RIYADH: Abu Dhabi’s residential property market continued to post robust price growth through June, led by waterfront communities, while the office sector recorded its first annual decline in leasing activity in years, new data showed.
Apartment prices on Yas Island and Al Reem Island each rose about 18 percent year on year through June, according to Knight Frank’s latest Abu Dhabi Residential and Office Market Review.
Al Saadiyat Island retained its position as Abu Dhabi’s most expensive apartment market, with average transaction prices of around 43,100 UAE dirhams ($11,735) per sq. meter, up 21 percent from a year earlier.
The report comes as Gulf housing markets continue to see gains, with UAE home prices rising about 9 percent year on year in the first quarter and Saudi Arabia’s real estate price index increasing 1.3 percent in the second quarter, driven by a 2.6 percent rise in residential values. Qatar’s property price index climbed 8.7 percent year on year to a record 244.56 points in May, supported by strong transaction activity and mortgage lending.
Knight Frank’s Head of Research for Middle East and North Africa Faisal Durrani, said: “Despite the geopolitical challenges posed by the ongoing regional conflict, Abu Dhabi’s residential market continues to be supported by robust domestic demand, with prime waterfront communities such as Al Saadiyat and Yas Island leading the emirate’s price growth ... prices on average 10 percent lower than Dubai.”
