Abu Dhabi's property sector showed signs of recovery in the second half of last year as movement restrictions relaxed across the country, according to a new report.
The government’s economic stimulus packages and prompt measures to prevent oversupply in the market have boosted the sector's competitiveness, according to Bayut and dubizzle’s annual report for 2020.
Relief programmes announced by Abu Dhabi-based developer Aldar Properties also supported the property sector, while attractive property prices continued to incentivise buyers and investors, the report said.
In addition, the emirate's recent public health campaigns and UAE-wide social reforms have also boosted confidence amongst local and overseas investors.
"Given the exceptional circumstances we encountered in 2020, it’s remarkable to see how demand has sustained and even grown in the capital," Haider Ali Khan, the chief executive of Bayut and dubizzle and the head of EMPG Middle East and North Africa, said.
"It’s not surprising that rents have become more competitive, considering how price sensitive the market is at the moment, but what is reassuring is the performance of the sales market."
He added that price fluctuations in the sales market have been "extremely controlled", with some high-end areas even recovering over the course of the year. This was partly due to the government’s efforts to contain the pandemic and support the real estate sector in Abu Dhabi, he said.
A separate report by Valustrat also indicated signs of recovery in the Abu Dhabi property market at the end of last year.
In the fourth quarter of 2020, the emirate's residential investment zones saw a one per cent quarterly uplift for the first time in three years, it said.
According to Bayut & dubizzle’s annual report for 2020, residential property prices in Abu Dhabi have shown resilience, reporting declines of under 10 per cent for properties for sale in the most popular neighbourhoods.
Prospective buyers and investors interested in affordable apartments have focused their attention on freehold suburbs such as Al Reef and Masdar City, while those looking for upscale flats preferred Al Reem Island, it said.
Al Reef has continued to take the lead for affordable villa sales, while Saadiyat Island and Yas Island have maintained their appeal among investors interested in upscale villas.
Budget-conscious tenants looking for apartments also preferred suburban communities and older central neighbourhoods such as Khalifa City A and Al Khalidiyah. Those interested in upscale apartments have searched for luxurious units in waterfront districts such as Al Reem Island and Corniche Area.
Mohammed Bin Zayed City remained the top choice for tenants interested in budget rental villas in 2020 and Al Bateen has maintained its popularity among tenants looking for expensive villas for rent, the report said.
Looking ahead, both reports are optimistic about Abu Dhabi's property market in 2021.
Subject to the health crisis being resolved, the economy is expected to improve and with Dubai Expo and the 50-year anniversary of the UAE, market sentiment is expected to pick up and could head towards bottoming out during 2021, Valustrat said.
With balanced new supply coming to Abu Dhabi in the coming years, rents and capital values in established villa locations could stablise and perhaps see gradual appreciation, while apartments could follow suit towards the end of 2021, it said.
Bayut & dubizzle’s report was similarly upbeat about prospects for 2021.
"We’re optimistic about the year ahead, especially since the capital has left no stone unturned in combating the pandemic," Mr Khan said. "The widespread vaccination campaign launched by the Abu Dhabi health authorities has also been critical in cementing the emirate’s appeal among residents and investors.”
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
Match info
Premier League
Manchester United 2 (Martial 30', Lingard 69')
Arsenal 2 (Mustafi 26', Rojo 68' OG)
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
