Asteco Q1 2022 real estate report: UAE market robust and positive

Asteco Q1 2022 real estate report: UAE market robust and positive

Approximately 3,800 residential units were delivered in Q1 2022, spread across different areas of Abu Dhabi including Al Raha Beach, Al Reem Island, Yas Island and Saadiyat Island and several other residential areas. According to the report, numerous residential and mixed-use projects located within the Investment Zones are expected to start construction in 2022 and a large majority of Abu Dhabi developers are now considering developing new residential and mixed-use projects in different areas of Abu Dhabi as a result of the general positive market sentiment.

The villa rental market continued to achieve good levels of demand across the board, particularly for the well-developed villa communities on Saadiyat and Yas Islands. However, there are still some discrepancies in the apartment market with positive and negative rental growth for various buildings within communities and across different areas, depending on the building’s age and quality.

Average villa rental rates grew by 2% in Q1 2022, with some developments recording increases of close to 10%. Average annual increases stood at 5%. Office rental rates remained stable over the first quarter, with a marginal annual decline of 1% on average.

When it comes to sales prices, residential sales market activity continued on strong footing in the first