Media monitoring services compiling news from the major news providers in the UAE
Q2 Reports Show A Fall 15% In Abu Dhabi Rents
Jul 06, 2012
According to the Q2 report, rental rates of Abu Dhabi residential properties fell by up to 15% as compared to first quarter. The reason is that new supply flooded the market. Up till now, a total of 7400 apartments and 1675 villas are added in the supply line in the rapidly expanding real estate market of Abu Dhabi. Due to this expansion, existing residents are instigated to upgrade their living standard and move to a better quality residence.
Due to increased properties supply, the rental rates have fallen. The biggest slump was noticed in Marina Square properties that fell by 15 percent, followed by Mussafah and Sas Al Nakhl that both dropped by 14 percent. By the looks of it, this is not the end of the fall in rental values since another 7000 apartments and 4560 villas are about to be added in the real estate market in the second half of 2012 that will further pressurized the market.
As per the recent trends, apartments in Shams, Marina Square and Raha Beach are very popular and highly demanded properties but the continuous addition of properties in supply pipeline indicates that property prices will go down further. However, these areas also suffered a 4 percent decline in prices.
Investors have started to invest in properties because of the rental and sales market situation and happenings that have led the customers to improve their living standard due to price reduction in rental amounts and availability of affordable mortgage options. Sale price is also going down due to oversupply in the market. Therefore, increased transaction activities will be observed in the second half of year 2012.