2018 Report: Prices falling in most areas of Abu Dhabi
Bayut.com – the UAE’s leading online property portal – has released its H1 2018 report for Abu Dhabi properties.
H1 2018 report
The cost of renting and buying property in Abu Dhabi has decreased overall from H2 2017 to H1 2018, as per Bayut.com’s H1 2018 market report for Abu Dhabi.
-Average apartment rental prices fell, but price decreases were for the most part modest, with the largest decreases around 9-10%.
-The steepest price falls for rental villas were for 5-bed properties in Khalifa City B, where they fell by 16.67%.
-Decreases were modest overall, with the largest being 10.45% for studio apartments in Al Reef.
-Villa sales prices were more stable than in other sectors, with the largest decreases for 5-bed properties on Saadiyat Island, which fell by 7.3%. Elsewhere, prices fell by 1-5%.
Buyers and renters continue to have the upper hand in the Abu Dhabi property market, but price decreases are overall slightly more modest than in Dubai.
Prices fell by between 1-10% for apartment sales in Abu Dhabi, with the largest decreases being in Al Reef, where the average prices for studios, 1-bed, and 2-bed apartments are all now under the AED 1M mark.
Villa sales prices experienced the smallest decreases of all. Outside Saadiyat Island, the steepest falls being in Hydra Village – a 5.25% average decrease for 3-bed properties.
The areas where apartment rental prices fell the most were Al Khalidiya where the cost of a 2-bed decreased by 9.52% and Al Reem Island, where prices fell by 5-9%.
Price variations were more pronounced in villa rentals, with the biggest decrease in Khalifa City B, where the cost of renting a 5-bed villa falling by 16.67%.
Average prices in top areas
The most popular areas for apartment rentals were Mohammed bin Zayed City, where the price for a 1-bed apartment was AED 45k. For sales, it was Al Reem Island, where average studio prices were AED 626k.
For villa sales, Al Reef came out on top, with the average price for a 4-bed AED at 2.15M. For rentals, Khalifa City A was the most popular area and saw the average price for a 4-bed property fall by 5.71% to AED 165k.
There were clear favorites when it came to areas within each community, with Saadiyat Beach accounting for more than 50% of all Bayut users’ rental property searches on Saadiyat Island. In addition, AlMushrif Gardens was the most popular in its area for sales, with searches for villas for sale in Al Mushrif accounting for more than 55% of those for the area.
Popular off-plan projects
Potential investors in Abu Dhabi showed clear favorites in terms of off-plan projects in H1 2018. Shams Abu Dhabi was the most popular out of all the sub-communities on Al Reem Island, accounting for 98.03%of searches in the area. Jawaher Saadiyat was the most popular project for those looking to invest in Saadiyat Island, taking up 42.31% of searches, while Yas Acres was the most searched for Yas Island with31.34% of searches.
Haider Ali Khan, CEO of Bayut, said: “We have seen a pattern of decreasing prices in our recent market analysis based on listed prices by brokers, but in some areas, the decreases were small, which may suggest that some stability is returning to the market.”
Khan added: “Although it seems unlikely that we will see any large increases in rental or sales prices prior to the end of 2018, it is likely that we will see more stability in the later half of the year.”
For more, contact: Bayut.com