Abu Dhabi property market cools
Both villa and apartment rents drop according to new report.
July 12, 2010 2:33 by Samuel Potter
Villa and apartment rents in Abu Dhabi have continued to fall on average between 7 percent and a more pronounced drop of up to 15 percent for lower quality properties according to the latest report by Asteco, the largest property services company in the United Arab Emirates.
During the second quarter of 2010, apartments have fallen at a similar rate to that witnessed during the first quarter and that trend is set to continue throughout 2010 as more supply comes on to the market, says the report. It estimated that 4,500 apartments have been constructed with delivery underway, with an additional 8,000 apartments due for completion by the end of 2010.
“The Abu Dhabi real estate market is in a period of transition moving away from an under-supplied landlord controlled market to one with improving quality and choice offering tenants more negotiating power,” said Asteco Property Management CEO Elaine Jones. “These changing market dynamics will continue to put downward pressure on rents, particularly older stock, which should be interpreted as a healthy move for an improvement in business.”