Abu Dhabi's emerging communities, including Al Ghadeer and Al Reef, witness increase in sale price per sq. ft. compared to Q1 2015

Al Reem, Abu Dhabi, recorded a decrease in sale price per sq. ft. of 4%, and 5% increase in rental price for one-bedroom apartments, highlighting them as attractive investment options for higher rental yields gains

Abu Dhabi Corniche experienced a 10% decrease in rental prices of one- and three- bedroom apartments

Al Furjan, Dubai, revealed as the only community from 15 analyzed communities to have witnessed an increase in sale price per sq. ft. (2%). Al Furjan has also experienced a 13% rise in one-bedroom rental prices

Dubai, UAE. 12 April 2016

dubizzle - the UAE's leading property classifieds platform - reveals an increase in sale and rental prices of properties in emerging communities across Abu Dhabi and Dubai in Q1 2016. A decrease in older, more established communities was also reported when compared to Q1 2015.

The report highlights an increase in demand for housing in in-land communities, with property sale prices in Abu Dhabi's Al Ghadeer and Al Reef increasing by 3% and 4% respectively.

Rental prices for one- and two-bedroom apartments in Al Reef also increased by 9% each. Three bed-room apartments experienced the largest increase in demand, recording an 11% hike in rental prices from AED 135K to 150K, which indicates the need for larger family homes that offer a community lifestyle.,

"Despite witnessing an increase of 4% in sale prices from Q1 2015, Al Reef is still one of the most affordable communities in which to buy, with a sale price per sq. ft. at AED 860, making the community a solid option for potential investors," said Ann Boothello, Product Marketing Manager for Property at dubizzle

Similarly, Al Reem Island has also experienced an increase in rent prices by 5% for one-bedroom apartments. However, sale prices for one-bedroom apartments experienced a drop per sq. ft. by 4%, now selling at AED1350 per sq. ft.. This highlights it as a community to invest in, with the potential of increasing rental yields over time.

Whilst the Q1 2016 report reveals an increase of prices in in-land communities, a drop in prices in more central areas has also been recorded - for example, a 10% decrease has been reported in one- and three- bedroom apartments in the Abu Dhabi Corniche compared to Q1 2015.

"As we see real estate becoming more affordable in central communities, the price increase in less central and established areas indicates that the capital is more family-oriented and people are seeking larger spaces for less. Areas such as Al Reef offer an environment that has more of a community feel from children's' play areas, to day-time flea markets and mum meet ups - despite it being further out from the Abu Dhabi's city centre, families are being drawn to such communities," added Boothello.

In line with the findings in Abu Dhabi, the report reveals that Dubai's Al Furjan experienced a hike in rental prices for one-bedroom apartments by 13%. The sale price per sq. ft. in the same area also experienced subtle 2% increase. Both price shifts indicate demand for larger, newer spaces that are more affordable.

Sale and rental price shifts in communities such as Jumeirah Village Circle indicate higher rental yields for those considering to invest in property - with the sale price per sq. ft. having declined by 4% to AED 894, and rental prices increasing by 3%. These figures suggest that such areas will provide increasing rental yields as the infrastructure develops to provide self-contained districts.

"While Sheikh Zayed road is the main artery of Dubai with more developed communities scattered along it, we are now seeing a gradual shift in property purchasing and rental behavior towards newly developed areas located further in-land," commented Boothello, "As the infrastructure of these up-coming communities nears completion, roads such as Al Khail and Mohammed Bin Zayed allow for easy access to the Dubai hot-spots located nearer to Sheikh Zayed road."

In contrast to the increase in prices in upcoming areas, the sale price for properties in more established and mature locations - including Business Bay, Dubai Marina, Downtown Dubai and Jumeirah Lake Towers - have experienced a decrease per sq. ft. by 8%, 8%, 9% and 10% respectively. Similarly, Business Bay has experienced a decrease of 5% in rental prices of one-bedrooms, and 4% for two-bedrooms, with the rental price for three-bedrooms remaining unchanged.

Erik Volkers, Associate Director, CBRE UAE, said, "We expect average residential sales prices in Dubai to further decline over the course of 2016. Despite this trend in sales prices, rental rates have remained relatively stable in Dubai, especially for apartments. In 2016 we expect rents to be under pressure. As a result of a flight to affordability we expect rental rates in more affordable areas such as Al Furjan, International City, Jumeirah Village Circle, Discovery Gardens and Dubailand to see potential growth. More prime areas such as Dubai Marina, Palm Jumeirah and Downtown Dubai are already seeing rental deflation which is expected to continue at least in the first half of 2016. For tenants currently leasing in Dubai this could mean that they are in a stronger position to negotiate a rent renewal or to look for a better lease elsewhere."

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About dubizzle:
dubizzle.com is the leading free classifieds website for users in the United Arab Emirates. Since its launch in 2005, dubizzle.com has become the number one platform for users to buy, sell, or find anything in their community. A community where underused goods are redistributed to fill a new need, and become wanted again, where non- product assets such as space, skills and money are exchanged and traded in new ways that don't always require centralized institutions or 'middlemen'. dubizzle.com is headquartered in the UAE.

dubizzle is an OLX company:
OLX is the world's leading classifieds platform in growth markets and is available in more than 50 countries and over 50 languages. OLX connects local people to buy, sell or exchange used goods and services by making it fast, easy and free for anyone to post an ad through their mobile phone or on the web. Every month, hundreds of millions of people in local markets around the world are already using OLX's online marketplace to find and sell a wide range of products, including furniture, musical instruments, sporting goods, cars, kids and baby items, motorcycles, cameras, mobile phones, property and much more. OLX operates in fast-growing markets around the globe, where OLX helps people improve their lives through smart person-to-person trade. OLX employs more than 1,200 committed employees worldwide located in places like Bangkok, Buenos Aires, Cape Town, Delhi, Jakarta, Lagos, Lisbon, Manila, Nairobi, Poznan, Rio de Janeiro and São Paulo.

Media enquiries:
Abdallah Touqan
Senior PR & Communications Lead
Abdallah@dubizzle.com 
+971 55 9866 891

Grayling PR
dubizzle@grayling.com
+971 (4) 360 0527

© Press Release 2016