Abu Dhabi landlords need to adjust rental rates, says Asteco
Landlords in Abu Dhabi may become more flexible with rental rates due to an increased supply…
October 12, 2009 3:49 by kippreport
Landlords in Abu Dhabi may become more flexible with rental rates due to an increased supply of residential properties in the capital, property consultant firm Asteco said in a report.
The firm suggested it is time landlords adjust their rates to market conditions, especially given the current rental rates in Dubai: “These apartments have initially been leasing slowly due to a mismatch between landlords’ rental expectations and those of prospective tenants. This is only natural, discounting will be more prevalent when the market is faced with increased supply, including the ‘Dubai and Drive’ option where the differential in rental prices is still hard to ignore,” the report said.
Almost 1,000 apartments hit the capital’s residential market in the last quarter, mostly in locations off the main island, such as Khalifa City and Mussafah.
Another 400 apartments on Abu Dhabi Island and an unspecified number of units in Khalifa City are expected to flood the market this month, Asteco said.