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REAL ESTATE
GRADUAL RECOVERY
ASTECO REPORT REVEALS GRADUAL RECOVERY OF UAE REAL ESTATE SECTOR IN Q2 2021
T
he resurgence of the UAE’s real estate market continued in Q2 2021, with some segments seeing double-digit growth in sales prices. The Q2 2021 UAE Real Estate Report by property management experts Asteco revealed that villa rental and sales rates in Abu Dhabi and Dubai continued to surge, with sales prices in certain segments expanding by almost a quarter in the period under review.
Abu Dhabi Residential and Office Real Estate Market The report said that developers delivered approximately 2,070 apartments and villas in Q2 2021 in Abu Dhabi, particularly within Yas Island, and several buildings in Al Raha Beach. The report notes that more than 9,350 residential units are set for handover before the end of the year; however, some projects are likely to experience delays and spill over into 2022.
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Apartment rental rates in the capital softened marginally (by 1%) over Q1 2021. Annual declines, however, were more pronounced and averaged 8%. The report noted that mid and high-end properties were the most affected, with some units registering declines of between 10% and 15%. The report indicated that villa rental rates recorded an average increase of 1% in Q2 2021, predominantly driven by the rise in interest for well-developed villa communities located on Yas Island, Saadiyat Island, and Al Raha Beach. Tenant movement was dominated by residents looking to upgrade/upsize, with most shifting to villas and townhouses. The increased availability of units within the mid to high-end sector facilitated this move, the report said. Rental rates for office space in the capital remained constant in Q2 2021 WWW.CBNME.COM
