Text size:

  • Small
  • Normal
  • Large
Al Reef Villas registered price growth of 15.1 per cent in the six months to June. Andrew Henderson / The National
Al Reef Villas registered price growth of 15.1 per cent in the six months to June. Andrew Henderson / The National

Abu Dhabi decree helps to lift housing market

The average cost of buying an apartment in Abu Dhabi's investment areas has risen 13.2 per cent since the start of the year.

The average cost of buying an apartment in Abu Dhabi's investment areas has risen 13.2 per cent since the start of the year as government employee relocations and an influx of teachers and nurses help the hard-hit property market to recover from the global financial downturn.

According to the property broker Cluttons, an influx of tenants caused by the decree requiring all Abu Dhabi Government employees to live in the emirate as well as an increase in the number of teachers and nurses flocking to the UAE is prompting investors back to the market and pushing up prices.

However, prices per square foot remain at roughly half their peak 2008-2009 levels.

A Cluttons index that measures hundreds of house sales across the emirate showed villa prices in the capital up by 22 per cent during the first half of the year.

Al Reef Villas registered price growth of 15.1 per cent in the six months to June, positioning it as the strongest performing villa submarket.

Golf Gardens and Hydra Village were the weakest performing villa submarkets, with no capital value increases recorded between January and June.

The Cluttons index findings come in marked contrast to the first half of the previous year when average apartment prices dropped 4.4 per cent and villa prices remained flat.

"This [government housing decree] requirement has certainly contributed to the rising tenant demand that we have been recording," said Steven Morgan, the head of Cluttons Middle East.

"We expect that the ruling, which comes into force today [September 1] for 20,000 public sector workers and their families, will continue to place downward pressure on vacancy levels."

The news confirms data released by Jones Lang LaSalle in July that found that average property prices in investment areas rose 5 per cent during the three months to June following an 8 per cent increase during the first quarter of 2013.

"It looks like Abu Dhabi house prices have turned a corner and prices are now starting to increase," said Craig Plumb, the head of research at Jones Lang LaSalle's Dubai office.

"The reasons for this include the housing decree as well as the influence of the Dubai market. However, prices remain at the sort of levels seen in 2010 and we do not expect them to reach anywhere near boom levels again for the next few years."

 

lbarnard@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Miele coffee maker making Cappuccino at Miele Gallery in Sama Tower in Dubai. The cost of this coffee maker is around Dh 17,000. Pawan Singh / The National

Space-age coffee comes at a price from Miele

Miele have taken the coffee machine to a new level with its Dh17,000 offering that is built into your kitchen.

 The bridge of Seajacks Hydra, as the wind farm installation vessel undergoes finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014. Jeffrey E Biteng / The National

In pictures: Building the Seajacks Hydra

The Seajacks Hydra, a wind farm installation vessel, is undergoing finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The rush of new supply of hotel rooms pushed Dubai occupancy rates down to 87 per cent. Sarah Dea / The National

Dubai hotel room rates rise 10 per cent

The rush of new supply pushed occupancy rates down to 87 per cent, a dip of 2.6 per cent from the previous year. Winter months are the strongest for Dubai hotels, with occupancy and prices falling to half their peaks by July.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National