Bayut & dubizzle’s Q1 2021 Abu Dhabi market report for properties for sale

• Affordable Apartment Sales
• Luxury Apartment Sales
• Affordable Villa Sales
• Luxury Villa Sales
• Top Off-Plan Projects

After an unusually challenging year, the dawn of 2021 has brought greater momentum to the real estate market in Abu Dhabi. While the capital has continued to monitor the movement at its borders, the emirate’s real estate sector has shown signs of growing resilience, as reflected by the property prices in Abu Dhabi for the Bayut & dubizzle Q1 2021 real estate market report. 

This rise in prices can be attributed to the growing demand for bigger, permanent homes with an abundance of outdoor spaces. This increase in demand for apartments and villas for sale in Abu Dhabi could also be influenced by the new government announcements about the UAE citizenship law, remote work visa scheme and Golden visa.  

For a detailed understanding of how the residential property sector fared over the past three months, Bayut & dubizzle’s combined sales report examines the changes in Abu Dhabi property prices for Q1 2021.

For an accurate representation of Abu Dhabi property prices, our sales market report details the average price-per-square-foot within each highlighted area. Please note that these prices are subject to change based on multiple factors, including amenities available, the project’s developer, location and other key factors.

We have also further segmented the popular areas for buying apartments and villas into ‘Affordable’ and ‘Luxury’ to offer a more tailored view of the Abu Dhabi real estate market in Q1 2021.

TOP NEIGHBOURHOODS IN ABU DHABI ACCORDING TO TRENDS ON BAYUT & DUBIZZLE

For the Abu Dhabi Q1 sales market report by Bayut & dubizzle, our data analysts have compared the Abu Dhabi Q1 2021 real estate prices for listings on Bayut & dubizzle (excluding room share) with those from Q4 2020 to ascertain common price trends across Abu Dhabi’s real estate market.

Consumer interest in Bayut & dubizzle has shown that investors and homebuyers looking for luxury properties are more inclined towards waterfront, integrated community developments such as Al Reem Island, Yas Island and Saadiyat Island. Suburban districts like Masdar City, Al Reef, Khalifa City A, Shakhbout City and Mohammed Bin Zayed City have also remained popular choices for investors searching for affordable Abu Dhabi properties during Q1 in 2021.

AL REEF RANKS FIRST FOR BUYING AFFORDABLE APARTMENTS

Q1 PROPERTY PRICES IN ABU DHABI TO BUY AFFORDABLE FLATS

Masdar City has taken the top spot as the preferred choice for investors and homebuyers in search of budget-friendly apartments for sale in Abu Dhabi. Located right next to the Abu Dhabi International Airport, it has always been a popular option since it offers sustainable yet cost-effective living to its residents. As per the Bayut & dubizzle Abu Dhabi property market analysis for Q1 2021, the average sales price-per-square-foot for flats in Masdar City reduced slightly by 4.78% from AED 1,220 to AED 1,162 during the first three months.

The asking price for apartments for sale in Masdar City has also decreased from AED 786k in Q1 2021 to AED 736k for 1-bed units. Prices for 2-bed flats in Masdar City have reduced from AED 1.14M to AED 1.07M, whereas the asking prices for studio apartments for sale in the area have increased to an average of AED 521k.

Another area popular among investors and buyers in Abu Dhabi for its competitively priced apartments has been Al Reef. Set on Abu Dhabi’s outskirts, the area offers proximity to Dubai and the happening Yas Island district. Based on the Abu Dhabi property prices observed during Q1 2021, the price-per-square-foot for apartments for sale in Al Reef has averaged at AED 666 after a slight increase of 2.7%. The prices for studio units have averaged at a competitive AED 475k, while the 1-bed and 2-bed flats in the area have been priced at AED 651k and AED 810k, respectively. 

The suburban Al Ghadeer district has also attracted interest from buyers keen on affordable flats in Abu Dhabi. This neighbourhood has experienced a minor increase of 0.42% when it comes to the average price-per-square-foot during Q1 2021. The studio flats in Al Ghadeer have been priced at AED 366k, while 1-bed apartments have been priced at AED 482k, on average. The sales price of 2-bed units have averaged at AED 678k. 

AL REEF OFFERS THE BEST RENTAL YIELDS IN ABU DHABI FOR AFFORDABLE APARTMENTS

Investors in search of affordable flats with high rental yields can consider the competitively priced properties in Al Reef, where the ROI has averaged at 8.18%.

Flats in Masdar City have also delivered healthy rental yield, with an average ROI of 8.15%. The reasonably-priced apartments in Al Ghadeer have also presented good returns for prospective investors in Q1 2021 in Abu Dhabi with projected rental yields of 6.61%.

ISLAND COMMUNITIES GARNER THE MOST INTEREST FOR LUXURY APARTMENT SALES IN ABU DHABI

MOST POPULAR AREAS TO BUY LUXURY APARTMENTS IN ABU DHABI

Al Reem Island has continued to be the top choice with buyers looking to add luxury apartments in Abu Dhabi to their investment portfolio. Our analysis of Abu Dhabi property price trends for Q1 2021 has also revealed that properties in Al Reem Island continued to appeal to buyers for their attractive prices, luxe design, high-end amenities and excellent connectivity.

Apartments in Al Reem Island have recorded a 0.50% increase in average price-per-square-foot, going from AED 990 to AED 995 in Q1 this year. The asking price for apartments for sale in Al Reem Island has also increased across the board with 1-bed apartments going from AED 800k in Q4 2020 to AED 801k in Q1 2021 and 2-bed flats for sale increasing to AED 1.28M from AED 1.27M. The 3-bedroom flats for sale in Al Reem Island have averaged at AED 1.89M in Q1 2021, a slight increase compared to AED 1.77M in Q4 2020.

The second most popular area for expensive apartments in Abu Dhabi has been Saadiyat Island with a price-per-square-foot of AED 1,464, a 1.9% increase from Q4 2020. The prices of apartments for sale in Saadiyat Island have averaged at AED 1.91M for 1-bed, AED 2.66M for 2-bed and AED 4.09M for 3-bed units.

Al Raha Beach and Yas Island have also attracted investors for luxury apartments for sale in Abu Dhabi with minor increases in average price-per-square-foot of less than 2%.

YAS ISLAND OFFERS THE BEST ROI IN ABU DHABI FOR LUXURY APARTMENTS

Based on Bayut & dubizzle’s combined Q1 2021 Abu Dhabi sales report, apartments for sale on Yas Island have offered healthy returns with an average ROI of 6.82%. However, the average ROI for the whole area may vary based on the location, developer, type of unit and the amenities offered.

Other neighbourhoods offering good returns in Abu Dhabi for Q1 2021 have included Al Raha Beach and Al Reem Island, with average ROIs of 6.64% and 6.62%, respectively.

AL REEF RANKS FIRST FOR BUYING AFFORDABLE VILLAS IN ABU DHABI

ABU DHABI PROPERTY PRICES FOR BUYING AFFORDABLE VILLAS

Moving on to the real estate trends for affordable villas for sale in Abu Dhabi, Al Reef has remained the most searched for option by potential buyers and investors. This popular suburb is known for its proximity to Dubai and the Yas Island leisure district. 

Villas in Al Reef have witnessed a mild 3.31% increase in the average sales price-per-square-foot going from AED 640 in Q4 2020 to AED 661 in Q1 2021. The asking prices for villas for sale in Al Reef have also increased across the board, with 3-bed villas priced at AED 1.54M and the 4-bed units selling at AED 2.06M, on average. The price for 5-bed villas for sale in Al Reef has also increased from AED 2.36M in the previous quarter to AED 2.37M in Q1 2021.

Known for its reasonably-priced larger units, Shakhbout City (Khalifa City B) has also gained traction among home buyers with tighter budgets. The price-per-square-foot for villas for sale in Shakhbout City has stayed competitive at AED 395 for this quarter. However, this neighbourhood’s inventory has been more limited, with smaller units going off the market quickly. For those keen on larger units in the area, the 5-bed villas have averaged at AED 6.23M.

Based on the property trends in Abu Dhabi for Q1 2021, other areas that have drawn attention from investors seeking affordable villas included Mohammed Bin Zayed City and Khalifa City A, where the average price-per-square-foot for homes is AED 514 and AED 650, respectively.  

SHAKHBOUT CITY (KHALIFA CITY B) OFFERS THE HIGHEST ROI IN ABU DHABI FOR AFFORDABLE VILLAS

Investors looking for high rental yields on affordable villas can explore the options in Shakhbout City (Khalifa City B) which has offered an average ROI of 9.43%.

Affordable villas in Mohammed Bin Zayed City and Al Reef have also offered good rental yields of 7.42% and 6.56%, respectively.

YAS ISLAND IS THE MOST POPULAR CHOICE TO BUY LUXURY VILLAS IN ABU DHABI

ABU DHABI PROPERTY PRICES FOR LUXURY VILLAS

Following on from the trends seen across 2020, Yas Island has remained the most popular district for homebuyers searching for luxury villas in the capital.

The price-per-square-foot for luxury villas in Yas Island has seen an uptick of 4.18%, with 4-bed units averaging at AED 4.78M, 5-beds at AED 6.2M and 6-bed homes at AED 8.14M. While prices for the 4 and 6-bed units increased in line with the change in price-per-square-foot, the 5-bed villas in Yas Island have become more affordable.

Saadiyat Island has ranked second when it comes to popular neighbourhoods with high-end villas for sale in Abu Dhabi. The price-per-square-foot for high-end villas for sale in Saadiyat Island has experienced a slight decrease of 0.64%, going from AED 1,368 in Q4 2020 to AED 1,358 this quarter. The average sales price for 4-bed villas in Saadiyat Island has remained affordable at AED 7.2M, while the larger 5-bed and 6-bed homes in Saadiyat Island have also stayed stable at AED 11.3M and AED 15.8M on average, respectively.

Luxury home buyers have also considered the villas in Al Raha Gardens where the average price-per-square-foot has decreased by 0.4% to AED 834. The 4-bed villas for sale in Al Raha Gardens, Abu Dhabi have remained fairly steady at AED 2.9M, while the prices for 5 and 6-bed villas have averaged at AED 3.9M and AED 4.5M, respectively, in Q1 2021.

AL RAHA GARDENS OFFERS THE HIGHEST RENTAL RETURNS FOR LUXURY VILLAS IN ABU DHABI

Al Raha Gardens has become a good option for investors keen on luxury buy-to-let villas in the capital, offering rental yields as high as 5.76% as per the data gathered for Bayut & dubizzle’s Q1 2021 real estate market report in Abu Dhabi. The high-end villas in Yas Island have also offered healthy rental yields of up to 5.55%.

TOP OFF-PLAN PROJECTS IN ABU DHABI

MOST POPULAR OFF-PLAN APARTMENTS IN ABU DHABI

For the first quarter of 2021, the most searched for off-plan apartment projects have been located in waterfront areas like Al Reem Island and Yas Island. The sustainable urban development of Masdar City has also gained traction among potential buyers looking for reasonably-priced off-plan flats in Abu Dhabi.

Based on the data collected for our Q1 2021 Abu Dhabi real estate market report, Diva in Yas Island has taken the top spot when it comes to interest in affordable off-plan flats. The apartments for sale in Diva come in studio, 1, 2, and 3-bed configurations and have a starting price of AED 299k.

On the luxury front, investors interested in upscale off-plan flats in Abu Dhabi have been more inclined towards premium waterfront projects like Saadiyat Cultural District on Saadiyat Island, Water’s Edge on Yas Island and Makers District on Al Reem Island. Apartments for sale in Saadiyat Cultural District are priced as low as AED 2.07M.

TOP OFF-PLAN VILLA PROJECTS IN ABU DHABI

Investors exploring budget-friendly off-plan villas in Abu Dhabi have shown an interest in Noya, Yas Island. Another affordable off-plan villa community that has garnered interest from prospective buyers and investors in Q1 2021 is Al Ghadeer Phase II.

Off-plan villas for sale in Noya, Yas Island are available in 2, 3 and 4-bedroom layouts with a starting price of AED 1.5M. Al Ghadeer Phase II on the other hand has 2-bed villas for as low as AED 1.1M.

Regarding more upscale off-plan villa projects in Abu Dhabi, investors have shown considerable interest in the off-plan villas for sale in Yas Acres, Yas Island, Abu Dhabi. The off-plan houses in the Saadiyat Cultural district have also gained popularity in the first quarter of 2021. 

Please note that the areas mentioned above may have multiple projects or phases, some of which may have been completed and handed over.

Commenting on the trends, Haider Ali Khan the CEO of Bayut & dubizzle and the Head of EMPG MENA, said:

“Abu Dhabi’s real estate market has really gone from strength to strength in the last few years, especially since freehold ownership was opened up in 2019. There is an excellent inventory of waterfront, fully-integrated communities with malls, parks, schools and other amenities in the vicinity, making the capital a good choice for those who want to purchase a family-friendly home that they can either live in or gain returns from. The appeal of Abu Dhabi as a safe destination has only grown in the last year, thanks to the emirate’s proactive measures to contain the pandemic and safeguard residents.”

This wraps up our Abu Dhabi Q1 sale market report for 2021. Looking at the property price trends in Abu Dhabi, it is evident that the real estate market in the capital has shown remarkable signs of recovery after a tough year for the industry as a whole.

Besides villas and apartments, prospective buyers interested to invest in Abu Dhabi real estate can explore the popular areas to buy townhouses in Abu Dhabi for a more diversified investment portfolio.

There are freehold areas in Abu Dhabi that offer foreign investors a chance to make long-term investments in the capital city. 

Investors interested in buying properties in Dubai can also gauge market conditions, price trends and area popularity from our detailed Dubai Q1 Sales Report for 2021.

Disclaimer: The above report is based on prices advertised on Bayut.com and dubizzle.com by real estate agencies on behalf of their clients. These prices are not representative of actual real estate transactions conducted in Abu Dhabi.