Abu Dhabi Real Estate Market Overview

Q1 – Q2 – Q3 - Q4 / 2015

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The fourth quarter statistics of 2015 have been released recently showing the following interesting

results for investors, buyers, landlords and tenants.

The overall results have shown a stable flow in terms of real estate market activity with a slight

slowdown in leasing, where the demand has moved by -4% compared to Q3 and went back to

same results as Q2.

Looking at the demand by area, Al Raha Beach, Al Raha Gardens, Al Reef Villas, as well as Al

Ghadeer, are the most demanded areas in Abu Dhabi, then comes Saadiyat through the new

developments offered in the market by Soho Square and Hidd Al Saadiyat, with a noticeable

slowdown in sales trends of 1% for both areas Al Reem Island and Hydra Village.

The leasing trends, however, stayed on the same level as Q3 for Al Reef downtown and Villas, Al

Reem Island, as well as Golf Gardens.

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Sales Leasing

Sales & Leasing Trends Q1 - Q2 - Q3/ 2015

Q1 Q2 Q3

Looking at the real estate market trends by unit type, we can notice the slight decline in one and

two bedroom apartment towards the Studio, and the shift from a three bedroom apartment to a four

bedrooms.

The most demanded apartments for sale in the market remain the 2 bedrooms with a slight

decrease in demand, followed by 1 bedroom apartments which have seen a small shift to the Studio

type compared to Q3. The 4 bedroom apartment remains at a steady increase in demand.

However, the sales for villas are different from the above mentioned figures, showing a big

fluctuation in demand. The 2 bedroom villa has decreased by around 50% which same rate has

been gained in the 2 bedroom type which makes of it the most demanded type on the market,

equally followed by the 2 bedroom and the 4 bedroom apartments. The 5 bedroom apartment has

also increased in demand of around 50%.

Abu Dhabi Baniyas Al Ghadeer Al RahaBeach

Al RahaGardens

Al ReefDowntown

Al ReefVillas

GolfGardens

HydraVillage

Khalifa Al Reem Saadiyat

Leasing Trends By Area

Leasing Leasing Leasing

Studio 1Br 2Br 3Br 4Br

Sales Trend By Apartment Type

Q1

Q2

Q3

Now, the figures issued for the units acquisition (by investors and end-users) reflect a slight

difference from the leasing market trends where the lead has shifted from the 1 bedroom in leasing

to 2 bedroom apartments, but the demand remains less than Q3 for all kind of apartments, except

the studios.

The overall demand trend for villas in terms of leasing is facing a big slow-down, except the 6

bedrooms remain in a steady increase.

2Br 3Br 4Br 5Br 6Br+

Sales Trend By Villa Type

Q1

Q2

Q3

Studio 1Br 2Br 3Br 4Br

Leasing Trend By Apartment Type

Q1

Q2

Q3

2Br 3Br 4Br 5Br 6Br+

Leasing Trend By Villa Type

Q1

Q2

Q3

Properties offered in the market consist of four categories: Apartments, Duplexes, Villas and

Townhouses.

As the demand is increasing for such units available in the market, the prices remain coherent to

reach a point of equilibrium in terms of offer and demand. The price range of the units offered for

sale is from 550,000 AED to approximately 6,000,000 AED depending on the area and the size of

the property.

Quarter four market prices is presented for seven areas within the emirate of Abu Dhabi where the

demand is seeing a constant growth through the years.

Abu Dhabi is one of the most secure lands to invest in. Either end users or investors, both are

buying with a target payoff of a few number of years.

Considering the area where to invest, the buyer should look at the Return on Investment as well as

the rentals back calculation that each unit and area can offer.

Taking Al Reef development as an example, this last generates more than 8% for the apartments,

followed by Al Ghadeer which offers around 7.5% ROI to investors. Then, Al Raha Beach’s Studio

and 1 bedroom apartments offer a bigger ROI which can reach more than 6.5%.

Al Reem Island, however, generates a bigger ROI for the 4Br – reaching the 8%; then come the

smaller ones with more than 7%.

Al Reem Island offers one of the best investment options, such as The Kite Residences and The

Wave tower which are AABAR developments.

Al Saadiyat Island generates a variety of ROIs depending on the project, villas and apartments

wise.

However, Bloom has just launched a new and juicy project on the Island called Soho Square

(inspired from New York’s Soho as it is neighboring the New York Institute) where most of the

apartments have been sold out within less than a month.

The same developer, have recently placed on the local market a wonderful compound, located on

Abu Dhabi’s island offering a nice range of luxurious villas and townhouses with very competitive

rates, called Bloom Gardens.

Same for the villas within the region, Al Reef villas generate a juicy rate of ROI for investors

reaching the 8.5%.

However, villas in Al Ghadeer are a relatively less attractive compared to the Apartments by

generating respectively 5.8% and 7.5% ROI.

Al Raha Gardens, as well as The Golf Gardens, offer the same rate of ROI of around 5.5%.

Then comes Al Saadiyat Island with an ROI reaching the 4.5%.

The townhouses are also interesting to look at. The return on investment offered by the townhouses

in Al Ghadeer are more attractive than the villas with a rate of 6% compared to 5.8%. Al Raha

Beach townhouses offer a descent rate of 5%, a bit lesser than Al Raha Gardens and The Golf

Gardens offering respectively a rate of 6.5% and 6%.

These figures show that it’s more attractive for a buyer to get a townhouse than a villa, in these last

two areas.

The overall real estate market is prosperous for investors to make good resolutions and good deals.

Don’t hesitate to contact Nationwide Middle East Properties for more information and for any

support. The consultancy service is free of charge.

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