ABU DHABI // Property prices for newer developments in the capital have stabilised, but they have increased in some city-centre neighbourhoods by almost a quarter, data shows.
There was no rent rise for one-bedroom properties in Mohammed bin Zayed City from the end of June to the end of September, figures from online classifieds website dubizzle.com show.
The same was true for Reem Island, Tamouh Square and Gate District.
But rental properties in Al Muroor and Al Khalidiya had increases of 23 and 21 per cent in that period.
Matthew Green, head of research and consultancy for property company CBRE, said the trends reflected market growth of about 12 per cent at the start of the year.
Mr Green said much of that was driven by the removal of the 5 per cent cap on annual rent rises at the end of last year.
“There seems to be a return of appetite in investment in properties in Abu Dhabi,” he said.
New properties on the market and improvement in the quality of housing is encouraging people to look at other options, Mr Green said.
“I think that in itself is driving a lot of movement in the capital,” he said.
Two-bedroom units in Al Zahiyah had a 6 per cent price increase, from about Dh85,000 to Dh90,000, while three-bedroom apartments did not change, with a median price of Dh110,000.
Three-bedroom properties for sale in Al Raha Beach, Al Reef and Al Reem Island Tamouh Square showed increases of between 5 and 6 per cent, the report said.
Two-bedroom units for sale in Al Reem Island Gate District and three-bedroom units in Al Reef showed no price fluctuation.
Dubizzle also reported the most popular searches for rentals and sales.
For rentals, the site had more than 500,000 monthly searches for studio apartments in Khalifa City A.
That was followed by 200,000 searches each for one-bedroom apartments in Mohammed bin Zayed City and three-bedroom villas in Al Reef.
Reem Island Gate District accrued the most monthly searches for sales, with more than 390,000 hits for one-bedroom apartments.
There were more than 310,000 monthly searches for two-bedroom apartments in Al Reef, and more than 66,000 for two and three-bedroom villas in the same area.
“The report serves in driving market transparency both for industry professionals and newcomers to the region looking to find a place to live and who are not sure which areas will fit their budget,” said Ann Boothello, product marketing manager for property at dubizzle.
Abu Dhabi has an estimated population of 1.42 million, the website said.
The rent cap had been introduced in 2006 and was set at 5 per cent in 2010, before being removed last November.
A report from CBRE released last month said that average rents in Abu Dhabi had risen 12 per cent between January and June.
The same report said sales prices were increasing.
lcarroll@thenational.ae
