Abu Dhabi’s property market recorded an 11.4% rise in Q2, pushing prices up by 48% compared to the same time last year. The latest rise translates into a 19% increase in average house prices during the first six months of this year alone, according to Cluttons.

The firm reports: ‘Villas retained their edge over apartments, with prices rising by 15.1% during Q2; this compares to 8.4% for apartments over the same period.

‘Through the first six months of the year, mid-range apartments on Al Raha Beach, such as those in Al Zeina, recorded the strongest growth in house prices (16.3%). The growing popularity of Al Raha Beach stems from the fact that infrastructure in the area is now well established and a stronger community feel is emerging as more households take up residence.

‘Furthermore, the geographic positioning of the submarket allows easy access to Dubai and is also in close proximity to Abu Dhabi International Airport.’

Cluttons reports that the recent rent cap removal in Abu Dhabi resulted in a switch to owner occupation, fuelling buyer demand. It also found that ‘the relative affordability in some of the capital’s submarkets compared to similar areas in Dubai is helping to drive a heightened level of domestic investor interest, with those now either priced out, or heavily leveraged in Dubai turning their attention to other buoyant markets in the UAE, such as Abu Dhabi.’