Prices and rents for apartments in Abu Dhabi declined on average between 4 per cent to 11 per cent during the first half of this year, according to a new report by online property firm Bayut.
While freehold communities such as Al Reef and Al Raha Beach witnessed price drops of around 13 per cent, emerging areas like Al Ghadeer saw an uptick in prices with the rates for two-bedroom units going up by 6.7 per cent.
“This can be attributed to the recent off-plan deliveries of larger units in the neighbourhood, leading to greater price fluctuations,” a statement said.
For apartment rentals, Al Muroor posted a decrease of 10.7 per cent for one-bedroom units, followed by Khalifa City A, where prices for studios dropped by 9.7 per cent.
Prices to buy and rent villas in Abu Dhabi also fell in H1. In terms of sales, the most notable decrease was seen in Al Reef, where three-bedroom and five-bedroom villa prices dropped by 5.9 per cent and 7.8 per cent respectively. Looking at rentals, both Saadiyat Island and Al Mushrif posted decreases of 9.1 per cent for certain units.
Overall, Al Reem Island was found to be the most popular area in Abu Dhabi to buy and rent apartments, followed by Al Raha Beach for villa sales and MBZ City for villa rentals.
“In the first half of 2019, we’ve seen Abu Dhabi take significant steps to cement its position as an attractive option for global investors by opening up its freehold market,” said Haider Ali Khan, CEO of Bayut.
The Abu Dhabi government announced in April that an amendment has been made to its property ownership laws that will now allow all nationalities to buy freehold property in investment zones, which include areas such as Yas Island, Saadiyat Island, Al Reem Island, Al Raha Beach, Al Reef and Masdar City.
“The competitive pricing of the housing market, combined with ongoing development in infrastructure and tourism will not only bolster Abu Dhabi’s position as a global investment destination but also as a place for residents to establish roots,” added Khan.