As Ramadan begins, the Abu Dhabi real estate market typically experiences a quieter period, with many buyers fasting and adjusting to new routines. However, developers seize this opportunity to roll out special promotions aimed at attracting investors and homebuyers. According to Ben Crompton, Managing Partner at Crompton Partners Estate Agents, about 70 to 80 per cent of buyers in Abu Dhabi fast during Ramadan, leading to a noticeable dip in market activity at the start of the holy month.
Despite the slowdown, developers use Ramadan as a strategic time to offer discounts, free service charge periods, and rebates on transfer fees. These incentives help reinvigorate interest in various projects. For instance, at Mangrove Village, buyers are offered two years of free service charges and a 2 per cent rebate on transfer fees for five-bedroom villas. Similar deals can be found in areas like Al Raha.
The rental market behaves differently, remaining strong with few Ramadan offers. Rentals are highly price-sensitive, and if priced correctly, they rent quickly. However, the sales market benefits significantly from Ramadan promotions, which are often tied to significant occasions like Eid and Christmas. This strategy allows developers to present incentives without appearing desperate to move stock.
This period also sees an increase in online engagement as people spend more time on their phones due to shorter working hours. Developers ramp up social media advertising to keep their projects in front of potential buyers. Offers like those on Al Naseem Villas by Modon Properties, which include four, five, and six-bedroom villas on Hudayriyat Island, attract considerable interest.
Some premium developers, however, avoid seasonal offers altogether. They focus on the intrinsic value of their communities, emphasizing quality and exclusivity. For example, Lead Development, behind Jubail Island, maintains steady demand by prioritizing client relationships through curated experiences and personalized communication.
In contrast, other developers like Bloom Holding report strong transactions during Ramadan. Their recent launch of Carmona, part of Bloom Living, has seen significant interest from customers and investors. Flexible payment plans and competitively priced units have been highly effective in boosting sales throughout the year.
Overall, Ramadan presents a unique opportunity for Abu Dhabi’s real estate market, with developers using strategic promotions to attract buyers and maintain market momentum.
