The demand for key properties in the investment zones across Abu Dhabi has grown considerably during the last three months, especially after it was opened for freehold expat property ownership, said a report by UAE real estate portal Bayut.
Investment zones such as Al Raha Beach, Masdar City, Saadiyat Island and Al Reef have garnered most interest with buyers looking at apartments for sale.
Abu Dhabi real estate market offers healthy conditions for home buyers/investors with the sales prices in the capital having taken a positive turn with the prices either holding steady or slightly increasing, stated Bayut in latest Q3 2019 market report.
Properties in Al Ghadeer, one of the new affordably priced neighbourhoods in the capital, also experienced an increase in average price per square foot by 5.5%, indicating that demand for neighbourhoods close to Dubai is continuing to increase, especially among professionals who need to commute between the two cities.
In Q3 of 2019, neighbourhoods like Al Reem Island, Al Raha Beach, Al Reef and Saadiyat Island dominate the investment sector while established suburbs such as Mohammed Bin Zayed City (MBZ City), Khalifa City A, and Al Muroor remain a popular choice for rentals in Abu Dhabi.
In terms of popularity, Bayut’s report shows that Al Reem Island takes the crown as the most preferred area to buy and rent apartments in Abu Dhabi. For villas in Abu Dhabi, Al Reef continues to be the most popular with buyers/investors and MBZ City is the favoured choice for tenants.
These areas have been consistently in demand from the beginning of 2019, and continue to attract tenants and potential homeowners thanks to their favourable prices, appealing location and family-friendly attractions, stated the report.
Bayut said when comparing prices of properties for sale from Q2 to Q3 of 2019, the overall trend shows promising signs of stability; tenants and buyers are showing consistent interest in the same neighbourhoods and prices are staying steady in most popular communities.
A similar trend can be seen for villa sales in Abu Dhabi, as Al Reef and Saadiyat Island still hold the interest of potential investors. The average price per square foot in these areas remain steady with decreases not exceeding 2%, it added.
The rental trend for apartments in the popular areas of Abu Dhabi shows a moderate decline in cost between 2 to 5%. The list of popular areas to rent in the capital continue to include family-friendly areas such as Al Reem Island, Khalifa City A, Shakhbout City and more.
The two-bedroom units in Corniche Road showed decreases of 8.3% with rents dropping from Dh120,000 in Q2 of 2019 to Dh110,000 in Q3.
Rents for 2-bedroom apartments in Airport Street and Al Muroor also experienced a similar 7.7% decline from Dh65,000 to Dh60,000 in both areas. This shows that tenants are negotiating good rents in these popular areas and upgrading to larger units, a trend we have seen continuing on from the beginning of the year.
When it comes to renting villas, units across the board in MBZ City saw marginal increases between 1% - 4%, which is a testament to the area’s continued popularity with families, giving landlords an opportunity to negotiate good rents with tenants, said the report.
When it comes to off-plan properties in Abu Dhabi, developments on Yas Island and Saadiyat Island continue to attract investor attention. Within Yas Island, Yas Acres is the most popular.
As for Saadiyat Island, the off-plan apartments in Park View are the most searched for by users on Bayut.
CEO Haider Ali Khan pointed out that Abu Dhabi had always been an attractive market for both local home buyers and those from the expat community.
"While Emirati and GCC investors dominated the market earlier, expat buyers and investors are also taking advantage of the attractive options in the capital, with the recent announcements of the new laws," he added.-TradeArabia News Service
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