Abu Dhabi recorded 7,474 property transactions worth more than Dh22.51 billion ($6.1bn) in the first six months of the year, as the UAE’s property market continues to rebound from the coronavirus-induced slowdown.
The emirate recorded 3,568 property purchase and sale transactions worth Dh8.9bn and 3,906 mortgage transactions worth Dh13.6bn during the January-June period, Abu Dhabi's Department of Municipalities and Transport said on Friday.
“Through constant and sustained growth in the real estate sector, Abu Dhabi has maintained its standing as a world-class market and investment destination,” said Adeeb Al Afifi, executive director of the real estate sector at the department.
The UAE's property market grew sharply in 2021 as it recovered from the coronavirus-induced slowdown. The trend has continued this year as the country’s economy remains on a strong growth trajectory.
Pent-up demand and improved investor sentiment have also helped to drive property sales, particularly in Dubai and Abu Dhabi, amid the pick-up in economic activity.
The country's economy is set to post its strongest annual expansion since 2011 after it grew by 8.2 per cent in the first three months of this year on higher oil prices and measures to mitigate the impact of the Covid-19 pandemic, according to the UAE Central Bank.
Growth in the first quarter was driven by a sharp increase in oil production, as well as a noticeable improvement in the real non-oil gross domestic product, the Central Bank said in its latest Quarterly Economic Review 2022.
The Arab world’s second-largest economy, which expanded 3.8 per cent in 2021, is expected to grow by 5.4 per cent and 4.2 per cent in 2022 and 2023, respectively, according to the latest projections by the banking regulator.
Economic support measures and government initiatives — such as residency permits for those who have retired and remote workers, as well as the expansion of the 10-year golden visa programme — have also helped to improve market sentiment in the property sector.
In Abu Dhabi, during the first six months of 2022, Yas Island recorded the highest value of transactions, with deals worth Dh1.8bn, followed by Al Saadiyat Island with transactions valued at Dh1.2bn.
Al Shamkha came in third with transactions worth Dh1bn, followed by Al Reem Island with Dh872 million and Khalifa City with Dh310m. Al Raha Beach came in sixth with transactions worth Dh300m.
“As we enter the second half of 2022, we expect to see significant investment opportunities, particularly with the introduction of several new projects that will boost Abu Dhabi's real estate market,” Mr Al-Afifi said.
A host of other major property projects have been announced in the UAE capital this year.
Earlier this month, Aldar Properties launched the Yas Golf Collection, a Dh1.7bn resort-style development that aims to tap into the growing demand for properties on Yas Island. The Abu Dhabi developer also launched apartments at Grove District on Abu Dhabi's Saadiyat Island last month.
Also last month, the Jubail Marina project was announced on Abu Dhabi's Jubail Island with an $11m contract awarded for the new 66-berth Marina in the Marfa Al Jubail community.
Other projects in the capital include Reem Hills on Reem Island, Bloom Living, close to Abu Dhabi International Airport, and the second phase of Imkan's Riviera development on the coast between Abu Dhabi and Dubai.
Residential property prices in Abu Dhabi increased 1.5 per cent in the 12 months to March, a report by property consultancy CBRE showed.