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Time Out Abu Dhabi
5 days ago
- Business
- Time Out Abu Dhabi
Your guide to the rising property prices in Abu Dhabi
House hunting in Abu Dhabi? You might want to start saving a little more aggressively. The capital's property market has just clocked its strongest capital gains in three years, even though sales activity has taken a tumble. That's according to ValuStrat's latest Q1 2025 report, which shows a market surging in value while grappling with a slowdown in transactions. Property values rose by 2.1 percent quarter-on-quarter and a healthy 7.2 percent year-on-year, with the ValuStrat Price Index now sitting at 125.6 points. Villas led the charge with a 9.7 percent annual increase, while apartment prices grew by 4.5 percent over the same period. Villas on Saadiyat Island saw the biggest jump, with prices up by a whopping 21.2 percent year-on-year. Al Raha and Mohammed Bin Zayed City also saw noticeable growth. As for apartments, Al Reef topped the list with a 7.5 percent annual boost, followed by Saadiyat Island and Al Muneera. The average home in Abu Dhabi is now valued at Dhs10,226 per square metre, with apartments averaging Dhs10,979 and villas at Dhs8,407. And it's not just prices that are climbing – rents are surging too. Apartment rental rates rose by 11.6 percent annually, while villa rents grew by 6.3 percent. A typical studio now goes for Dhs63,000 a year, with a one-bedroom hitting Dhs89,000 and a two-bedroom costing Dhs125,000. Larger homes are significantly pricier, with villa rents averaging Dhs245,000 annually. Despite the appetite for homes, the number of new units coming online remains slim. Only 90 apartments and 189 villas were completed in Q1, representing just two percent of the 2025 pipeline. Still, major developers aren't staying quiet. Aldar launched Mamsha Gardens on Saadiyat Island, IMKAN announced Naseem Al Jurf in Ghantoot Taraf teamed up with Marriott International to deliver W Residences on Al Maryah Island. Sales volumes told a different story. Overall transactions fell sharply – down almost 43 percent quarter-on-quarter – with off-plan sales plunging by 79 percent year-on-year. Yet the average home price is on the rise. Ready property prices jumped by nearly 6 percent, with the average ready home now fetching Dhs1,146 per square foot. The average transaction size increased to Dhs2.6 million. In the commercial sector, Abu Dhabi's office market is thriving. Asking rents climbed more than 30 percent over the year, driven by strong demand and high occupancy in central business districts. Retail is holding its own too, with Yas Mall reporting 97 percent occupancy, an 18 percent jump in footfall a 10 percent rise in tenant sales. The hospitality industry continues to shine, with average room rates hitting Dhs683 – a rise of 37 percent year-on-year – and occupancy reaching nearly 87 percent in early 2025. With 5.2 million guests in 2024, Abu Dhabi is firmly on the global tourism radar hotel supply is expected to exceed 50,000 keys by 2030. New entries to watch include the UAE's first Mondrian Hotel in Downtown Abu Dhabi and a new Waldorf Astoria at the former Anantara Eastern Mangroves site. So whether you're buying, renting, investing or just keeping an eye on trends, the message is loud and clear – Abu Dhabi's property market is booming it's not slowing down anytime soon. More going on in Abu Dhabi UAE residents can now save big time on flights thanks to a new Skyscanner feature No complaints here You can now get a robotaxi from Zayed International Airport Trips to the airport just got an upgrade Abu Dhabi's best restaurants: Everywhere you should eat at least once Your dinner inspo is sorted 20 incredibly fun ways to explore Abu Dhabi after dark The city is at its most fascinating once the sun goes down
Arabian Business
23-05-2025
- Business
- Arabian Business
Abu Dhabi property prices rise 7.2% annually in Q1 2025 despite sales volume drop: Report
Abu Dhabi's property market delivered its strongest capital gains in three years during the first quarter of 2025, even as sales volumes declined due to limited supply, according to the latest ValuStrat report. The ValuStrat Price Index (VPI) for residential properties rose 2.1 per cent quarterly and 7.2 per cent annually to reach 125.6 points, based on a Q1 2021 baseline of 100. Villa prices outperformed apartments, climbing 2.7 per cent quarterly and 9.7 per cent annually to 134.7 points, while apartment prices increased 1.5 per cent quarterly and 4.5 per cent annually to 116.9 points. 'Abu Dhabi records strongest capital gains in three years, whilst sales volumes slow due to constrained supply,' said Haider Tuaima, Managing Director at ValuStrat. The weighted average home value in Abu Dhabi stood at AED 10,226 per square metre (AED 950 per square foot), with apartments averaging AED 10,979 per square metre and villas at AED 8,407 per square metre. Saadiyat Island led annual capital gains for villas, recording a 21.2 per cent increase, followed by Al Raha at 8.2 per cent and Mohammed Bin Zayed City at 4.7 per cent. Among apartments, Al Reef saw the highest annual gains at 7.5 per cent, followed by Saadiyat Island at 6.2 per cent and Al Muneera Island at 5.7 per cent. Rental values rise sharply Rental values also increased, with the residential rental VPI rising 2.2 per cent quarterly and 9 per cent annually to 121 points. Apartment rents outpaced villas, growing 3.4 per cent quarterly and 11.6 per cent annually, while villa rents rose 6.3 per cent annually but remained flat quarterly. Average annual apartment asking rents stood at AED 114,000, with studios at AED 63,000, one-bedroom units at AED 89,000, two-bedroom apartments at AED 125,000, and three-bedroom units at AED 180,000. Villa rents averaged AED 245,000 annually, with three-bedroom properties at AED 180,000, four-bedroom homes at AED 244,000, and five-bedroom villas at AED 312,000. Gross yields averaged 7.8 per cent, with apartments delivering 8.3 per cent and villas 6.7 per cent. The estimated average residential occupancy rate reached 88.1 per cent. Abu Dhabi's residential market update Abu Dhabi completed just 90 apartments and 189 villas during the first quarter, representing 2 per cent of the expected 2025 residential pipeline of 13,941 units. . Bloom Holding launched Carmona in Zayed City, while 18 and 19 in Masdar City with 483 units. Taraf, collaborating with Marriott International, launched W Residences Abu Dhabi on Al Maryah Island, a 37-storey development. Abu Dhabi off-plan sales plummet 79% annually Sales activity presented contrasting trends. Total sales volume reached 1,301 transactions, down 42.9 per cent quarterly. The average sales ticket size increased 8.8 per cent quarterly to AED 2.88 million. Off-plan sales, representing 28.5 per cent of overall sales, fell 57.7 per cent quarterly and 79.2 per cent annually to 371 transactions, attributed to fewer project launches. However, the average off-plan price stood at AED 1,585 per square foot, decreasing 8.8 per cent quarterly but growing 8.7 per cent annually. The average off-plan ticket size reached AED 3.56 million, up 19.2 per cent annually. Ready property transactions totalled 930 units, down 33.6 per cent quarterly but up 13.6 per cent annually. Average ready home prices reached AED 1,146 per square foot, increasing 5.8 per cent annually and 7.9 per cent quarterly. The average ready home ticket size hit AED 2.6 million, up 28.9 per cent quarterly and 23.8 per cent annually. Mortgage transactions dominated the market with 2,846 deals worth AED 9 billion, compared to 1,375 cash transactions valued at AED 5 billion. Abu Dhabi office rents jump 31.8% annually 'The office market showed strong performance, with rising prices and rents amid high occupancy levels, particularly in central business districts. Retail remained resilient, supported by robust foot traffic and tenant sales. Meanwhile, the hospitality sector saw exceptional results, with occupancy and revenue metrics showing significant YoY growth, backed by strong tourism activity,' Tuaima added. The office market showed strong performance, with asking rents growing 8 per cent quarterly and 31.8 per cent annually to AED 811 per square metre annually. Median asking prices increased 6 per cent to AED 2.25 million. Average occupancy in central business districts reached 90.5 per cent. Office stock totalled 3.9 million square metres of gross leasable area. Aldar Properties expects to complete the HB Office Tower on Yas Island by year-end, while Masdar City Square will add 50,000 square metres during the second quarter. Shopping centre stock stood at 1.95 million square metres of gross leasable area. The occupancy rate for Aldar's retail assets reached 90 per cent during 2024. Yas Mall recorded 97 per cent occupancy with a 10 per cent increase in tenant sales and 18 per cent rise in footfall. My City Centre Masdar achieved 81 per cent occupancy. The hospitality sector delivered exceptional results. Hotel occupancy reached 86.9 per cent during the first two months of 2025, up 1.2 per cent from the same period in 2024. The Average Room Rate stood at AED 683, up 37.1 per cent annually, while Revenue Per Available Room reached AED 594, increasing 38.7 per cent annually. Abu Dhabi welcomed 5.2 million guests in 2024, a 28.7 per cent increase. The emirate had 34,372 hotel keys as of February 2025, with supply expected to surpass 50,000 by 2030. Mondrian Hotels will debut its first UAE property in Downtown Abu Dhabi, while Hilton and Aldar will open Abu Dhabi's first Waldorf Astoria at the former Anantara Eastern Mangroves site. Industrial property asking prices rose 14.8 per cent annually and 1.5 per cent quarterly. Warehouse prices ranged from AED 152 to AED 430 per square foot, with modern cold storage facilities commanding premium rates. Annual rental rates increased 12.3 per cent at the lower end and 17.9 per cent at the higher end, ranging from AED 25 to AED 54 per square foot. AD Ports Group inaugurated the Al Faya Dry Port between Abu Dhabi and Dubai. Bisconni Middle East Manufacturing signed a 50-year lease with KEZAD Group for a 37,000 square metre facility, investing AED 110 million. AquaChemie opened a 25,804 square metre manufacturing facility in KEZAD. The UAE economy is projected to grow 5 per cent to 6 per cent in 2025, supported by technology, renewable energy, trade, financial services, and infrastructure sectors. Abu Dhabi's economy grew 3.8 per cent in 2024, driven by the non-oil sector, with manufacturing contributing 9.5 per cent to GDP and construction recording 11.3 per cent. The Abu Dhabi Consumer Price Index for February 2025 stood at 106.4 points, stable annually. Housing and utilities increased 2 per cent annually to 101.9 points, the highest in two years. The US Federal Reserve maintained interest rates at 4.25 per cent to 4.5 per cent as of March 2025. Abu Dhabi's Murban crude oil price stood at AED 277.1 ($75.5) per barrel as of March 2025. The UAE's foreign trade reached AED 3 trillion for the first time by the end of 2024, growing 14.6 per cent.
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Dubai apartments rapidly reaching 11-year price peaks
More apartment communities in Dubai are rapidly approaching or surpassing their 11-year price peaks, a report showed on Monday. At the same time, villa values have surged to stand 63 per cent above their 2014 highs. The ValuStrat Price Index reached 214.1 points in April, marking a 1.6 per cent monthly increase and a 25.3 per cent rise year on year. Villa values climbed to 280.5 points, while apartments reached 170.9 points, all benchmarked to a base of 100 points in January 2021. Villa capital values grew 2 per cent monthly, with an annual increase of 29.8 per cent. The strongest annual performers included villas in Jumeirah Islands (41.7 per cent), Palm Jumeirah (41.3 per cent), Emirates Hills (29.6 per cent), and The Meadows (28.9 per cent). Meanwhile, the lowest gains were recorded in Mudon (8.9 per cent), which has remained relatively stable for the eighth consecutive month. Dubai's freehold villas are, on average, valued 63 per cent above the previous market peak in 2014 and 170 per cent higher than post-pandemic levels. Apartment prices rose by 1.1 per cent monthly, recording an annual growth of 20.9 per cent. The highest yearly capital gains were seen in The Greens (26.5 per cent), Dubailand Residence Complex (24.8 per cent), Palm Jumeirah (24.5 per cent), Town Square (23.7 per cent), and The Views (23.6 per cent). In contrast, the lowest capital value increases were recorded in International City (13.5 per cent) and the Burj Khalifa (16.9 per cent). 'Apartment valuations are, on average, 69.2 per cent above post-pandemic levels, but 7 per cent below the previous market peak during 2014, however, The Views is the latest community to cross previous price highs after Palm Jumeirah, The Greens, and Jumeirah Beach Residence,' a ValuStrat report said. Off-plan vs ready homes Oqood registrations for off-plan homes rose by 22.6 per cent monthly and 61.5 per cent annually in April, accounting for 71.6 per cent of total residential sales. Meanwhile, ready secondary-home transactions also rebounded, increasing 12 per cent from the previous month and 49.6 per cent annually, following a slower March impacted by the holy month of Ramadan. Prime home sales There were 31 transactions for ready properties priced over Dh30 million, situated in Dubai Hills Estate, Palm Jumeirah, Jumeirah Bay Island, Downtown Dubai, Al Barari, Dubai South, Business Bay, District One, and Jumeirah Golf Estates. April 2025 saw Emaar (13.4 per cent), Damac (10.8 per cent), Binghatti (7 per cent), Nakheel (4.3 per cent), Azizi (3.5 per cent) and Danube (2.6 per cent) lead the developer sales charts overall. Top locations Top off-plan locations transacted included projects in Jumeirah Village Circle (9.5 per cent), Damac Island City (8.1 per cent), Dubai Production City (6.1 per cent), Business Bay (5.2 per cent), and Dubailand Residence Complex (4.6 per cent). Dubai Marina broke its individual record with the highest number of off-plan homes traded in one month. Meanwhile, most ready homes sold were in Jumeirah Village Circle (8.5 per cent), Business Bay (8 per cent), Dubai Marina (5 per cent), Meydan One (4.3 per cent), and Downtown Dubai (3.6 per cent). Business Bay broke its individual record with the highest number of ready homes traded in one month
Al Etihad
14-05-2025
- Business
- Al Etihad
Abu Dhabi real estate market builds growth across the board
15 May 2025 00:21 MAYS IBRAHIM (ABU DHABI)Abu Dhabi's real estate market recorded steady and broad-based growth in the first quarter of 2025, with gains across residential, office, retail and hospitality segments, according to ValuStrat's latest market ValuStrat Price Index (VPI) for the residential sector rose 2.1% quarter-on-quarter (QoQ) and 7.2% year-on-year (YoY) to reach 125.6 points, based on a baseline of 100 in Q1 outperformed apartments, appreciating 2.7% QoQ and 9.7% YoY to 134.7 points. Apartment prices rose 1.5% QoQ and 4.5% YoY to 116.9 average home value in Abu Dhabi reached Dh10,226 per square metre, with apartments averaging Dh10,979 per m2 and villas Dh8,407 per villa submarkets, Saadiyat Island led annual capital gains for villas, up 21.2%, followed by Al Raha 8.2% and Mohammed Bin Zayed City 4.7%.Rental values mirrored sales performance, with the residential rental VPI rising 2.2% QoQ and 9% YoY to 121 rents grew 3.4% QoQ and 11.6% YoY, while villa rents remained flat quarterly but were up 6.3% annually. The average gross rental yield stood at 7.8%, with apartments yielding 8.3% and villas 6.7%.The average annual apartment asking rents in Abu Dhabi City hit Dh114,000. Studio apartments averaged Dh63,000; one-beds Dh89,000; two-beds Dh125,000; and three-beds Dh180, Reef (3.4%), Al Bandar (2.8%), and Al Muneera (2.5%) saw the highest quarterly rental increases. Market Activity and SupplyThe first quarter saw the handover of 90 apartments and 189 villas, representing 2% of the expected 2025 residential pipeline of 13,941 units. Major projects progressed across Saadiyat Island, Zayed City, Ghantoot and Masdar City, reflecting developer off-plan sales slowed due to fewer new launches, average prices and transaction values rose, according to the property transaction volumes dipped 33.6% QoQ but climbed 13.6% YoY. The average price for ready homes reached Dh12,335 per m2, up 5.8% YoY, while the average transaction size surged 28.9% QoQ to Dh 2.6 transactions dominated activity, accounting for 2,846 deals totalling Dh9 billion, compared to 1,375 cash transactions worth Dh5 billion. Strong Gains Across Property SegmentsAbu Dhabi's office market remained resilient amid high occupancy and rental growth. Asking prices for office units climbed 6% QoQ to Dh2.25 million, while rents in core commercial districts jumped 8% QoQ and 31.8% YoY. Occupancy in these areas reached 90.5%. The city's total office supply stood at 3.9 million m2 of Gross Leasable Area (GLA).Key additions this year include the HB Office Tower on Yas Island and Masdar City Square, the latter set to contribute 50,000 m2 of new space in Q2 continued to benefit from strong footfall and tenant sales. In Q1 2025, shopping centre stock totalled 1.95 million m2 of GLA in UAE's e-commerce market is forecast to surpass Dh48.5 billion by 2028, with online sales expected to make up 15.3% of the total retail hospitality sector posted impressive growth, buoyed by tourism, the report occupancy in Abu Dhabi averaged 86.9% in the first two months of 2025, a 1.2% increase YoY. The city welcomed 800,000 hotel guests by February, with 5.2 million visitors in total during 2024 – a 28.7% annual average room rate rose 37.1% to Dh683, and revenue per available room (RevPAR) jumped 38.7% to Department of Culture and Tourism expects total hotel supply to exceed 50,000 keys by 2030, up from 34,372 in February 2025. Upcoming additions include the Mondrian Hotel in Downtown Abu Dhabi and the Waldorf Astoria, set to open at the former Anantara Eastern Mangroves site, offering 167 rooms with views of Mangrove National Park.
Arabian Post
08-05-2025
- Business
- Arabian Post
Dubai Property Surge Raises Questions About Market Stability
Dubai's real estate market is experiencing a significant upswing, marked by soaring property prices and heightened investor interest. However, industry experts are expressing caution, suggesting that the market may be approaching a saturation point. Residential sales reached AED 120 billion in the third quarter of 2024, with luxury property transactions increasing by 62%. High-net-worth individuals are driving demand in prime locations such as Palm Jumeirah and Downtown Dubai. Despite this growth, analysts from ValuStrat predict that prices for high-end villas may stabilize in the latter half of 2025, indicating a potential cooling of the market. The supply of new housing is not keeping pace with demand. Only 19,700 new villas are expected to be completed by the end of 2025, far below the growing demand for larger, family-friendly homes. This shortage has led to a 26% increase in villa prices in 2024, with further increases anticipated. Delays in construction projects, averaging 30%, suggest that actual completions may fall short of targets, exacerbating the housing shortfall. Government initiatives, such as the Golden Visa program and the Dubai 2040 Urban Master Plan, have attracted over 100,000 individuals since its launch, boosting investor confidence. However, the rapid speed of new development, particularly around off-plan projects, raises concerns about the risk of oversupply in certain segments of the market. If demand does not keep pace, particularly for mid- to upper-tier residential units, a price correction could occur in specific micromarkets. Jeremy, a seasoned real estate investor, advises caution. He suggests that prospective buyers wait until the summer for better opportunities, as market corrections may present more favorable conditions. Jeremy emphasizes the importance of seeking impartial advice, contrasting it with the commission-driven motivations of most brokers. His real estate company prioritizes client interests through unbiased analysis, leading to exceptional returns for clients. See also du reports significant profit surge for Q1 of 2025 The Dubai real estate market offers high rental yields, ranging from 5% to 8% annually in key areas like Dubai Marina and Downtown Dubai. However, rising living costs and inflation are impacting property affordability, particularly for middle-income buyers. Developers may need to explore more inclusive housing models to address this issue. Sustainability is becoming a key focus in Dubai's real estate sector. Developers are integrating eco-friendly features such as solar panels and energy-efficient systems into residential projects, aligning with Dubai's commitment to achieving net-zero emissions by 2050. By 2025, 35% of new office spaces in Dubai are expected to be LEED-certified, up from 25% in 2023.
