Apartment rental and sales prices in Abu Dhabi continued to decline during Q2, with new stock continuing to outweigh demand according to Asteco’s latest Q2 2011 report.
Meanwhile rents for quality villas, which are still in short supply in Abu Dhabi remained relatively stable, but additional supply will put some downward pressure on prices as the year progresses.
In its latest quarterly assessment of the Abu Dhabi property market, the property consultant found apartment rental prices declined by an overall average of 9% during the second quarter.
“The downward trend is unlikely to change in the short term due to further prime stock entering the market across a number of key landmark developments in the second half of the year. This will encourage existing tenants to look for greater value-for-money in the capital, applying yet more downward pressures on rental prices,” said Elaine Jones, CEO, Asteco Property Management.
The report also pointed to some areas that are beginning to buck market trends, such as the Al Bandar development at Raha Beach. The few units that have been handed over have managed to secure moderately higher rents than what had been achieved in the previous quarter.