Abu Dhabi real estate transactions reach Dhs11.5 billion in 1st quarter

The emirate of Abu Dhabi has recorded Dhs11.5 billion real estate transactions in the first quarter of  2021, The Department of Municipalities and Transport announced on Monday. The Q1 recorded value included approximately 3,847 lands, buildings, and unit’s real estate deals.

According to the first report this year, the value of real estate transactions amounted to around Dhs5 billion, comprising 1,755 transactions, while the value of mortgages exceeded Dhs 6.5 billion generated from 2,092 transactions.

Al Reem Island came in the first place in 2021 first-quarter report with the highest value in terms of total sales – at about (Dhs1.6 billion) – followed by Abu Dhabi Island with (Dhs907million). Yas Island came in third place in terms of total sales (Dhs649 million) followed by Saadiyat Island (Dhs446 million), Khalifa City (Dhs225 million), Al Raha Beach (Dhs196 million), while sales were distributed in various other regions in Emirate of Abu Dhabi.

Real estate sales during the first 2021 quarter were distributed across land, buildings and units. Lands acquired 66% of the total sales during the first quarter with a value of Dhs 3.3 billion made through 777 transactions, while the share of real estate units in the total sales value during the same period totalled 34% with sales and were valued at Dhs1.7 billion, covering 978 transactions.

While lands comprised the vast majority of mortgages with a value of Dhs6.2 billion (96% of the total value), the share of real estate units in the total value of mortgages accounted for 4%, equating to around Dhs242 million and 156 transactions. Mortgages exceeded Dhs6.5 billion, reflecting banks confidence in Abu Dhabi’s real estate market with a positive outlook.

Dr Adeeb Al Afeefi, Executive Director of the Real Estate Sector in the Department of Municipalities and Transport, said: “We always make sure to publish these periodic reports, as we understand that consumers are led by market transparency, dynamism and proactivity when it comes to developing sustainable markets. We are fully confident that our long-term approach will contribute to Abu Dhabi’s success and strategy, which has set an outstanding global example on how to overcome the economic, health and social challenges imposed by last year’s pandemic.

He added: “Working closely with our stakeholders and partners across public and private sectors, enabled us to plan and execute sustainable initiatives and procedures in our market. Led by our leadership vision and support, these developments will ensure creating an attractive investment environment aligned with Abu Dhabi Plan and the Abu Dhabi Government Accelerator’s programme ‘Ghadan 21’ through more stimulus packages and opportunities.”

Department of Municipalities and Transport The Department of Municipalities and Transportation (DMT) was established by Law No. 30 of 2019 and is the entity responsible for managing the urban planning and transport sectors, and three regional municipalities.

As the entity responsible for supporting the growth and urban development of the Abu Dhabi Emirate, the DMT guides, regulates and monitors urban development activities. The expert authority improves municipal work to provide comprehensive services and creates higher living standards for residents through the supervision and management of the municipalities.

The DMT ensures the highest standards of safety, security, sustainability and technological developments of land, air and maritime transport networks of the Emirate, in line with the highest international standards and UAE legislation.

Separately, Dubai Land Department announced recently that a total of 6,590 real estate transactions in Dubai were recorded in March 2021, valued at about Dhs22.9 billion. According to the real estate bulletin the sector posted a growth in number by 43 per cent and a growth in value by 40 per cent compared to March 2020. It also noted that March 2021 recorded the second highest number of real estate transactions since February 2017. The bulletin showed that real estate transactions in Q1 2021 achieved a significant growth of 27 per cent and 47 per cent compared to Q1 2020 and Q1 2019, respectively. The bulletin highlighted continued attractiveness of the real estate sector to new investors, as 5,683 new investors entered the market in Q1 2021, representing 64 per cent of the total number of investors during the same period.