Buoyed by mega-developments, the expansion of Al Etihad Rail and rising oil prices, the second half of 2022 looks promising for Abu Dhabi’s real estate sector as the market started the year with strong promising figures
Abu Dhabi records more than 3,300 transactions in the first quarter of 2022 worth 11.3 billion dirhams. — Photo provided
Abu Dhabi’s real estate market got off to a good start as the first quarter saw just over 3,300 transactions worth over MAD 11.3 billion. The second quarter should end on a similar note, paving the way for a strong 2022, according to Zoom Property Insights.
2021 saw the delivery of 6,000 residential units in Abu Dhabi. However, the number will exceed this year with the expected delivery of around 7,000 units in 2022. With this, property prices will also rise in the second half of the year but at a steady pace. Zoom Property Insights notes that demand for luxury properties in island communities, such as Yas Island and Saadiyat Island, will continue to increase in the second half of the year.
Ata Shobeiry, CEO of Zoom Property, believes the Abu Dhabi property market will see a strong performance in the second half of 2022 due to new mega-developments, Etihad’s rail expansion and rising oil prices.
He said: “With the launch of many new developments as well as the expansion of Etihad Rail, the emirate aims to capitalize on this upward trend and deliver favorable results in the second half. Oil prices will allow the government to diversify its resources, which will benefit many sectors across the emirate, including the property market.
Top areas for apartments and villas
According to prevailing trends, Masdar City, Al Reef, Baniyas and Al Ghadeer remain the hotspots for affordable apartments in Abu Dhabi. At more than Dh1,550 per square foot, Saadiyat Island leads the communities for luxury apartments. It was followed by Yas Island and Al Raha Beach with Dh1,270 and Dh1,220 respectively. According to Zoom Property Insights, these communities will also continue their upward trajectory in the second half of the year.
For villas, Hydra Village, Al Reef, Khalifa City A, Saadiyat Island, Al Raha Gardens and Yas Island are expected to remain the preferred choice for buyers during the second quarter of 2022.
With a strong recovery over the previous 12-18 months, the Abu Dhabi property market is expected to see steady growth in 2022 and beyond.
“Abu Dhabi’s real estate market has promising prospects as international investors in general and European buyers in particular have shown interest in residential, commercial and industrial projects in the emirate, generating huge demand in the sector. in the first five months of 2022. This trend should continue in the second half and we could see more promising sales figures by the end of the year,” concluded Shobeiry.
Key points to remember
• The delivery of 7,000 residential units are expected to take place in 2022.
• Requirement for luxury properties is expected to increase in H2 2022.
• New developments, rising oil prices and the expansion of Al Etihad Rail are expected to play a major role in the growth of the real estate market.
• Masdar City, Al Reef, Baniyas and Al Ghadeer are expected to dominate the affordable apartment segment.
• Saadiyat Island, Yas Island and Al Raha Beach rank first among communities for luxury apartments.
• Hydra Village, Al Reef, Khalifa City A, Saadiyat Island, Al Raha Gardens and Yas Island will remain top choices for affordable and luxury villas in the second half of 2022.