In the second half, Abu Dhabi real estate appears to be more promising

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Abu Dhabi

According to a leading property portal, the Abu Dhabi real estate market outlook appears to be improving, with demand for villas and apartments continuing to rise.

According to Zoom Property Insights, the second half of 2022 looks more promising for Abu Dhabi’s real estate sector, as the market began the year on a high note, fueled by mega-developments, Al Etihad Rail expansion, and rising oil prices.

Abu Dhabi

In the first quarter of 2022, Abu Dhabi’s market saw slightly more than 3,300 transactions worth more than Dh11.3 billion. According to Zoom Property Insights, the second quarter is expected to end on a similar note, paving the way for a strong 2022.

According to a recent report by property market experts Asteco, strong real estate market activity in Abu Dhabi in the first three months of 2022 will be driven by a number of government initiatives, economic growth, and improved market sentiment.

According to property Asteco, approximately 3,800 residential units were delivered in Abu Dhabi’s residential and office market in Q1 2022, spread across various areas of Abu Dhabi including Al Raha Beach, Al Reem Island, Yas Island, and Saadiyat Island, as well as several other residential areas.

“In Abu Dhabi, 6,000 residential units will be delivered by 2021.” However, the number will exceed this year, with around 7,000 units expected to be delivered in 2022. As a result of this, property prices will rise steadily in the second half. According to Zoom Property Insights, “demand for luxury properties in island communities such as Yas Island and Saadiyat Island will continue to rise in H2.”

According to Ata Shobeiry, CEO of Zoom Property, the property market will perform well in the second half of 2022 due to new mega-developments, Etihad rail expansion, and rising oil prices.

Hydra Village, Al Reef, Khalifa City A, Saadiyat Island, Al Raha Gardens, and Yas Island are expected to be the top villa destinations in Q2 2022.

The Abu Dhabi property market is expected to grow steadily over the next 12 to 18 months, following a strong recovery over the previous 12 to 18 months.

“The Abu Dhabi real estate market has a promising outlook because international investors in general, and European buyers in particular, have shown interest in the emirate’s residential, commercial, and industrial projects, generating massive 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 encouraging sales figures by the end of the year,” Shobeiry said.

The Asteco report said numerous residential and mixed-use projects located within the Investment Zones are expected to start construction in 2022 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, Asteco analysts said in a report.

Average villa rental rates grew by 2.0 per cent in Q1 2022, with some developments recording increases of close to 10 per cent. Average annual increases stood at 5.0 per cent, according to Asteco.

source: Khaleej Times

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