Abu Dhabi real estate transactions rise 28% to Dh74bn in 2020

Khalifa City recorded the highest value in terms of total sales at Dh3.6bn

The total value of real estate transactions in Abu Dhabi jumped 28 per cent to reach Dh74 billion.  Victor Besa / The National 

The total value of real estate transactions in Abu Dhabi jumped 28 per cent to Dh74 billion ($20.14bn) in 2020 on the back of the emirate's measures to support the property market in the wake of the coronavirus pandemic.

The total number of property deals reached 19,000, which includes sale and mortgages of land as well as buildings and real estate units for all types, during the period, the state news agency Wam reported on Thursday, citing a report by the Department of Municipalities and Transport.

“The surge in the value of real estate transactions despite the extraordinary conditions resulting from the repercussions of the coronavirus pandemic on the global economy highlights the flexibility of the Abu Dhabi real estate market,” Wam cited Adeeb Al Afeefi, executive director of the real estate sector at the department as saying.

The value of real estate deals touched Dh30bn through 8,000 transactions, whereas the value of mortgage deals reached Dh44bn through 11,000 agreements. It did not provide comparative figures for the previous year.

Of the total real estate deals, the sale of land and buildings totalled Dh25.3bn, while real estate units' value was Dh5bn, according to the data.

Lands and buildings made up the majority of mortgage transactions, with a value of Dh42.5bn, while real estate units accounted for 3.2 per cent of total real estate mortgages at Dh1.2bn in value.

Khalifa City recorded the highest value in terms of total sales at about Dh3.6bn, followed by Yas Island with Dh3.3bn and Al Reem Island with Dh3bn, the data showed.

The department exempted individual investors and companies from 34 of real estate registration fees until the end of 2020 including 2 per cent sale and purchase fees, 2 per cent off plan sale fee and land exchange fees. The initiative is among several measures the department has taken to support the emirates real estate sector, Mr Al Afeef said.

Average apartment prices in Abu Dhabi fell 3.8 per cent last year, with overall rent decline of 4.8 per cent. Abu Dhabi’s villa sector saw a more moderate decline, with annual fall of 3.4 per cent and 3.6 per cent across prices and rents, respectively, according to a Chestertons report.