Abu Dhabi sees £2.5bn of property deals in Q1

The volume of real estate transactions in the UAE capital reached AED11.3 billion (£2.5 billion) across 3,304 deals in the first quarter of 2022, official figures reveal.

Yas Island, the Abu Dhabi neighbourhood that houses the Formula 1 racing track and several other leisure and entertainment destinations alongside upmarket residential complexes, recorded the largest amount of deals by value in Q1 2022, at AED1.2bn, according to the latest real estate trading index published by the emirate’s Department of Municipalities and Transport.

Al Saadiyat Island followed with AED673m of transactions, then Al Reem Island with AED598m, Khalifa City with AED173m, Al Raha Beach with AED168m, and Al Shamkha with AED150m.

The quarterly report includes buying, selling and mortgaging transactions of all types of land, buildings and real estate, the department said in a statement carried on Abu Dhabi’s state media portal.

The AED11.3bn total is slightly below that recorded for the same quarter in 2021, when AED11.5bn of deals were struck in the emirate across 3,847 deals, according to a government report at the time.

Of the latest figure, property purchase and sale transactions accounted for AED4.35bn – 1,722 deals – and mortgage transactions for AED6.9bn, or 1,582 deals, the statement said.

“With steady and sustained growth in Abu Dhabi’s real estate sector, the emirate has maintained its position as one of the world’s most sought-after markets and destinations for real estate investment,” said Dr Adeeb Al-Afifi, executive director of the real estate sector at the Department of Municipalities and Transport.

“With excellent infrastructure, a diverse range of options, and world-class services, Abu Dhabi’s real estate industry strengthens its position as one of the best places in the world to live, work, and visit.”

A total of AED71.5bn of property transactions were recorded during the full year 2021, across 14,958 deals, and Yas Island was again the best performing area with AED4.1bn of deals. Reem Islands came second with AED3.2 bn, followed by Saadiyat Island with AED2.5 bn, the UAE’s state news agency Wam reported in February.

Abu Dhabi’s property market is expected to continue gathering momentum this year as demand grows on the back of the UAE’s newly relaxed immigration rules intended to attract more expats to the country, and healthy economic growth after the pandemic-enforced slowdown, experts say.