In an exclusive interview, Haider Tuaima, Director and Head of Real Estate Research at consulting and advisory group ValuStrat, shares his perspective on growth and investment prospects in the capital's real estate market.
How do you see the Abu Dhabi market progressing in 2nd half of this year?
Judging from Abu Dhabi's sales transactions, the trend seems to project the second half of the year in favour of apartments instead of villas, particularly a strong growth in demand for off-plan homes.
Do you continue to see capital values increase quarterly for the rest of the year?
Abu Dhabi's residential capital values increased 4.9 per cent since last year. The first and second quarters of 2023 saw steady capital gains of 1.2 per cent each. We expect this trend to continue throughout the year.
WilI villas drive the market more as compared to apartments?
In Abu Dhabi, villa prices recovered better than apartments, but not in a significant way. It seems that the market is now leaning towards affordable communities, with apartments being the main drivers of this growth trend.
Do you continue to see rents increasing like they did in QI and Q2?
Abu Dhabi asking rents have seen an acceleration in growth, and our forecast suggests that this will continue during the coming six months. While rental rates have recovered from the pandemic times, average residential rents in Abu Dhabi are still 20.4 per cent lower than in 2016.
Do you think there will be increased demand for an affordable segment like you mentioned for Dubai?
Yes, a similar trend has been observed in Abu Dhabi.
Any indication of new supply to be added in Q3 and Q4? How will that affect the market?
We estimate 6,122 homes to be completed In Abu Dhabi by the end of 2023; we don't believe this number will negatively impact the market.
Any interesting trend you have observed during the 1st half based on the quarterly research report you release?
Since the pandemic, Abu Dhabi's real estate market has seen its recovery trending consistently and predictably since the pandemic. This stems from well-balanced market fundamentals, safeguarding developers, city planners, and investors alike from any market volatility going forward.
For a detailed perspective on the property market, visit: Abu Dhabi - Real Estate Review Q2 2023