Abu Dhabi house prices jump 2.1% in second quarter – News
All of the properties monitored by the VPI experienced quarterly capital value growth ranging from 1.2% to 2.7%.
The ValuStrat Price Index (VPI) based on valuation of capital values in residential investment areas of Abu Dhabi rose 2.1% in the second quarter of 2021 to 65.8 points.
This is the first time that VPI has experienced three consecutive quarters of growth since 2016, with a total of 7.2% since the fourth quarter of 2020, according to the second quarter report from ValuStrat Abu Dhabi Real Estate.
“Each year, capital values were 3.9% higher after last year’s Covid-19 headwinds. The weighted average residential value this quarter was Dh 8,816 per m² (Dh819 per square foot), apartments were Dh 9,634 per m² (Dh895 per square foot) and villas at Dh 6,867 per m² (Dh 638 per square foot)).
All of the properties monitored by the VPI experienced quarterly capital value growth ranging from 1.2% to 2.7%. The locations with the highest earnings were apartments on Al Reem Island 2.0%, and Villas on Saadiyat Island 2.6% and Mohamed bin Zayed City 2.7%. The second quarter of VPI – Residential Rental Values saw a quarterly increase of 4.3% and an annual gain of 4.5% to 77.7 points, this is the first positive increase in rents in the city scale in five years. Abu Dhabi’s gross yields averaged 7.4%, for apartments at 7.6% and villas at 6.8%.
During the second quarter, 855 apartments were completed in five projects. This represents 7.3 percent of the total new construction units planned for this year. Notable completions included Y Tower Reem (274 units), Al Faridah Al Zeina Complex (234 units), and Olive Al Raha Beach (162 units). The remaining supply expected for this year is 9,871 apartments and 961 villas, according to the report.
Almost 7.0% of future transfers will be to Al Reem Island (3,407 units), Al Raha Beach (2,765 units) and Yas Island (2,572 units).
During the second quarter, approximately 1,233 off-plan properties were launched, including Aldhay Bloom Gardens (181 units), Noya Viva and Luma Yas Island (669 units), The Dunes Saadiyat Reserve (83 units) and Townhouses of the Jubail Islands (300 units).
The city-wide average residential asking price per square foot in the quarter saw a record increase of 5.2% quarter-on-quarter and 3.6% year-on-year. This is the first positive annual growth observed since 2017, according to the report.
The average asking price for ready-to-use apartments was 12,491 Dh per m² (1,160 Dh per square foot), up 3.5% quarter-on-quarter and was relatively stable year over year. last. For ready villas, the average asking price hit a record high and stood at Dh10,596 per m² (Dh984 per square foot), indicating that asking prices jumped 9.3% QoQ and 11, 7% YoY.
Overall, average residential asking rents increased 4.5% from the same period last year. On a quarterly basis, city-wide average asking rents have seen a record 4.9% increase since 2016.
Asking rents for apartments in Abu Dhabi City increased 3.0% year-on-year and 4.9% quarter-on-quarter.
Asking rents for city-wide villas increased 6.2% year-on-year and 3.6% quarter-on-quarter. Notable increases in average asking rents have been observed in Al Bandar, Saadiyat Island and MBZ City.
The average annual rents charged for the apartments were as follows: studios (50,000 Dh), 1 bed (74,000 Dh), 2 beds (118,000 Dh) and 3 beds (165,000 Dh).
For the villas, the annual rents for the 2 beds were (117,000 Dh), 3 beds (140,000 Dh) and 4 beds (214,000 Dh). – [email protected]