Abu Dhabi’s prime residential community prices rose by almost 30 per cent in the fourth quarter of 2013, according to propertyfinder.ae.
Reem Island recorded the highest rise in prices for the second consecutive year, comprising around 30 per cent of online searches for properties.
According to the property portal, whilst prices of studio apartments in Reem Island remained stable, those of one, two and three bedroom apartments rose 14 per cent, 15 per cent and 6.6 per cent respectively.
Property prices in Al Reef community showed a larger increase with the cost of studio apartments rising 38 per cent while one, two and three bedroom apartment prices rose by 36 per cent, 34 per cent and 28 per cent respectively.
Al Raha beach, which was the third most searched property online, showed bigger variations in price rises with the cost of studios rising 31 per cent. One bedroom units were up by 15 per cent whilst two and three bedroom properties rose by 16 per cent and 20 per cent respectively.
The report also indicated a surge in Abu Dhabi’s ultra luxury market such as Nurai Island – a private villa development near Saadiyat island- as it jumped to 10th position in Q4. Sales prices of five and six bedroom villas in the development also rose 24 per cent and 22 per cent respectively.
“Abu Dhabi’s real estate market surely showed signs of stabilisation and growth last year,” said Renan M. Bourdeau, deputy CEO of propertyfinder.ae.
“The Expo 2020 site which is being developed in Jebel Ali, equidistant between the centres of Abu Dhabi and Dubai, is likely to benefit the Abu Dhabi market as well. Moreover, the advantages that Dubai’s economy will enjoy as a result of the Expo win will spill over to Abu Dhabi’s hospitality and short-stay property sectors, the latter of which is great news for investors.
“Governments are introducing initiatives to better regulate market fluctuations and with increased choice of quality stock, investor interest up and major infrastructure projects underway, the outlook for Abu Dhabi’s realty sector seems geared for positive change,” he said.
Abu Dhabi’s residential prices rose by five per cent in Q3 2013 while rents did not vary much, according to a Jones Lang LaSalle report.
Although the capital’s prime locations continued to see a rise in rents, the majority of secondary units saw a decline in rental rates last year.
Recently the government also scrapped a five per cent cap on rental increases, in an effort to open up Abu Dhabi’s property sector where many are paying below the market rents.