The real estate market in Abu Dhabi secured USD 3.13 billion in the first quarter of 2021. According to a report by the Department of Municipalities and Transport (DMT), this was spread across 3,847 land, building, and unit deals.
Here’s a look at the top winners in Abu Dhabi’s real estate market 2021.
Q1 2021: ABU DHABI'S REAL ESTATE MARKET IN NUMBERS
Of the USD 3.13 billion, real estate accounted for about USD 1.36 billion from 1,755 transactions.
Land deals made up 66% of sales in Abu Dhabi’s real estate market, reaching USD 90 million from 777 transactions. Real estate units contributed to the remaining 34%, with USD 46 million from 978 transactions.
Mortgages, worth over USD 1.77 billion from 2,092 transactions, accounted for the remainder of the USD 3.13 billion.
Here too, land deals emerged in majority, comprising 96% of total mortgage value at USD 1.69 billion. Real estate units contributed to the residual 4%, bringing in about USD 65 million from 156 transactions.
A strong performance in the mortgages sector reflected “banks’ confidence” and “positive outlooks” for Abu Dhabi’s real estate market, the report noted.
In line with last year’s trends for best-selling locations in Abu Dhabi, Al Reem Island clinched the top spot, with sales of about USD 440 million. Abu Dhabi Island was a close second with around USD 246 million.
They were followed by Yas Island with about USD 176 million in sales, Saadiyat Island with about USD 121 million, Khalifa City with about USD 61 million, and Al Raha Beach with about USD 53 million.
BIG PLANS IN THE PIPELINE
"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 Program 'Ghadan 21’ through more stimulus packages and opportunities,” Executive Director, Real Estate at the DMT, His Excellency Dr. Adeeb Al Afeefi said about the Q1 results.
The Abu Dhabi Plan, or Plan Abu Dhabi 2030, is a government framework to address key issues in the city’s real estate, such as land use and transportation. Ghadan 21 is an accelerator program aimed at bringing in more foreign investment into Abu Dhabi’s real estate market.
Other initiatives, such as a USD 8 billion capital projects framework, are also underway. At the same time, Abu Dhabi’s real estate market could face an oversupply of residential stock as it adjusts for the global economic shock of 2020.
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