Abu Dhabi realty looks more promising in second half
Abu Dhabi real estate market outlook appears brighter with demand for villas and apartments continuing to surge, according to a leading property portal.
The second half of 2022 looks more promising for Abu Dhabi’s real estate sector as the market started off the year on a buoyant note backed by mega-developments, Al Etihad Rail expansion, and rising oil prices.
In the first quarter of 2022, Abu Dhabi’s market recorded a little over 3,300 transactions valuing more than Dh11.3 billion. The second quarter is expected to end on a similar note, paving the way for a strong 2022.
A recent report by property market experts Asteco also reported strong real estate market activity in Abu Dhabi in the first three months of 2022 on the back of a string of government initiatives, economic growth, and improved market sentiment, market analysts said.
Across Abu Dhabi’s residential and office market, around 3,800 residential units were delivered in Q1 2022, spread across different areas of Abu Dhabi including Al Raha Beach, Al Reem Island, Yas Island and Saadiyat Island and several other residential areas, according to property Asteco.
“The year 2021 saw the delivery of 6,000 residential units in Abu Dhabi. However, the number will surpass this year with the expected delivery of around 7,000 units in 2022. With this, the property prices will also increase in the second half but at a steady rate. The Property Insights note that the demand for luxury properties in island communities, such as Yas Island and Saadiyat Island will continue to rise in H2,” the portal said.
Khurram Farooq, the head of Azco Real Estate said that property market will pack in a strong performance in the second half of 2022 due to new mega-developments, Etihad rail expansion, and rising oil prices.
“With the launch of many new developments along with the expansion of Etihad Rail, the emirate aims to capitalise on this upward trend and produce favourable results in the second half of the year. In addition, the higher oil prices will enable the government to diversify its resources. This will benefit many sectors across the emirate, including the real estate market”.
Masdar City, Al Reef, Baniyas, and Al Ghadeer remain the preferred areas for affordable apartments in Abu Dhabi. With over Dh1,550 per square foot, Saadiyat Island topped the communities for luxury apartments. It was followed by Yas Island and Al Raha Beach with Dh1,270 and Dh1,220, respectively. According to the Property Insights, these communities will continue their upward trajectory during the second half of the year as well.
For villas, Hydra Village, Al Reef, Khalifa City A, Saadiyat Island, Al Raha Gardens, and Yas Island are expected to remain the preferred choice among buyers during Q2, 2022.
With a strong recovery over the preceding 12 to 18 months, the Abu Dhabi property market is expected to witness steady growth over 2022 and beyond.
“The real estate market in Abu Dhabi has a promising outlook as international investors in general and European buyers, in particular, have shown interest in the emirate’s residential, commercial and industrial projects, generating huge demand in the sector during the first five months of 2022. This trend is expected to continue in the second half and we may see more promising sales numbers by year-end,”.
The Asteco report said numerous residential and mixed-use projects located within the Investment Zones are expected to start construction in 2022 and a large majority of Abu Dhabi developers are now considering developing new residential and mixed-use projects in different areas of Abu Dhabi as a result of the generally positive market sentiment, Asteco analysts said in a report.
Average villa rental rates grew by 2.0 per cent in Q1 2022, with some developments recording increases of close to 10 per cent. Average annual increases stood at 5.0 per cent, according to Asteco.