2 May 2012
“Challenging” outlook for Abu Dhabi property
The Abu Dhabi real estate market has experienced a decline in sales and falling rents over the past few months.
Cluttons stated the outlook for the emirate’s residential property sector will continue to be “challenging” in 2012, but stressed an improvement is on the horizon.
The REIDIN residential property price indices for Abu Dhabi in March revealed the value of homes declined by 1.02 per cent month-on-month, while rents slipped by 0.36 per cent.
According to Cluttons, rents for apartments have fallen by between six and ten per cent and this downward trend is likely to continue, as more stock is due to come on to the market this year.
However, the firm pointed out there is strong demand for homes in Abu Dhabi, while the government announcement that several “landmark projects” are to be resumed is a further positive step.
Optimism in the sector has also been boosted by the significant profits posted for 2011 by several major developers – including Sorouh and Aldar – in the emirate.