Property prices in Abu Dhabi grow as demand increases in key areas

House prices in UAE's capital have been steadily increasing, which brings consecutive quarterly gains this year.

In 2021, property sales prices in the majority of residential communities in Abu Dhabi have increased amid higher demand and UAE’s economy continued recover from the effects of the coronavirus pandemic.

The average sales listing price for an apartment in Abu Dhabi rose from USD 313,091 in January to USD 353,982 in July, while he average villa/townhouses sales listing price in the capital jumper from USD 1.1 million to USD 1.2 million during the same period, real estate portal Property Finder reported.

'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.'

Like other global property investment hubs, real estate markets in Abu Dhabi and Dubai have rebounded strongly due to the growing economic activity boosted by pent-up demand and supportive stimulus measures offered by the government. Property sales transactions in Dubai hit a 12-year high in July, while house prices in UAE's capital have been steadily increasing, which brings consecutive quarterly gains this year.

As for apartment sales listings, the top areas in Abu Dhabi in July 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 percent over a six-month period to USD 299,478, in Yas Island by 4.17 percent to USD 340,316 and in Saadiyat Island by 11.64 percent to 792,257, Property Finder said.

In the villa/townhouse segment, Yas Island, Saadiyat Island, Al Reef, Al Raha Gardens, Al Ghadeer and Ghantoot dominated sales listings in July. The average listing price in Yas Island increased by 19.05 percent over a six-month period to USD 1.3 million and Saadiyat Island by 11.47 percent to USD 2.8 million and Al Reef by 11.43 percent to USD 424,715.

Rents, on the contrary, declined in the majority of communities except for Saadiyat Island, Al Reem Island and Yas Island, which have been in high demand, the real estate portal showed. The average apartment rental price in Abu Dhabi fell to USD 18,513 in July from USD 19,057 in January.

Abu Dhabi's authorities have been taking various measures to support the economy of the emirate, including providing rent rebates and reducing business set-up costs by more than 90 per cent to attract more investors and the ease of doing business there.

A few weeks ago, Abu Dhabi's Department of Economic Development announced it was introducing a professional license that would allow foreigners full ownership of businesses related to 604 activities in order to attract more investors and boost the emirate's economy. The professional activities include accounting, training, consultancy, beauty centers, computer and internet network companies, ADDED pointed out.