Abu Dhabi realty market looks promising as demand escalates

Inayat-ur-Rahman, Business Editor

Abu Dhabi’s real estate market has started on a strong note as the first quarter recorded a little over 3,300 transactions valuing more than Dhs11.3 billion. The second quarter is expected to end on a similar note, paving the way for a strong 2022, according to the Zoom Property Insights.

The year 2021 saw the delivery of 6,000 residential units in Abu Dhabi. However, the number will surpass this year with the expected delivery of around 7,000 units in 2022. With this, the property prices will also increase in the second half but at a steady rate. The Zoom Property Insights note that the demand for luxury properties in island communities, such as Yas Island and Saadiyat Island will continue to rise in H2.

Ata Shobeiry, CEO at Zoom Property, believes the Abu Dhabi property market will pack in a strong performance in the second half of 2022 due to new mega-developments, Etihad rail expansion, and rising oil prices.

He said, “with the launch of many new developments along with the expansion of Etihad Rail, the emirate aims to capitalise on this upward trend and produce favourable results in the second half of the year. In addition, the higher oil prices will enable the government to diversify its resources. This will benefit many sectors across the emirate, including the real estate market.”

According to prevalent trends, Masdar City, Al Reef, Baniyas, and Al Ghadeer remain the preferred areas for affordable apartments in Abu Dhabi. With over Dhs 1,550 per square foot, Saadiyat Island topped the communities for luxury apartments.

It was followed by Yas Island and Al Raha Beach with Dhs1,270 and Dhs 1,220, respectively. According to the Zoom Property Insights, these communities will continue their upward trajectory during the second half of the year as well.

For villas, Hydra Village, Al Reef, Khalifa City A, Saadiyat Island, Al Raha Gardens, and Yas Island are expected to remain the preferred choice among buyers during Q2, 2022.

With a strong recovery over the preceding 12 to 18 months, the Abu Dhabi property market is expected to witness steady growth over 2022 and beyond.

“The real estate market in Abu Dhabi has a promising outlook as international investors in general and European buyers, in particular, have shown interest in the emirate’s residential, commercial and industrial projects, generating huge demand in the sector during the first five months of 2022. This trend is expected to continue in the second half and we may see more promising sales numbers by year-end,” Shobeiry concluded.

Zoom Property is an emerging property portal in the UAE with a primary focus on Dubai, Abu Dhabi and Sharjah markets. The portal also features international properties in KSA, the UK and other regions on the platform to facilitate buyers and renters. It is also popular among developers, real estate brokerages and property sellers.

Meanwhile, the Abu Dhabi Securities Exchange (ADX)’s market capitalisation opened above Dhs2 trillion ($545 billion) on Monday for the first time in its history, marking a landmark milestone that has made the region’s youngest exchange, the second largest in the Middle East in just two decades.

The 25 per cent year-to-date spike in the exchange’s market capitalisation was bolstered by a spate of successful IPOs and listings over the past year, including Abu Dhabi Ports, Fertiglobe, ADNOC Drilling, Alpha Dhabi and Multiply Group. Most recently, petrochemicals company Borouge raised US$2 billion in an IPO and listed last week, while ADQ and Chimera Capital launched the first ADX-listed SPAC.

The significant milestone has been supported by ‘ADX One,’ the exchange’s strategy to enhance liquidity through listing incentives, trading fees reductions and rolling out innovative products and services. The exchange’s benchmark index, the FTSE ADX General Index, has gained 16 percent this year, making it one of the best performing stock markets worldwide.

Since the launch of ‘ADX One’ at the beginning of 2021, the exchange has developed several new initiatives to boost market liquidity, including the introduction of a derivatives market in the fourth quarter of 2021. This was followed by an agreement with FTSE Russell to develop co-branded indices, including a tradable version of the FTSE FADX 15 Index that will be launched in 2022. The exchange has also established a framework for listing Special Purpose Acquisition Company (SPAC) on ADX, approved by the Securities and Commodities Authority (SCA) in January.

The advances in the exchange’s market capitalisation come on the heels of a bumper year in 2021, when its market capitalisation more than doubled to AED1.6 trillion from Dhs750 billion. That followed several new listings on the Growth Market, including Palm Sports, Zee Stores and Easy Lease, three subsidiaries of IHC, and an Exchange Traded Fund (ETF). Previously known as the Second Market, the Growth Market was rebranded in April to accelerate Abu Dhabi’s fast-developing ecosystem for emerging companies.