Bayut’s Abu Dhabi Property Market Report for Q3 2019

This report compares Abu Dhabi property prices in Q3 2019 with Q2 2019: average sales prices per square foot for apartments and villas and average yearly rents by unit type in popular areas.

Let’s take a close look at all the popular areas for renting and buying in the capital and how the real estate prices in Abu Dhabi have fared this quarter. To get an accurate representation of the sales trends for villas and apartments in the top areas, this report on property prices in Abu Dhabi compares the average price per square foot in Q2 of 2019 to Q3 of 2019. These prices are, however, subject to change within an area and property type, based on the building, amenities, developer and other deciding factors. For the rental properties, the report compares the average cost for individual unit types between the two quarters in the popular neighbourhoods of Abu Dhabi.

Trends Observed

The latest report of property prices in Abu Dhabi covers the first full quarter after Law No. 13 of 2019 opened freehold ownership in investment zones to foreigners. Since April 2019, non-UAE nationals can now own freehold property in Abu Dhabi’s investment areas including Yas Island, Saadiyat Island, Al Reem, Al Maryah, Al Raha Beach, Al Reef and Masdar City. Investment zones like Al Reem Island, Al Raha Beach, Al Reef and Saadiyat Island dominate the interest of investors and potential homeowners in the capital.

As for the rental market, the more established suburbs such as Mohammed Bin Zayed City (MBZ City), Khalifa City A and Al Muroor remain a popular choice for tenants, with most apartment and villa rents unchanged or within a few percent of Q2 2019 levels.

In terms of popularity, the property trends in Abu Dhabi for Q3 of 2019 show that Al Reem Island takes the crown as the most popular area to buy and rent apartments in Abu Dhabi. For villas in Abu Dhabi, Al Reef is the most popular area with buyers and MBZ City is the favoured choice for tenants.

Popular Areas to Buy Apartments

Al Reem Island

Al Reem Island is the most searched for area by investors and buyers looking to purchase apartments in Abu Dhabi. The average price per square foot experienced a marginal drop of 2.2%. This drop is also reflected across the board in the average cost for apartments in Al Reem Island. Studios for sale in Al Reem Island went from AED 600k in Q2 2019 to AED 550k now, while 1-bedroom flats for sale went from AED 860k to AED 850k. Average sale prices for Al Reem Island’s 2-bedroom apartments also dropped from AED 1.4M to AED 1.35M.

Al Raha Beach

Coming in as the second most popular area to buy flats in Abu Dhabi is Al Raha Beach where the average price per square foot remained relatively stable at AED 1,206. The overall cost to buy apartments in Al Raha Beach showcases stability with studios averaging at AED 930k, 1-bedrooms at AED 1.16M and 2-bedrooms at AED 1.7M respectively.

Other Popular Areas

Following the top two areas, investment zones such as Al Ghadeer, Masdar City, Saadiyat Island and Al Reef have garnered high interest with buyers looking at apartments for sale in Abu Dhabi. Homeowners in these communities will be happy to note that the Abu Dhabi property price trends in these neighbourhoods are showing an increase in average price per square foot of 3.4% to 5.5%. Other popular neighbourhoods with flats for sale in Abu Dhabi are Yas Island, Baniyas, Al Maryah Island and Danet Abu Dhabi. Al Maryah Island has also recently unveiled the extended version of Galleria Mall.

Rental Yields

Al Maryah Island has the highest rental yield for apartments in the table, at 10.6%. Areas such as Masdar City (8.5%), Baniyas (8.2%), Al Reef (8.1%) and Saadiyat Island (7.9%) follow. Al Ghadeer which is popular because of its proximity to Dubai, has a rental yield of 7.6%. Al Raha Beach (7.1%) and Al Reem Island (7.0%) have apartment rental yields of about 7%.

Please note that these figures are the overall rental yield for an area and can vary depending on the sub-community and property type.

Popular Areas to Rent Apartments

Al Reem Island

In Q3 2019, the neighbourhood of Al Reem Island is not just popular with buyers and investors but is highly desired by tenants as well. Rental price trends in this neighbourhood indicate some stability as rents for flats in Al Reem Island have seen a limited change from Q2 2019. Rents for studios in Al Reem Island experienced a minor drop of 2% from AED 50k in Q2 2019 to AED 49k now. As for the rents for 1-bedroom and 2-bedroom flats, these units continue to average at AED 65k and AED 90k, respectively.

Khalifa City A

The established Khalifa City A community is next on the list of top 10 areas to rent flats in Abu Dhabi. Here too rents remain largely unchanged with rental studios averaging at AED 28k, 1-bedroom flats at AED 49k and 2-bed rental apartments at AED 75k.

Other Popular Areas

Other popular areas to rent apartments in Abu Dhabi include Al Khalidiyah, Airport Street, Al Muroor, Corniche Area, Hamdan Street, Corniche Road and Al Nahyan. Rents fell 2.6% to 7.7% in Airport Street and Al Muroor and 8.3% for 2-bedroom flats on Corniche Road, while most other units were unchanged from Q2 2019.

The most noticeable declines are at 8.3% for 2-bedroom flats in Corniche Road where rents dropped from AED 120k in Q2 of 2019 to AED 110k now. Rents for 2-bedroom apartments in Airport Street and Al Muroor also experienced a drop of 7.7% from AED 65k to AED 60k in both areas.

Now let’s take a look at the property prices in Abu Dhabi for buying and renting villas in the capital city.

Popular Areas to Buy Villas

Al Reef

Al Reef once again is the most popular area with villas for sale in Abu Dhabi. The average price per square foot for villas for sale in Al Reef stands more or less steady at AED 625. The same is reflected in the overall cost for villas in Al Reef with 3-bedroom units averaging at AED 1.44M; 4-bedroom houses at AED 1.95M and 5-bedroom units at AED 2.2M.

Saadiyat Island

Saadiyat Island is the next most popular area to buy villas in Abu Dhabi. The average price per square foot, as well as the average cost of villas for sale in Saadiyat Island, remained fairly stable. Investors and home buyers looking to buy a villa in Abu Dhabi’s premier island can expect to pay AED 6.5M for 3-beds, AED 6.6M for 4-bed and AED 9M for 5 beds. The average price per square foot in Saadiyat Island is AED 1,394.

Other Popular Areas

Yas Island, Khalifa City A and Al Raha Gardens were the other popular areas to buy houses in Abu Dhabi. The average price per square foot in Al Raha Gardens fell 5.1%; no Q2 2019 figures are available for Yas Island and Khalifa City A.

Rental Yields

Al Reef which is the top area to buy houses in Abu Dhabi incidentally offers the highest rental yield for investors at 7%. Al Raha Gardens follows with a rental yield of 6.7%.

Popular Areas to Rent Villas

Mohammed Bin Zayed City

Being close to schools and boasting affordable rents in Abu Dhabi, Mohammed Bin Zayed City consistently takes the top spot to rent villas in the capital city. In the third quarter of 2019, rents for 3-bed and 5-bed villas in MBZ City rose 5.6% and 3.4% while 4-bed rents were unchanged.

The 3-bedroom rental villas in MBZ City have seen the most increase at 5.6% from AED 90k in Q2 2019 to AED 95k now. The rents for 4-bedroom houses at MBZ City held at AED 130k, while 5-bedroom rents rose 3.4% to AED 150k.

Khalifa City A

The second most popular neighbourhood with tenants looking for villas in Abu Dhabi is Khalifa City A, where 5-bedroom villas were unchanged from Q2 2019. Rents for 3-bedroom houses in Khalifa City A stand at AED 145k and 4-bedroom villas average at AED 155k. Tenants who are looking for larger homes can rent 5-bedroom villas in Khalifa City A priced at an average of AED 160k.

Other Popular Areas

Other residential communities that have caught the attention of tenants looking to rent houses in Abu Dhabi include Al Reef, Al Muroor, Shakhbout City (Khalifa City B), Al Mushrif, Al Bateen, Saadiyat Island, Yas Island and Al Raha Gardens.

The only noticeable decline in these areas is a 6.7% decrease of rents for 5-bed villas in Shakhbout City from AED 150k in Q2 of 2019 to AED 140k, presently. The other notable change is in Al Bateen, an area that attracts tenants looking for upscale options, where rents for 5-bed villas went up by 9.1%.

Featured Off-Plan Projects

When it comes to off-plan projects in Abu Dhabi, Yas Island is overall the most popular neighbourhood in Abu Dhabi. Within Yas Island, the project that has garnered the most interest is the Yas Acres community, which offers high-end, contemporary 2 to 6-bedroom villas.

The next most searched community with off-plan real estate in Abu Dhabi is Saadiyat Island. Here the most popular off-plan project is Park View, which offers investors and homebuyers anything from modern studios to 3-bedroom apartments. Al Reem Island and Al Raha Beach are also garnering interest from investors in Q3 2019.

Other projects that are popular for off-plan property investments in Abu Dhabi, especially for villas, are the houses in Bloom Gardens in Al Salam Street. Leonardo Residences in Masdar City, completed mid-2019, also drew interest from buyers. Upscale projects such as Al Maryah Vista apartments are also popular with investors in the third quarter of 2019.

Please note that while the projects mentioned do have off-plan properties, they may have phases that have been completed and handed over.

What Bayut’s CEO Says About the Abu Dhabi Market

Haider Ali Khan, the CEO of Bayut, commented on the findings:

“Abu Dhabi has 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.

The latest report from the Abu Dhabi Department of Economic Development shows the city’s overall GDP is expected to grow by 3% with non-oil growth projected at 3.9%. If we look at how the trends have evolved over the course of this year on Bayut, communities such as Yas Island, Saadiyat Island, Al Reem Island and Masdar City have shown a good level of interest from potential buyers. These areas alone have raked in close to half a million views in 2019 from users on Bayut, searching for properties available for sale in Abu Dhabi. The appeal is fairly evident; these are all family-friendly communities developed by reputed builders with major tourist attractions, schools and hospitals.”

And that concludes the Abu Dhabi Q3 2019 market report on property prices. Keep following MyBayut for in-depth reports on the Dubai, Sharjah and Ajman real estate markets.

Data Sourcing & Analysis Disclaimer: All prices in this report are quoted in AED, and rents are stated on an annual basis. Asking prices by area and bed type, prices per sq. ft., and gross rental yields are based on average listing sale and rent prices in Abu Dhabi on Bayut.com, as per the properties advertised by real estate agencies on behalf of their clients. Figures represent advertised prices only and do not reflect actual transaction prices unless stated. Areas and off-plan projects mentioned in the article are stated based on their popularity as per the user search activity on the platform. 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. The analysis compares the last three months with the previous three-month period, as of September 2019.