Backed by mega-developments, Al Etihad Rail expansion, and rising oil prices, the second half of 2022 looks promising for Abu Dhabi real estate sector as the market started off the year with promising numbers.
- Abu Dhabi records over 3,300 transactions in Q1 2022 valuing AED 11.3 billion.
- The delivery of 7,000 residential units estimated to take place in 2022.
- The demand for luxury properties expected to increase in H2, 2022.
- New developments, rising oil prices, and Al Etihad Rail expansion expected to play a major role in the growth of the property market.
- Masdar City, Al Reef, Baniyas, and Al Ghadeer set to dominate the affordable apartments segment.
- Saadiyat Island, Yas Island, and Al Raha Beach to occupy top spots among communities for luxury apartments.
- Hydra Village, Al Reef, Khalifa City A, Saadiyat Island, Al Raha Gardens, and Yas Island will remain top picks for affordable and luxury villas during H2, 2022.
Abu Dhabi’s real estate market has started on a strong note as the first quarter recorded a little over 3,300 transactions valuing more than AED 11.3 billion. The second quarter is expected to end on a similar note, paving the way for a strong 2022, according to the Zoom Property Insights.
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 note that the demand for luxury properties in island communities, such as Yas Island and Saadiyat Island will continue to rise in H2.
Ata Shobeiry, CEO at Zoom Property, believes the Abu Dhabi property market will pack in a strong performance in the second half of 2022 due to new mega-developments, Etihad rail expansion, and rising oil prices.
He said, “with the launch of many new developments along with the expansion of Etihad Rail, the emirate aims to capitalise on this upward trend and produce favourable 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.”
According to prevalent trends, Masdar City, Al Reef, Baniyas, and Al Ghadeer remain the preferred areas for affordable apartments in Abu Dhabi. With over AED 1,550 per square foot, Saadiyat Island topped the communities for luxury apartments. It was followed by Yas Island and Al Raha Beach with AED 1,270 and AED 1,220, respectively. According to the Zoom Property Insights, these communities will continue their upward trajectory during the second half of the year as well.
For villas, Hydra Village, Al Reef, Khalifa City A, Saadiyat Island, Al Raha Gardens, and Yas Island are expected to remain the preferred choice among buyers during Q2, 2022.
With a strong recovery over the preceding 12 to 18 months, the Abu Dhabi property market is expected to witness steady growth over 2022 and beyond.
“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 concluded.
About Zoom Property (www.zoomproperty.com)
Zoom Property is an emerging property portal in the UAE with a primary focus on Dubai, Abu Dhabi and Sharjah markets. The portal also features international properties in KSA, the UK and other regions on the platform to facilitate buyers and renters. It is also popular among developers, real estate brokerages and property sellers.