Bayut.com: Year-on-Year Real Estate Market Report

Abu Dhabi Rent and Sales Price Remain Stable in 2017

Bayut.com, the UAE’s data-driven property portal, launches their Year-on-Year real estate report with a focus on Abu Dhabi’s residential market’s ready properties.

  • The most in-demand area for both renting and buying flats in the UAE capital this year is Al Reem Island
  • Khalifa City A is the most popular for villa rentals, while Al Reef dominates the end-users’ interest in villa buying
  • The Return on Investment (ROI) is still a high 6.7% for apartments, and a stable 6% for villas

The average rental price is on a decline across Abu Dhabi 

Al Reem Island is the most in-demand area among Abu Dhabi tenants this year with studios, 1-beds and 2-beds commanding AED 60k, 82k and 120k, respectively, (14% decline from 2016).

Mohammed Bin Zayed City is the most affordable area for renting apartments, with studios, 1-beds and 2-beds demanding AED 30k, 47k or 65k, respectively (12% lower than last year). On the other hand, The Corniche Area, the most expensive for apartment rentals among popular areas, has experienced a 12% decrease in price from 2016. The average rent in The Corniche Area is AED 80k, 100k and 135k, depending on property type.

Meanwhile, the price of 2-bed flats on Airport Street is 29% lower at AED 85k per year, which was the most significant drop among popular areas of Abu Dhabi for apartment units. Studios in Khalifa City A command the same AED 36k they did last year.

The most popular area for renting villas in 2017 is Khalifa City A, especially because of the fall in average rents to AED 155k, 180k and 200k for 3, 4 and 5-beds, respectively (a 4-10% drop from 2016).

Mohammed Bin Zayed City is the most affordable area among the top localities for villa renting on Bayut.com. The average yearly lease in MBZ City costs AED 120k, 150k and 165k for 3-beds, 4-beds and 5-bed villas, in that order (5-14% decrease from 2016). On the other hand, Bain Al Jessrain is still the most extravagant popular area of Abu Dhabi for villa renting, demanding AED 200k-250k depending on property type on average (3-4% decline from 2016).

ROI remains stable in Abu Dhabi

The most popular area of the capital for buying an apartment in 2017 is Al Reem Island where the price has gone down 6-8%, depending on property type.  A keen investor can now buy a studio, 1-bed or 2-bed flat in Al Reem Island for AED 680k, 1.1M or 1.7M, respectively.

Out of the most browsed areas for buying a flat on Bayut.com, Al Raha Beach offers the highest-priced studios at AED 1.2M, (an 8% price fall from 2016). The costliest 2-bed apartments among popular areas of Abu Dhabi can be found in Saadiyat Island, with AED 2.6M average price (an 11.7% decline from 2016).

Al Ghadeer is the most affordable of the highly sought-after apartment areas, with studios there selling at an average price of AED 500k (5.7% lower than last year). Masdar City is not far behind with the average price of AED 540k on studios (1.8% decline from 2016).

The most browsed area on Bayut.com is Al Reef with 3-beds, 4-beds and 5-beds advertised at AED 1.7M, 2.2M and 2.6M, respectively, which is 7-12% cheaper year-on-year.

Saadiyat Island is still the most expensive area for buying villas in Abu Dhabi, with a 5.7% price fall on 3-bed villas from last year. The average asking price on villas in Saadiyat Island ranges from AED 6.6M to AED 10M for 3, 4 and 5-bed villas. Prices for 5-bed villas have remained unchanged from last year.

Off-plan Properties Affect Overall Price Trends

The sales price of apartments in Al Reem Island has seen a downward trend because of an increased supply of off-plan listings.

Conversely, Saadiyat Island had a smaller inventory of apartments in 2017 increasing the demand and raising the overall average sales price to AED 1.9M.

The number of listings of villas on Yas Island priced around AED 3M also increased. This has resulted in the average price falling from AED 3.8M to AED 3.6M. In Khalifa City A, the completion of a project selling at the average price of AED 6.8M has also resulted in a drop in the average asking price of 5-bed properties.

Corniche Area’s off-plan sub-community Saraya is the most visited on Bayut.com in 2017, followed by Saadiyat Island’s Soho Square Residences, and Park View. On the nearby Yas Island, Water’s Edge is the most searched off-plan sub-community, closely followed by Ansam. The trend can be attributed not only to the strong media presence of these projects, but also to the quality of lifestyle that they promise to investors and home buyers alike.

Disclaimer: The above report is based on 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.

2018 Forecast

The CEO of Bayut.com, Haider Ali Khan, said: “At Bayut.com, our goal is to place extensive data-based reports and area guides at the fore of all UAE house hunting intelligence to help renters and investors alike make sound real estate decisions.”

Khan continued: “As more and more off-plan projects are completed in 2018, handed over and put on the secondary market, we can expect prices continuing to attract investors while landlords will have to stay competitive to entice potential tenants. In the long run, as the market and the broader economy move along a trajectory of diversification and maturity, the opportunity for developers and sellers to capitalise on their investment remains strong.”

About Bayut.com: Bayut.com is one of the leading property portals in the UAE, currently holding the highest number of rental listings in Dubai. It is a data-centric advertising platform with website, app and blog that support CEO Haider Ali Khan’s aim to make Bayut.com the market leader in providing valuable market insights for renters and investors alike. The company was founded in 2008 and has since won the title of the most well-funded property portal at $29M as well as the ‘Best Property Portal’ at CNBC Arabian Property Awards. The company operates across the UAE, with headquarters in Dubai Design District.

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