Their ups and downs in the third quarter of 2022

How did the general market perform in Abu Dhabi in the third quarter?

Data from property consultancy Asteco showed the market was largely stable between July and September, with the exception of some prime and prime developments where rents rose significantly.

In its third-quarter report, the company said average villa prices rose 2% quarter-on-quarter and 4% year-over-year, while condo prices rose 1% quarter-on-quarter and 1% year-over-year.

This follows stagnant interest rates in the second quarter.

“Rents for several low-quality buildings on the main island of Abu Dhabi fell slightly,” the report said.

“This is mainly due to the increase in relocations from the city to areas where significant new supply has been delivered and handed over over the years, including Al Reem Island.”

Real estate broker JLL reported that average annual rents in the capital edged up 2%, noting strong demand for new developments in investment zones, especially townhouses and villas.

Bayut and dubizzleMeanwhile, the company said average rents in the affordable segment were largely stable, fluctuating as much as 5% a year for certain bed types, compared with 11% for luxury rents.

This UAE real estate market The index has grown sharply over the past year as the broader economy recovers from the coronavirus-induced slowdown.

Where in Abu Dhabi has the biggest rent increase?

According to Asteco, the villas segment showed quarterly increases of 4% in Al Raha Beach and Hidd Al Saadiyat. The latter has some of the most expensive properties in the city for rent, with annual rents of up to AED700,000 (US$190,605).

Saadiyat Island saw the biggest quarterly increase in apartment rents at 3%.

Demand for larger homes has remained steady since the shift to larger properties early in the pandemic.

“This drives up the price of rental villas, especially in the luxury segment,” Bayut and dubizzle said. “With regard to the affordable segment, landlords are pricing their properties competitively to make them more attractive to tenants.”

Tenants on a tighter budget prefer areas such as Khalifa City A, Al Khalidiya, Mohamed bin Zayed City and Al Muroor, while Al Reem Island is the most sought after for luxury apartments.

What is the availability of new units?

JLL said it expects to deliver 2,000 units in the remainder of 2022, with a total inventory of 278,000 units.

Meanwhile, Asteco reported that it delivered 1,000 units in the third quarter on Al Raha Beach, Al Reem Island and Saadiyat Island.

“The third quarter also recorded a number of notable project launches, including Ain Al Maha Village on Al Jubail Island Comprising about 240 villas and Yas Park Gate, once completed, it will bring about 500 residential units to the market,” Asteco said.

“Several other projects have been launched in the past four to six months, mainly consisting of residential units with ancillary retail. These are expected to start construction in the next three to six months.”

Asteco said it completed 5,100 apartments in the first half of the year, 1,000 in the third quarter, and expects to complete another 2,350 in the fourth quarter and 100 villas by the end of the year.

What other projects are in the pipeline in Abu Dhabi?

A lot of important news has been announced this year.

Aldar launched last week Saadiyat Lagoona nature-inspired residential community located in one of Abu Dhabi’s most desirable areas.

The first phase, which will see the launch of 207 villas, will be exclusively available to UAE buyers on 3 November. Prices start from AED 6.1 million.

Aldar has recently Grove District on Saadiyat Islandwhich launched earlier this year Louvre Apartment.

This will be close to the Zayed National Museum, Louvre Abu Dhabi and Guggenheim Abu Dhabiand will include five residential towers with a total of 612 units.

Bloom Holdings launched The second phase of the Bloom Living projectwhich will provide more than 4,000 residential units upon completion.

on the island of Rem, Reem Hills will be AED8 billion (AED 170 million) gated community, covering 1.8 million square meters, will be built on a man-made hill – a first for the UAE capital.

Updated: 10/31/2022 4:30am