Abu Dhabi’s real estate market is certainly looking up and how! Pro-active measures taken by the UAE Government have certainly spurred growth in real estate for the Emirate. Reports have now confirmed that Abu Dhabi has witnessed a handsome transaction count of 19,000 units for 2019. These transactions were valued at approximately $15.8 billion or AED58 billion as per the Department of Municipalities and Transport or DMT.
The transactions cover mortgage and sales of buildings, lands and other real estate units. Reports issued by the DMT clearly show that the value of mortgages last year has touched AED37.4 billion across 8,663 real estate transactions. This certainly augurs well for the property market in the Emirate according to experts.
Key market trends worth knowing
Al Reem Island takes pole position in the list for real estate transactions with values of AED6.52 billion. It is closely followed by Yas Island which has transactions valued at AED3.425 billion and Al Reef with transaction values of AED2.293 billion. DMT officials have highlighted the Abu Dhabi real estate sector’s positive performance and growth in recent times while talking about how this can be attributed to the increasing participation of investors who are seeking a stable, safe and more encouraging environment for investments here.
Ghadan 21, the major initiative taken by the Government, has also paid off in terms of encouraging foreign investors to attain ownership of freehold property in Abu Dhabi. There have been other amendments to several legislations and regulations pertaining to long-term residence visas and also residence visas for buyers of real estate. Government measures are expected to stimulate the real estate market in Abu Dhabi this year as well, according to industry experts. They feel that changes to freehold regulations have enabled freehold property ownership for expatriates in more than 15 zones that have been designated for investments. These changes will impact the residential market positively according to reports. More than 28,000 residential units are expected to enter Abu Dhabi between the years 2020 and 2023 and will add to the existing inventory of 258,000 units.
Some other aspects that you should note
DMT has also clarified that there were 8,663 transactions where mortgage values have touched Dh37.4 billion and 10,155 transactions where values have touched Dh20.6 billion. Lands and buildings accounted for 50% of overall sales volumes or Dh10.3 billion across 3,424 transactions. Mainstream real estate units accounted for the remaining 50% of property transactions, notching up sales of Dh10.3 billion across 6,731 transactions. Mortgage values were Dh36.2 billion for lands and buildings, accounting for a whopping 96.8% of the total values. The real estate units under mortgage were only 3.2% or Dh1.2 billion in terms of value across 933 transactions.
Experts have also stated that the positive performance of the real estate market in 2019 can be attributed to several other factors including the suitable payment plans provided by real estate developers and several facilities along with lower rates of interest offered by lenders including banks and financial institutions. The UAE Government has also played a positive role in backing economic growth in the Emirate while stimulating the overall environment for attracting higher investments. Along with areas mentioned above, other popular real estate hotspots included Al Shamkha which had Dh1.078 billion in transactions and also Khalifa City with Dh687 million in transactions. Al-Faqa also witnessed property transactions worth Dh303 million.