According to a renowned property portal, the Abu Dhabi real estate market forecast is improving, with demand for villas and flats continuing to rise.
According to Zoom Property Insights, the second half of 2022 appears more optimistic for Abu Dhabi’s real estate sector, as the market began the year on a high note, buoyed by mega-developments, Al Etihad Rail extension, and rising oil prices.
In the first quarter of 2022, the Abu Dhabi market saw little over 3,300 transactions worth over Dh11.3 billion. According to a report by Zoom Property Insights, the second quarter is projected to end on a similar tone, paving the way for a solid 2022.
According to market analysts, significant real estate market activity in Abu Dhabi in the first three months of 2022 was driven by a series of government initiatives, economic development, and improved market confidence, according to a recent analysis by property market experts Asteco.
According to property Asteco, roughly 3,800 residential units were delivered in Abu Dhabi’s residential and office market in Q1 2022, spanning numerous locations of Abu Dhabi, including Al Raha Beach, Al Reem Island, Yas Island, and Saadiyat Island, as well as several other residential districts.
“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 Zoom Property Insights notes 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.
Due to new mega-developments, Etihad train extension, and growing oil prices, Ata Shobeiry, CEO of Zoom Property, believes the property market will perform well in the second half of 2022.
“With the launch of many new developments along with the expansion of Etihad Rail, the emirate aims to capitalize on this upward trend and produce favorable 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,” said Shobeiry.
Masdar City, Al Reef, Baniyas, and Al Ghadeer continue to be the most popular places in Abu Dhabi for finding affordable apartments. Saadiyat Island topped the list of neighborhoods for luxury flats, with a price per square foot of about Dh1,550. Yas Island and Al Raha Beach came in second and third, with Dh1,270 and Dh1,220, respectively. According to Zoom Property Insights, these communities will continue to rise in value over the second half of the year.
During the second quarter of 2022, customers are predicted to pick Hydra Village, Al Reef, Khalifa City A, Saadiyat Island, Al Raha Gardens, and Yas Island for villas.
The Abu Dhabi property market is forecast to develop steadily through 2022 and beyond, following a solid rebound over the previous 12 to 18 months.
“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,” Shobeiry said.
According to the Asteco report, 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, 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.
In Q1 2022, average villa rental rates increased by 2.0%, with some developments seeing rises of up to 10%. According to Asteco, average annual increases were 5.0 percent.