Bayut & dubizzle’s 2021 Abu Dhabi Annual Sales Market Report: Steady Growth Recorded in the Capital

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

Our Abu Dhabi Property Sales Market Report 2021 compares average sale prices per sq. ft in popular affordable and luxury areas with 2020, plus rental yields and top off-plan projects. Driven by a rapid vaccination rollout, supportive economic reforms, eased travel restrictions and the widespread rollout of the Golden Investor Visa, Abu Dhabi’s property market has grown, creating more opportunities for investors and homebuyers.

For this report, we have segmented the popular areas for buying apartments and villas into ‘Affordable’ and ‘Luxury’ categories to provide a more tailored view of the Abu Dhabi sales trends as of December 2021.

Data sourcing & analysis: All prices in this report are quoted in AED. Asking prices by area and bed type, as well as gross rental yields, are based on average listing prices and rents on Bayut.com and dubizzle.com. The analysis compares the last 12 months with the previous year, as of December 2021.

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

To offer you a more useful insight into the emirate’s real estate market, Bayut & dubizzle’s combined data compared the prevailing prices of properties to those observed in 2020.

As per the findings, investors and home seekers have mainly searched for properties in the suburban districts of Al Reef And Al Ghadeer to purchase affordable villas and apartments in Abu Dhabi. High-Net-Worth (HNW) buyers have, however, shown an inclination towards island communities such as Al Reem Island and Saadiyat Island to buy upscale properties in the region.

When it comes to the off-plan projects, Diva and Water’s Edge in Yas Island have been most popular among those looking to invest in off-plan apartments in Abu Dhabi. Investors looking to buy off-plan villas have shown a strong preference for Noya and Yas Acres.

In the following sections we will take a detailed look at Abu Dhabi’s property prices for sale in 2021.

AL REEF IS THE MOST POPULAR AREA FOR AFFORDABLE APARTMENTS IN ABU DHABI

2021 PROPERTY PRICES IN ABU DHABI TO BUY AFFORDABLE FLATS

POPULAR AREAS	RENTAL YIELD	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020	STUDIOS	1-BED	2-BED
Al Reef	RENTAL YIELD 7.96%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 669 1.53%	STUDIOS 490,000	1-BED 640,000	2-BED 790,000
Al Ghadeer	RENTAL YIELD 6.71%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 701 -1.46%	STUDIOS 337,000	1-BED 489,000	2-BED 685,000
Masdar City	RENTAL YIELD 7.96%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 1,178 -0.13%	STUDIOS 520,000	1-BED 733,000	2-BED 1,038,000
Baniyas	RENTAL YIELD 5.03%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 778 -2.84%	STUDIOS 521,000	1-BED 613,000	2-BED 1,156,000

According to the combined data released by Bayut & dubizzle in 2021, Al Reef has been the most searched location among price-conscious buyers in Abu Dhabi. The fact that the area offers a range of modern flats and easy access to Dubai has contributed to it becoming an attractive option in the city.

The average price-per-square-foot of apartments for sale in Al Reef has risen slightly by 1.5% to AED 669. When it comes to the sales price of individual units in the area, flats in Al Reef can be purchased for an average sales price of AED 490k for studios, AED 640k for 1-bed flats and AED 790k for 2-bed apartments.

Al Ghadeer has been the second-most popular area to buy affordable flats in Abu Dhabi. The area has been gaining sustained traction with home buyers for providing modern-day conveniences, cheap costs and convenient access to Dubai.

The price-per-square-foot of apartments in Al Ghadeer has averaged at AED 701, following a marginal dip of 1.46%. The average price of studios for sale in Al Ghadeer has stood at AED 337k over the course of 2021 as per advertised listings on Bayut & dubizzle. Investors searching for more spacious units in Al Ghadeer have also shown interest in 1 and 2-bed apartments in the community averaging at AED 489k and AED 685k, respectively.

Next on our list of the most popular places to buy reasonably-priced flats in Abu Dhabi has been the eco-friendly community of Masdar City, followed by the older suburb of Baniyas.

The average price-per-square-foot of apartments for sale in Masdar City has been AED 1,178, exhibiting a minimal decline of 0.13%. When it comes to the average prices of units in Masdar City, studios have been competitively priced at AED 520k, with 1-bed apartments averaging at AED 733k. Those interested in 2-bed flats in Masdar City should note that these units are available at an average price of AED 1M.

The average price-per-square-foot of flats in Baniyas has been valued at AED 778, showing a decline of 2.84%. The average cost of studios in Baniyas has remained stable at AED 521k, whereas 1 and 2-bed flats have averaged at AED 613k and AED 1.15M.

MASDAR CITY AND AL REEF HAVE THE HIGHEST RENTAL YIELDS AMONG POPULAR AFFORDABLE APARTMEN AREAS

As per our data, among the most searched-for areas in the capital, Al Reef and Masdar City have offered the highest rental yields of 7.96%. Aside from these two communities, Al Ghadeer has also offered a rental yield of 6.7% in 2021.

AL REEF DOWNTOWN IS THE MOST SOUGHT-AFTER COMMUNITY TO BUY AFFORDABLE FLATS IN AL REEF

Al Reef Downtown has proven to be the most popular sub-community for buying cheap flats in Al Reef. Nestled on the outskirts of Abu Dhabi, Al Reef Downtown features apartments in a variety of layouts and styles. Complete with modern facilities, these apartments come in studio, 1-bed and 2-bed configurations. You can buy apartments in Al Reef Downtown at a starting price of AED 410k.

AL REEM ISLAND GARNERS THE MOST INTEREST FOR LUXURY APARTMENT SALES IN ABU DHABI

MOST POPULAR AREAS TO BUY LUXURY APARTMENTS IN ABU DHABI

POPULAR AREAS	RENTAL YIELD	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020	1-BED	2-BED	3-BED
Al Reem Island	RENTAL YIELD 6.62%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 993 1.85%	1-BED 807,000	2-BED 1,289,000	3-BED 1,917,000
Al Raha Beach	RENTAL YIELD 6.71%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 1,170 0.32%	1-BED 1,122,000	2-BED 1,650,000	3-BED 2,553,000
Saadiyat Island	RENTAL YIELD 6.15%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 1,494 4.25%	1-BED 2,124,000	2-BED 2,812,000	3-BED 4,454,000
Yas Island	RENTAL YIELD 7.02%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 1,230 -0.27%	1-BED 953,000	2-BED 1,510,000	3-BED 2,352,000

In 2021, Abu Dhabi’s waterfront communities have topped the list of the most popular areas to buy luxury apartments in the capital.

Al Reem Island has once again emerged as the most searched-for area for luxury apartments in Abu Dhabi, experiencing a minor increase of 1.8% in the average price-per-square-foot, coming in at AED 993 as opposed to AED 975 in 2020. The average cost of 1-bed apartments in Al Reem Island has been priced at AED 807k, whereas 2 and 3-bed flats have averaged at AED 1.28M and AED 1.91M, respectively.

Offering seafront living at its best, Al Raha Beach has unsurprisingly been the second most in-demand area to buy luxury apartments in Abu Dhabi. In comparison to 2020, the average price-per-square-foot of flats for sale in Al Raha Beach has increased marginally by 0.3% to AED 1,170.

The 1-bed apartments in Al Raha Beach have averaged at AED 1.1M whereas 2 and 3-bed flats in the community have averaged at AED 1.65M and AED 2.55M respectively.

In addition to the aforementioned areas, Abu Dhabi’s two most iconic island communities – Saadiyat Island and Yas Island – have gained equal traction among those searching for luxury apartments in the capital city.

The average price-per-square-foot of flats in Saadiyat Island has risen by 4.2% to AED 1,494. Alternatively, Yas Island’s apartments have shown a minimal decline of 0.2% in average price-per-square-foot, coming in at AED 1,230.

When it comes to individual units, 1-bed flats in Saadiyat Island have averaged at AED 2.12M, whereas 1-bed flats in Yas Island can be purchased for AED 953k.

YAS ISLAND HAS THE HIGHEST RENTAL YIELD AMONG POPULAR LUXURY APARTMENT AREAS

Yas Island has offered the highest rental yields of 7% to buy luxury apartments in Abu Dhabi. Apart from Yas Island, Al Raha Beach and Al Reem Island have also come to the forefront, offering respective rental yields of 6.7% and 6.6%.

SHAMS ABU DHABI IS THE MOST POPULAR SUB-COMMUNITY TO BUY HIGH-END APARTMENTS IN AL REEM ISLAND

Buyers on the lookout for luxury apartments in Al Reem Island have focused on the well-established district of Shams Abu Dhabi. The area offers the quintessence of waterfront living coupled with modern-day conveniences, including pools, saunas and play areas for kids. The cost of flats in Shams Abu Dhabi starts at AED 569.9k.

Apart from Shams Abu Dhabi, areas such as Marina Square, Shams Gate District, City Of Lights and Najmat Abu Dhabi have been popular with investors in the city.

AL REEF IS THE FIRST CHOICE FOR BUYING AFFORDABLE VILLAS IN ABU DHABI

ABU DHABI PROPERTY PRICES FOR BUYING AFFORDABLE VILLAS

POPULAR AREAS	RENTAL YIELD	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020	3-BED	4-BED	5-BED
Al Reef	RENTAL YIELD 6.38%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 670 8.91%	3-BED 1,532,000	4-BED 2,126,000	5-BED 2,440,000
Khalifa City A	RENTAL YIELD 4.53%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 730 6.57%	3-BED 4,222,000	4-BED 5,002,000	5-BED 6,984,000
Hydra Village	RENTAL YIELD 7.32%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 489 -2.68%	3-BED 908,000	4-BED N/A	5-BED N/A
Shakhbout City (Khalifa City B)	RENTAL YIELD 7.55%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 447 7.77%	3-BED N/A	4-BED 7,000,000	5-BED 5,970,000
Mohammed Bin Zayed City	RENTAL YIELD 5.02%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 634 26.21%	3-BED 3,900,000	4-BED 5,500,000	5-BED 5,929,000

Al Reef has been the most sought-after area for buying affordable villas in Abu Dhabi. This points towards the increasing demand for homes in the capital that lie in proximity to Dubai. The average price-per-square-foot of villas in Al Reef has been AED 670, surging by 8.9%.

Potential investors looking for affordable houses in Abu Dhabi should note that the sales price of 3-bed villas has averaged at AED 1.53M. The average prices for 4 and 5-bed houses have stood at AED 2.12M and AED 2.44M respectively.

The family-oriented area of Khalifa City A has proven to be the second-most popular choice for buying cheap villas in Abu Dhabi. The houses in Khalifa City A have shown a moderate rise of 6.57% in the average price-per-square-foot of AED 730 compared to AED 685 in 2020.

The average cost of 3-bed houses in Khalifa City A has been stable at AED 4.2M, whereas 4 and 5-bed houses in Khalifa City A have averaged at AED 5M and AED 6.98M respectively.

Additionally, potential investors looking for cheaper villas in Abu Dhabi have shown interest in Hydra Village, Shakhbout City (Khalifa City B) and Mohammed Bin Zayed City. Notably, Mohammed Bin Zayed City has shown an uptick of up to 26.21% in the average-price-per-square-foot, an increase that is mainly due to the larger inventory of higher-priced 5 and 6-bed listings in the area. That said, Khalifa City A, Shakhbout City, Mohammed Bin Zayed City and Baniyas are outside Abu Dhabi’s investment zones, which means non-UAE nationals cannot buy property in these areas.

SHAKHBOUT CITY (KHALIFA CITY B) HAS THE HIGHEST RENTAL YIELD AMONG POPULAR AFFORDABLE VILLA AREAS

Averaging at 7.55%, Shakhbout City (Khalifa City B) has emerged as the area with the highest rental yield when it comes to buying affordable villas in Abu Dhabi. Other areas with high gross rental yields in 2021 include Hydra Village with a rental yield of 7.32%, Al Reef offered a rental yield of 6.38% and Mohammed Bin Zayed City posted a rental yield of 5%.

AL REEF VILLAS IS THE MOST IN-DEMAND AREA TO BUY AFFORDABLE VILLAS IN AL REEF

Al Reef Villas has been the most searched-for area among buyers looking to purchase reasonable villas in Al Reef. Set in proximity to the commercial pedestrian plaza, the community has villas categorised into four architectural-themed clusters. Grouped into 3 to 6-bed units, the houses come with various facilities including pool access, a lush green garden and a separate maid’s room. You can consider buying a house in Al Reef Villas at a starting price of AED 1M.

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

ABU DHABI PROPERTY PRICES FOR LUXURY VILLAS IN 2021

POPULAR AREAS	RENTAL YIELD	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020	4-BED	5-BED	6-BED
Saadiyat Island	RENTAL YIELD 5.08%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 1,393 3.61%	4-BED 7,577,000	5-BED 12,962,000	6-BED 15,795,000
Yas Island	RENTAL YIELD 5.11%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 1,081 10.7%	4-BED 5,114,000	5-BED 6,362,000	6-BED 8,728,000
Al Raha Gardens	RENTAL YIELD 5.87%	PRICE PER SQ.FT Avg. Price/sq.ftChange from 2020 825 1.86%	4-BED 2,721,000	5-BED 3,927,000	6-BED N/A

In 2021, Saadiyat Island has emerged as one of the most popular areas to buy luxury villas in Abu Dhabi. Saadiyat Island’s sustained popularity points towards consumers’ inclination for island communities. The price-per-square-foot of villas in Saadiyat Island has averaged at AED 1,393, increasing by 3.6%.

The sales price of 4-bedroom villas in Saadiyat Island has remained unchanged at AED 7.57M. The 5 and 6-bed houses in Saadiyat Island have averaged at AED 12.96M and AED 15.79M, respectively.

Another island community that has been popular during 2021 among investors is Yas Island. Houses in Yas Island have experienced a 10.7% appreciation in price-per-square-foot, averaging at AED 1,081. The rise in Yas Island’s prices has been primarily due to a price shift caused by an influx of higher-priced inventory across West Yas and Yas Acres.

The average cost of 4-bedroom units in Yas Island has been AED 5.11M whereas 5 and 6-bed houses have averaged at AED 6.36M and AED 8.72M.

The lush, green, tranquil community of Al Raha Gardens has ranked third in the list of most popular areas to buy luxury villas in Abu Dhabi. Given that the area offers peaceful, family-friendly living amidst a beautiful landscape, its continued popularity among buyers is not surprising.

Houses in Al Raha Gardens have seen a 1.86% rise in price-per-square-foot, averaging at AED 825 compared to 2020. The average price of 4 to 5-bed villas in Al Raha Gardens has ranged from AED 2.7M to AED 3.9M, as per annual sales trends observed by Bayut & dubizzle for Abu Dhabi.

AL RAHA GARDENS HAS THE HIGHEST RENTAL YIELD AMONG POPULAR LUXURY VILLAS AREAS

Al Raha Gardens has offered the highest rental yield of 5.87% for luxury villas in Abu Dhabi. Yas Island and Saadiyat Island followed, with rental yields of 5.11% and 5.08%, respectively.

HIDD AL SAADIYAT IS THE MOST POPULAR COMMUNITY TO BUY UPSCALE VILLAS IN SAADIYAT ISLAND

In 2021, the sophisticated, modern development of HIDD Al Saadiyat has emerged as the top community to purchase luxury villas in Saadiyat Island. HIDD Al Saadiyat is a villa-only community set on the eastern front of the island. Those living in HIDD Al Saadiyat have the beach on their doorstep, with schools, clinics, parks and supermarkets elsewhere on Saadiyat Island.

The cost of houses in HIDD Al Saadiyat starts at AED 7.5M. Interestingly, one of Abu Dhabi’s priciest houses also lies in this affluent community.

Additionally, Saadiyat Beach, Saadiyat Cultural District, Jawaher Saadiyat and Saadiyat Reserve have attracted the interest of investors looking to buy elegant, high-priced villas in Saadiyat Island.

KEY OFF-PLAN PROJECTS IN ABU DHABI

MOST POPULAR OFF-PLAN APARTMENTS IN ABU DHABI

PROJECT	LOCATION	CATEGORY
PROJECT Diva	LOCATION Yas Island	CATEGORY Affordable
PROJECT Oasis Residences	LOCATION Masdar City	CATEGORY Affordable
PROJECT Al Ghadeer Phase II	LOCATION Al Ghadeer	CATEGORY Affordable
PROJECT Water’s Edge	LOCATION Yas Island	CATEGORY Luxury
PROJECT Makers District	LOCATION Al Reem Island	CATEGORY Luxury
PROJECT Saadiyat Cultural District	LOCATION Saadiyat Island	CATEGORY Luxury

According to data compiled for Bayut & dubizzle, the project Diva on Yas Island has garnered maximum consumer interest among those searching for affordable apartments in Abu Dhabi.

The average cost of flats in Diva stands at AED 804k. Aside from Diva and Oasis Residences by Reportage Properties, Al Ghadeer Phase II by Aldar have also appealed to apartment-buyers in Abu Dhabi.

Investors looking for upscale apartments have been most inclined towards Water’s Edge in Yas Island. The flats in Water’s Edge by Aldar have a starting price of AED 545k.

Other areas that have been sought-after by investors in 2021 include the likes of Makers District by Imkan in Al Reem Island and Saadiyat Cultural District on Saadiyat Island.

All in all, investors’ continued interest in the aforementioned areas is a testament to the growing demand for island communities in Abu Dhabi.

TOP OFF-PLAN VILLA PROJECTS IN ABU DHABI

PROJECT	LOCATION	CATEGORY
PROJECT Noya	LOCATION Yas Island	CATEGORY Affordable
PROJECT Al Ghadeer Phase II	LOCATION Al Ghadeer	CATEGORY Affordable
PROJECT Yas Acres	LOCATION Yas Island	CATEGORY Luxury
PROJECT Al Jurf Gardens	LOCATION Al Jurf	CATEGORY Luxury

Noya, Yas Acres and Al Ghadeer Phase II are Aldar communities and Al Jurf Gardens is part of Imkan’s AlJurf at Ghantoot, between Abu Dhabi and Dubai.

In 2021, Noya has continued to appeal to investors searching for cheap off-plan houses in Abu Dhabi. The average cost of villas in Noya has been AED 2.4M. Apart from Noya, Al Ghadeer Phase II has been quite popular among those looking for affordable housing in Abu Dhabi. Prices for houses in Al Ghadeer II have averaged at AED 1.3M.

On the luxury front, Yas Acres has been the most popular community among investors. The average cost of villas in Yas Acres has been AED 4.7M. Following Yas Acres, Al Jurf Gardens has also garnered major attention from buyers. Houses in Al Jurf Gardens have averaged at AED 3M.

Please note that some of the off-plan areas listed above may have more than one project or phase, some of which may have been completed and handed over.

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

“The economy as a whole in Abu Dhabi has been very positive over the course of 2021, because of various contributors. Looking at the end of year analysis by Reuters, Abu Dhabi has outshone other Middle Eastern markets when it comes to the stock market, exhibiting its best annual performance in 16 years. This is also reflected in the growing positive sentiment when it comes to property sales in the capital. Waterfront areas, family-friendly suburbs and sustainable developments have continued to be popular resulting in the cumulative traffic on Bayut & dubizzle to exceed 14 million sessions in 2021 .”

As the report shows, Abu Dhabi’s sales market grew steadily in 2021, led by luxury areas, while some affordable areas saw small declined. Villa prices recorded the highest increases in Mohammed Bin Zayed City (26.21%), Yas Island (10.7%) and Al Reef (8.91%), while average apartment prices in affordable areas such as Baniyas (-2.84%) and Al Ghadeer (-1.46%) declined slightly.

To explore how Dubai’s property market performed during 2021, refer to Dubai’s Annual Sales Market Report.

Disclaimer: This report is based on property listing prices advertised on Bayut.com and dubizzle.com by real estate agencies on behalf of their clients. Figures represent advertised prices only and do not reflect actual transaction prices unless stated. Reported price metrics are calculated as averages after removing outliers to reduce the influence of extreme values and provide a more robust summary of advertised market prices.