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Abu Dhabi's 2021 residential capital values up 11pc

ABU DHABI, January 25, 2022

Abu Dhabi's residential capital values rose 11% annually and 2.1% quarterly to 70.2 points, fully recovering from pandemic fallouts, and performing better than 2019 by 1.7%. However, prices are still 29.8% below 2016 levels, according to the valuation-based house price index VPI. 
 
The UAE capital saw a total of 4,182 apartments and villas being completed last year, it stated.
 
Residential property saw its highest annual price rise in 5 years. With a full recovery from pandemic fallout now evident, homes in Abu Dhabi are up 1.7% as compared to pre-Covid 2019. 
 
Citywide annual rents increased 3.1% annually and 2.3% since the previous quarter, it stated.
 
All properties monitored by the VPI saw annual growth in capital values ranging from 7% to 13.5%. The weighted average residential value this quarter was AED9,171 per sq m, apartments stood at AED10,000 per sq m and villas at AED7,201 per sq m.
 
According to VPI, locations with highest annual gains were villas in Al Reef (13.5%), Saadiyat Island (13.5%), and Al Raha (12.9%). Al Reem Island had the best performing apartments (10.4%) followed by Al Muneera Island (9.8%), and Al Bandar (8.4%). 
 
Citywide annual rents in Abu Dhabi increased 3.1% annually and 2.3% since the previous quarter. Villa rents increased 2% YoY, 2.6% QoQ, that’s compared with apartments at 4.1%
YoY, 2.1% QoQ. Abu Dhabi’s gross yields averaged 7.1%, for apartments at 7.4% and villas with 6.3%.
 
For 2021, there were a total of 4,182 apartments and villa units which finished construction in eighteen projects. This constituted 34.3% of total forecasted new build units for the year.
 
The new build units were constructed in Al Raha Beach and Yas Island with 30%, and Al Reem Island having 24% of overall units.
 
Notable completions during the fourth quarter included Al Ghadeer phase 2 (611 units), Al Raha Lofts (278 units) and Marina Rise Tower (234 units) with no villa completions.
 
During Q4, the last phase of Yas Acres project Dahlias was launched with 120 units.
 
According to VPI, the average citywide residential asking price per sq ft during the quarter continued its growth trajectory and was up 1.9% QoQ and 8.6% YoY.
 
The average asking price for ready apartments stood at AED12,908 per sq m, up 2.6% QoQ and grew 6.9% YoY. For ready villas, the average asking price surged to a record high of AED10,844 per sq m, up 12.4% YoY.
 
The Department of Municipalities and Transport had reported a total of AED39.7 billion worth of real estate transactions during the first nine months of 2021, stated VPI in the Abu Dhabi Real Estate Market 4th Quarter 2021 Review.
 
Overall average residential asking rents witnessed a 3.1% YoY growth, its second highest growth recorded.
 
On a quarterly basis, citywide average asking rents in Abu Dhabi rose 2.3% with apartments  improving 4.1% YoY and growing 2.1% QoQ, while the citywide villa asking rents increased 2% YoY and up 2.6% QoQ.
 
Most areas monitored saw quarterly increases with exception of villas in Mohammed bin
Zayed City and Hydra Village as well as apartments in Al Bandar and Al Reef.
 
According to VPI, the average annual apartment asking rents were as follows: Studios (AED 51,000), one-bed (AED 80,000), two-bed (AED 116,000) and three-bed room units (AED 160,000).
 
For villas, the annual rents for two-bed units hit AED112,000, three-bed (AED134,000) and
four-bed (AED210,000).



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