Abu Dhabi Property Market Report for H1 2020

• Apartment Sales
• Apartment Rentals
• Villa Sales
• Villa Rentals
• Top Off-Plan Projects

With the first half of 2020 coming to an end, it’s time to evaluate how property prices in the capital have evolved over the past 6 months with Bayut’s detailed H1 2020 Abu Dhabi Market Report. Over the last few months, we have experienced one of the most challenging periods in human history. However, despite the difficult environment, the capital city’s real estate market has largely stayed resilient, with asking prices and rents in most popular areas down by less than 10% from H2 2019. Let’s take a closer look at the featured areas for renting and buying in the capital and how real estate prices fared in H1 2020. 

Data sourcing & analysis: All prices in this report are quoted in AED. Average asking sale prices, rental prices and gross rental yields for apartments and villas are based on property listings advertised on Bayut in Abu Dhabi. Sales price trends are assessed using the average asking price per square foot, while rental trends are based on average annual asking rents by property type and bedroom configuration. Popular areas are identified based on user interest on Bayut. The analysis compares H1 2020 with H2 2019.

Key Market Trends

Abu Dhabi continues to attract investors and renters with competitive property prices, a wide portfolio of properties, with high rental yields, and good infrastructure. Overall, prices remain attractive with modest declines in most areas. In terms of popularity, upscale and suburban neighbourhoods such as Al Reem Island, Al Raha Beach, Saadiyat Island and Yas Island have attracted the most attention from investors.

For an accurate representation of sales trends for apartments and villas in popular areas, we have compared prices in Abu Dhabi on the basis of average price per square foot. While average price per square foot better indicates sales price fluctuations, it is influenced by several factors, including the influx of new off-plan properties, property type, access to amenities and demand.

Popular Areas in Abu Dhabi for Apartment Sales

Popular Areas	Rental Yield	Price Per sq.ft Avg. Price/sq.ftChange from H2 2019	Studio	1-Bed	2-Bed
Al Reem Island	Rental Yield 7.2%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 970 -2.9%	Studio 538,000	1-Bed 825,000	2-Bed 1,322,000
Al Raha Beach	Rental Yield 6.8%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 1,201 -4.5%	Studio 928,000	1-Bed 1,124,000	2-Bed 1,680,000
Saadiyat Island	Rental Yield 5.8%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 1,452 -1.1%	Studio 661,000	1-Bed 1,884,000	2-Bed 2,686,000
Al Reef	Rental Yield 8.1%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 685 -1.2%	Studio 484,000	1-Bed 616,000	2-Bed 850,000
Al Ghadeer	Rental Yield 8.5%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 735 -8.6%	Studio 346,000	1-Bed 497,000	2-Bed 724,000
Masdar City	Rental Yield 6.9%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 1,072 -8.1%	Studio 511,000	1-Bed 739,000	2-Bed 1,065,000
Yas Island	Rental Yield 6.7%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 1,329 -0.7%	Studio 768,000	1-Bed 1,165,000	2-Bed 1,828,000
Baniyas	Rental Yield 6.2%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 791 3.3%	Studio N/A	1-Bed 677,000	2-Bed N/A

In H1 2020, Al Reem Island was the favoured choice for investors and buyers looking to purchase apartments in Abu Dhabi. In Al Reem Island, the average price per square foot declined by 2.9%, from AED 998 in H2 2019 to AED 970 in H1 2020. The overall cost to buy apartments remains competitive, with studios averaging at AED 538k, 1-bedrooms at AED 825k and 2-bedrooms at AED 1.32M, respectively. 

The luxurious waterfront development of Al Raha Beach retains the second position as a popular area to buy apartments in Abu Dhabi. The average price per square foot in this neighbourhood declined by 4.5%, which is reflected in the average cost of certain units.

The average price of 1-bedroom apartments decreased from AED 1.19M in H2 2019 to AED 1.12M, while average prices for 2-bedroom flats in Al Raha Beach now stand at AED 1.68M. Studio prices increased slightly from AED 902k in H2 2019 to AED 928k in H1 2020.

Other locations that attracted attention from investors with respect to apartments for sale in Abu Dhabi are Saadiyat Island, Al Reef, Al Ghadeer, Masdar City, Yas Island and Baniyas.

The average price per square foot remained relatively stable across these areas, except in Al Ghadeer and Masdar City, where it declined by 8.6% and 8.1%, respectively. According to our analysis of property prices, the average price per square foot for apartments for sale in Al Ghadeer went down from AED 805 previously to AED 735 now, while the price per square foot to buy apartments in Masdar City went from AED 1,166 to AED 1,072.

Marina Square Tops Buyer Searches

The most popular area in Al Reem Island to buy apartments is Marina Square – a mixed-use development with multiple luxurious residential towers. The apartments for sale in Marina Square offer buyers a variety of property choices, from cosy studios to luxurious 4-bedroom apartments. Investors can expect to pay a minimum of AED 520k for a studio, AED 660k for a 1-bed, AED 907k for a 2-bed, AED 1.48M for a 3-bed and AED 1.8M for a 4-bed.

Other popular areas with apartments for sale in Al Reem Island include Shams Abu Dhabi, City Of Lights, Shams Gate District and Najmat Abu Dhabi.

Al Ghadeer Has The Highest Apartment Rental Yields

Apartments for sale in Al Ghadeer offer the highest rental yield among the areas covered in this report, at 8.5%. Another popular option for investors interested in buy-to-let properties is Al Reef, which offers a rental yield of 8.1%.

Now let’s take a look at the property prices for renting apartments. 

Popular Areas to Rent Apartments in Abu Dhabi

Popular Areas	Studio Avg. Yearly RentChange from H2 2019	1-Bed Avg. Yearly RentChange from H2 2019	2-Bed Avg. Yearly RentChange from H2 2019
Al Reem Island	Studio Avg. Yearly RentChange from H2 2019 46,000 -6.1%	1-Bed Avg. Yearly RentChange from H2 2019 63,000 -1.6%	2-Bed Avg. Yearly RentChange from H2 2019 90,000 0.0%
Al Khalidiyah	Studio Avg. Yearly RentChange from H2 2019 35,000 0.0%	1-Bed Avg. Yearly RentChange from H2 2019 58,000 0.0%	2-Bed Avg. Yearly RentChange from H2 2019 65,000 0.0%
Khalifa City A	Studio Avg. Yearly RentChange from H2 2019 27,000 -3.6%	1-Bed Avg. Yearly RentChange from H2 2019 45,000 -2.2%	2-Bed Avg. Yearly RentChange from H2 2019 65,000  N/A
Al Muroor	Studio Avg. Yearly RentChange from H2 2019 37,000 -2.6%	1-Bed Avg. Yearly RentChange from H2 2019 45,000 -6.3%	2-Bed Avg. Yearly RentChange from H2 2019 59,000 -1.7%
Hamdan Street	Studio Avg. Yearly RentChange from H2 2019 39,000 0.0%	1-Bed Avg. Yearly RentChange from H2 2019 49,000 -5.8%	2-Bed Avg. Yearly RentChange from H2 2019 63,000 -8.7%
Corniche Area	Studio Avg. Yearly RentChange from H2 2019 55,000 0.0%	1-Bed Avg. Yearly RentChange from H2 2019 86,000 0.0%	2-Bed Avg. Yearly RentChange from H2 2019 115,000 6.5%
Airport Street	Studio Avg. Yearly RentChange from H2 2019 37,000 0.0%	1-Bed Avg. Yearly RentChange from H2 2019 48,000 -2.0%	2-Bed Avg. Yearly RentChange from H2 2019 60,000 -4.8%
Mussafah	Studio Avg. Yearly RentChange from H2 2019 30,000 -3.2%	1-Bed Avg. Yearly RentChange from H2 2019 40,000 -2.4%	2-Bed Avg. Yearly RentChange from H2 2019 50,000 -3.8%
Al Nahyan	Studio Avg. Yearly RentChange from H2 2019 39,000 -11.4%	1-Bed Avg. Yearly RentChange from H2 2019 49,000 -9.3%	2-Bed Avg. Yearly RentChange from H2 2019 64,000 0.0%
Tourist Club Area (TCA)	Studio Avg. Yearly RentChange from H2 2019 37,000 -5.1%	1-Bed Avg. Yearly RentChange from H2 2019 49,000 -2.0%	2-Bed Avg. Yearly RentChange from H2 2019 61,000 -1.6%
Not available due to low/no historical inventory or influx of off-plan properties

Along with being the top choice for buying apartments, Al Reem Island is also popular with tenants looking for rental flats in Abu Dhabi. Studio rents in Al Reem Island fell 6.1% to AED 46k and 1-bedroom rents fell 1.6% to AED 63k, while 2-bedroom rents remained unchanged at AED 90k in H1 2020.

Al Khalidiyah is the next sought-after area in the Abu Dhabi real estate market for rental apartments. Average rents remained steady during H1 2020. The rents for studios average at AED 35k, while 1 and 2-bedroom flats average at AED 58k and AED 65k, respectively.

Other areas that are popular for renting flats include Khalifa City A, Al Muroor, Hamdan Street, Corniche Area, Airport Street, Mussafah, Al Nahyan and Tourist Club Area (TCA).

Shams Abu Dhabi is a Popular Sub-Community to Rent in Al Reem Island

As per our analysis of rental trends in Abu Dhabi, Shams Abu Dhabi is the most popular area with potential tenants looking for rental flats in Al Reem Island. It is located a five-minute drive from the city centre and is a vibrant leisure and business destination. Other popular areas to rent apartments in Al Reem Island include Marina Square, City of Lights, Shams Gate District and Najmat Abu Dhabi.

Popular Areas to Buy Villas in Abu Dhabi

Popular Areas	Rental Yield	Price Per sq. ft Avg. Price/sq.ftChange from H2 2019	3-Bed	4-Bed	5-Bed
Al Reef	Rental Yield 7.1%	Price Per sq. ft Avg. Price/sq.ftChange from H2 2019 596 -3.1%	3-Bed 1,346,000	4-Bed 1,856,000	5-Bed 2,107,000
Saadiyat Island	Rental Yield 4.4%	Price Per sq. ft Avg. Price/sq.ftChange from H2 2019 1,411 -1.4%	3-Bed 5,730,000	4-Bed 6,437,000	5-Bed 10,522,000
Yas Island	Rental Yield 4.6%	Price per Sq. Ft Avg. Price/sq.ftChange from H2 2019 848 0.4%	3-Bed 3,342,000	4-Bed 4,312,000	5-Bed 4,904,000
Khalifa City A	Rental Yield 4.9%	Price Per sq. ft Avg. Price/sq.ftChange from H2 2019 652  N/A	3-Bed N/A	4-Bed 6,389,000	5-Bed 6,821,000
Al Raha Gardens	Rental Yield 6.1%	Price Per sq. ft Avg. Price/sq.ftChange from H2 2019 784 5.1%	3-Bed 2,462,000	4-Bed 2,930,000	5-Bed 3,769,000
Not available due to low/no historical inventory or influx of off-plan properties

According to Bayut’s H1 2020 Market Report in Abu Dhabi, Al Reef continues to attract great interest from prospective buyers looking to invest in villas in Abu Dhabi. In H1 2020, the average price per square foot for villas in Al Reef experienced a minor decline of 3.1% from AED 616 to AED 596.

The average asking prices for 3-bedroom villas went from AED 1.4M in H2 2019 to AED 1.34M in H1 2020, while 4-bedroom villas noticed a price decrease from AED 1.94M to AED 1.86M. The average prices for 5-bedroom units remain relatively unchanged at AED 2.1M.

Saadiyat Island is the next freehold area drawing interest from prospective villa buyers. The average asking price per square foot remained relatively stable, declining by 1.4% from AED 1,431 in H2 2019 to AED 1,411 in H1 2020.

Average prices for 3-bedroom villas decreased from AED 6.43M to AED 5.73M, while 4-bedroom villas declined from AED 6.56M to AED 6.43M. Meanwhile, average prices for 5-bedroom villas increased from AED 10.1M to AED 10.5M. Moreover, villa price per sq.ft. rose 0.4% in Yas Island and 5.1% in Al Raha Gardens.

Other popular areas with villas for sale in Abu Dhabi include Yas Island, Khalifa City A and Al Raha Gardens. Average villa asking prices in these areas remained relatively stable during H1 2020.

Al Reef Has the Highest Villa Rental Yield

Investors looking for villas with the highest rental yield in Abu Dhabi can consider Al Reef. According to our market analysis for H1 2020, Al Reef villas deliver attractive rental returns of 7.1%. This is closely followed by the villas in Al Raha Gardens, which offer rental returns of 6.1% on average. Yas Island and Saadiyat Island also offer good rental yields at the 4% mark for those interested in buying villas in Abu Dhabi.

Popular Areas to Rent Villas in Abu Dhabi

Popular Areas	3-Bed Avg. Yearly RentChange from H2 2019	4-Bed Avg. Yearly RentChange from H2 2019	5-Bed Avg. Yearly RentChange from H2 2019
Mohammed Bin Zayed City	3-Bed Avg. Yearly RentChange from H2 2019 89,000 -6.3%	4-Bed Avg. Yearly RentChange from H2 2019 121,000 -3.2%	5-Bed Avg. Yearly RentChange from H2 2019 143,000 -1.4%
Khalifa City A	3-Bed Avg. Yearly RentChange from H2 2019 128,000 N/A	4-Bed Avg. Yearly RentChange from H2 2019 150,000 -2.6%	5-Bed Avg. Yearly RentChange from H2 2019 164,000 0.0%
Al Reef	3-Bed Avg. Yearly RentChange from H2 2019 99,000 -3.9%	4-Bed Avg. Yearly RentChange from H2 2019 131,000 -1.5%	5-Bed Avg. Yearly RentChange from H2 2019 140,000 -1.4%
Shakhbout City (Khalifa City B)	3-Bed Avg. Yearly RentChange from H2 2019 115,000 -0.9%	4-Bed Avg. Yearly RentChange from H2 2019 128,000 -5.2%	5-Bed Avg. Yearly RentChange from H2 2019 140,000 -4.8%
Al Mushrif	3-Bed Avg. Yearly RentChange from H2 2019 164,000 N/A	4-Bed Avg. Yearly RentChange from H2 2019 172,000 N/A	5-Bed Avg. Yearly RentChange from H2 2019 196,000 -1.0%
Al Bateen	3-Bed Avg. Yearly RentChange from H2 2019 145,000 0.0%	4-Bed Avg. Yearly RentChange from H2 2019 N/A	5-Bed Avg. Yearly RentChange from H2 2019 233,000 -5.3%
Saadiyat Island	3-Bed Avg. Yearly RentChange from H2 2019 293,000 -3.0%	4-Bed Avg. Yearly RentChange from H2 2019 344,000 N/A	5-Bed Avg. Yearly RentChange from H2 2019 417,000 -1.0%
Al Karamah	3-Bed Avg. Yearly RentChange from H2 2019 130,000 N/A	4-Bed Avg. Yearly RentChange from H2 2019 151,000 -1.3%	5-Bed Avg. Yearly RentChange from H2 2019 184,000 -13.2%
Al Raha Gardens	3-Bed Avg. Yearly RentChange from H2 2019 146,000 -0.7%	4-Bed Avg. Yearly RentChange from H2 2019 170,000 0.0%	5-Bed Avg. Yearly RentChange from H2 2019 202,000 N/A
Not available due to low/no historical inventory or influx of off-plan properties

Mohammed Bin Zayed City (MBZ City) is once again the top area for renting villas in Abu Dhabi. This large villa community is known for its affordable housing options and family-friendly amenities. In H1 2020, average annual rents for 3-bedroom villas declined by 6.3% from AED 95k to AED 89k, while rent for 4-bedroom villas decreased by 3.2% from AED 125k to AED 121k. Yearly rents for 5-bedroom villas in MBZ City dipped 1.4% to an average of AED 143k.

Khalifa City A is the second-most popular area for villa rentals in Abu Dhabi. Villa rents in the area remained fairly stable, averaging AED 128k for 3-bedroom units, AED 150k for 4-bedroom units and AED 164k for 5-bedroom homes.

Al Reef, Shakhbout City (Khalifa City B), Al Mushrif, Al Bateen, Saadiyat Island, Al Karamah and Al Raha Gardens are also popular for rental villas in Abu Dhabi.

Popular Villa Rental Communities in MBZ City

Consumer interest on Bayut reveals that the villas for rent in Mohamed Bin Zayed Centre are the most popular options for tenants keen on this family-friendly neighbourhood. Zones 7, 5, 17 and 14 are other popular sub-communities in MBZ City for renting villas. 

Now let’s take a look at the real estate trends in Abu Dhabi in 2020 for the off-plan market.

Featured Off-Plan Projects in Abu Dhabi H1 2020

Area	Project	Property Type
Area Yas Island	Project Yas Acres	Property Type Villas and Townhouses
Area Al Reem Island	Project Shams Abu Dhabi	Property Type Apartments
Area Saadiyat Island	Project Jawaher Saadiyat	Property Type Villas and Townhouses
Area Al Maryah Island	Project Al Maryah Vista	Property Type Apartments
Area Masdar City	Project The Gate	Property Type Apartments

Similar to Q1 2020, freehold areas such as Yas Island, Saadiyat Island and Masdar City, have garnered interest from investors and potential homeowners. Within these neighbourhoods, Yas Acres in Yas Island and Jawaher Saadiyat in Saadiyat Island are popular off-plan villa and townhouse projects on Bayut.

Popular off-plan apartment projects on Bayut include Shams Abu Dhabi in Al Reem Island, Al Maryah Vista in Al Maryah Island and The Gate in Masdar City.

Haider Ali Khan, CEO of Bayut and dubizzle, commented on the performance of the Abu Dhabi real estate market: 

“The real estate market in the UAE and the capital in particular, stayed more or less resilient despite the unprecedented challenges created by the COVID-19 pandemic. Thanks to the initial timely response and stimulus measures to support landlords and tenants, the market as a whole was able to bounce back, recover and adapt to the new normal. Similar to the DMT’s reports about the increase in transactions during April to over AED 6 billion, we have observed a corresponding increase in interest on Bayut, with views for properties in Abu Dhabi increasing progressively on a monthly basis. In the last two months alone, the total traffic for listings in Abu Dhabi has come close to 5 million views on Bayut, reflecting the growing interest in the capital’s market. Although inter-emirate travel has not returned to pre-COVID levels, the lack of any mobility restrictions have helped home seekers to easily move homes and find good investment opportunities in the capital.  

As the market matures further, we are likely to see these trends continue with more investors, buyers and tenants taking the step to invest, buy and live in the capital city.”

That concludes our H1 2020 market report on property prices in Abu Dhabi. Property prices and rents remained relatively stable across most popular areas, with modest declines creating opportunities for buyers and tenants. Strong rental yields, competitive prices and continued interest in off-plan developments reinforced Abu Dhabi’s appeal as a destination for property investment.

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