Property sales prices in the majority of residential communities in Abu Dhabi have increased in 2021 amid higher demand in key areas as the UAE’s economy continues to recover from the effects of the coronavirus pandemic.
The average sales listing price for an apartment in Abu Dhabi jumped to Dh1.3 million ($353,982) in July from Dh1.15m in January, while the average villa/townhouses sales listing price in the capital touched Dh4.57m in the same month from Dh4.1m in January, listings portal Property Finder said.
“In Abu Dhabi there is an undersupply of villas, which puts the seller at the advantage especially in areas like Saadiyat Island and Yas Island,” said Lynnette Sacchetto, director of research and data at Property Finder.
“We see other areas like Al Reem Island, where an oversupply of units has created a buyer’s market and buyers are at an advantage when it comes to price negotiation.”
Property markets in Abu Dhabi and Dubai, like other global property investment hubs, have rebounded strongly, as pent-up demand and supportive stimulus measures offered by the government boosted economic activity. Property sales transactions in Dubai hit a 12-year high in July while house prices have been registering a steady increase in the UAE capital, recording consecutive quarterly gains this year.
The top areas for apartment sales listings in July in Abu Dhabi were Al Reem Island, Yas Island, Al Raha Beach, Saadiyat Island, Al Reef and Al Ghadeer.
The average listing price in Al Reem Island increased by 15.79 per cent over a six-month period to Dh1.1m, Yas Island by 4.17 per cent to Dh1.25m and Saadiyat Island by 11.64 per cent to Dh2.91m, Property Finder said.
In the villa/townhouse category, Yas Island, Saadiyat Island, Al Reef, Al Raha Gardens, Al Ghadeer and Ghantoot dominated sales listings for the month. The average listing price in Yas Island increased by 19.05 per cent over a six-month period to Dh5m and Saadiyat Island by 11.47 per cent to Dh10.47m and Al Reef by 11.43 per cent to Dh1.56m.
Rents, on the other hand, declined except in communities such as Saadiyat Island, Al Reem Island and Yas Island, which have been in high demand, the listings portal showed. The average apartment rental listing price for a property in Abu Dhabi decreased to Dh68,000 in July from Dh70,000 in January after having remained consistent throughout 2021.
Abu Dhabi has been taking various measures to support its economy, including providing rent rebates and reducing business set-up costs by more than 90 per cent to attract more investors and improve the ease of doing business in the emirate.
Earlier this week, Abu Dhabi's Department of Economic Development said it was introducing a professional licence that would allow foreigners full ownership of businesses related to 604 activities as the emirate seeks to attract more investors and boost its economy. The professional activities include accounting, training, consultancy, beauty centres, computer and internet network companies, Added said.
Abu Dhabi’s economy is expected to grow by 6 per cent to 8 per cent over the next two years, driven by the oil sector, government spending, financial services and foreign direct investment, Mohammed Al Shorafa, chairman of the emirate's Department of Economic Development, said earlier this year.