also rise automatically once the COVID 19 period is due, which coincides with the completion of the projects under construction. It is also profitable to invest in existing projects where income is generated and returns are earned instantly upon purchase.

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 2020 such as West Yas, Mamsha Al Saadiyat, Jawaher Al Saadiyat, The Bridges, and many more projects and properties that you can discover on

For more details and to unveil a free consultancy, please call 80014444 or 0509138969.


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

Click here to download the PDF version of Q2 2020

Click here to download the PDF version of Q1 2020

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