GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Real Estate and Retail

 
  Share

 

•    Sluggish job market and a shrinkage in the oil and gas sector continue to place pressure on the Abu Dhabi real estate market;
•    Apartment sales prices down 1% and villas down 9%; apartment and villa rents down 3%

12 April 2017 - Dubai UAE: Average apartment sales prices in Abu Dhabi fell by 1% in Q1 2017 while villa prices dropped by 9% amid  public and private sector downsizing, a byproduct of the static oil and gas sector, according to the Abu Dhabi Residential Market Q1 2017 report from leading international property agency Chestertons MENA.

“Sales prices are expected to further decline due to redundancies attributed to the shrinkage of the oil and gas sector. We believe the trend of downsizing or moving to more affordable areas will continue until 2018, when an expected increase in government spending could improve market sentiment,” said Robin Teh, UAE Country Manager/Director Valuations & Advisory UAE, Chestertons MENA.

On average, villa sales prices fell by 9% in the first three months of the year. Al Ghadeer, Al Reef and Khalifa City witnessed the largest percentage drop resulting in prices falling to AED915/sqft, AED897/sqft and AED747/sqft respectively. Al Raha Gardens also witnessed a sales decrease, although less severe, of just under 6% to AED931/sqft.

Apartment sales prices, on average, declined by 1% in the first quarter of the year. Areas bucking the trend included Al Reef Downtown, which saw an increase of 1% to AED948/sqft, Al Reem Island remained flat at AED1,362/sqft. Al Gadeer witnessed a 3% decrease to AED1,009/sqft, while Al Raha Beach fared slightly better with a decline of just under 1% to AED1,601/sqft.

Ivana Gazivoda Vucinic, Head of Advisory & Research, Chestertons MENA, said: “Sales figures, particularly in the villa market, have been sliding gradually since Q4 2014 further underscoring the quiet sales market in Abu Dhabi. Housing benefit packages have been impacted by cost cutting moves in many companies which may have had a knock-on effect on the villa market.  

“Sales prices are likely to continue to ease throughout the remainder of 2017 and into 2018, however we do expect the market to rebound with reinvigorated activity.

Apartment rents declined by an average of 3% in Q1 compared to the previous quarter, Al Raha Beach witnessed no change, while Al Ghadeer fell on average by 1%. Al Reef Downtown fell by an average of 6% and Al Reem by 4.5%.

“Apartment rents have declined across the board as the trend for more affordable accommodation continues. A two-bedroom apartment in Al Raha Beach is now available for AED155,000 annually; while in Al Reef Downtown and Al Reem Island prices for a two-bedroom start at AED92,000 and AED125,000 respectively,” added Gazivoda Vucinic.

Similar to the apartment rental market, Villas also witnessed softening across the board by 3%. Villas in Al Reef, Al Raha Gardens and Khalifa City saw rental decreases of between 1% and 7%. 

According to Gazivoda Vucinic new supply will hinder the market further. “An additional 4,000 apartments and villas by the end of 2017 will add further pressure to the much-maligned rental market in Abu Dhabi.”

 

 



Posted by : GoDubai Editorial Team
Viewed 10297 times
Posted on : Wednesday, April 12, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Launches, Exclusive Promotions and Payment Plans Attract Thousands of Investors to Cityscape abu dha...
Next Story : International House for Real Estate Project Management Launches ‘Unleash Your Inner Entrepreneur Cam...
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Global brands with lowest cost at Karama Ware house sale from this Thursday
Glam's Makeup Launches in the Middle East
Review: Facial with Dr Renaud's range at Nazih
CFB T3 000 Manufacture Movement Pioneering Peripheral Technology
Glasshouse Collection from Olivia Burton
CALVIN KLEIN WOMEN: The first CALVIN KLEIN fragrance developed under the vision...
Anivagene Launches in the UAE
Mr. Burberry Indigo Eau De Toilette
Hour Choice presents Coach New York Collection
Prevention, Not Cure: Kaya's ‘Hair Strength Therapies' Set to Rid the Gulf of it...
Tommy Hilfiger Iconic Sport collection
Matthew Fitzpatrick Wins the 2018 Omega European Masters
Executive Tourbillon Free Wheel
Introducing New Make-up From Rodial That You Need In Your Kit
Australia's Number No.1 Natural Skincare Brand* Partners With Jessica Kahawaty
Rado reimagines a bold 1960s classic for the 21st Century
Scuderia Ferrari presents Fall winter collection
Kate Spade New York Presents Debut Collection From Creative Director Nicola Gla...
Introducing VK Beauty Lounge & Bar
Tata Communications Strengthens Cyber Defence in the Middle East with the Launch...
Samsung Launches the New Galaxy Watch in the UAE
Rolls-Royce Motor Cars Takes the Luxury of Privacy to a New Level
Facebook Launches Community Help on Facebook Lite
Dubai Culture Organises ‘Writing Literature Novels and Editing them as Play Scri...
Alina Anwar Couture Launches in UAE
British Classics Make a Comeback in Jack Wills AW18 Collections
Introducing Home Fragrance at Robinsons, Dubai Festival City
Bring a Touch of Sophistication to Your Home with The Exclusive SmegXDolce&Gabba...
Up Your Health and Lifestyle Game with the Huawei TalkBand B5
du and Holidays by flydubai partnership takes flight to bring great experiences ...
‘Unseen Potential' - Art from Scrap and Discarded Parts
CNN's Inside the Middle East explores the region's evolving photography scene
Ferrari World Abu Dhabi invites guests to enjoy the spectacular Friends & Family...
Majid Al Futtaim and UNICEF Partner to Help Send 1 Million Children to School by 2020
New Google Search feature launches for job-seekers in Arab world
Honda voted “Preferred Sedan Car Brand of the Year” for the fourth year in a row
Audi headed for the future with Formula E and DTM
Roberto Cavalli's Exclusive Duo of Fragrances
Sheikh Zayed, the First Falconer and Nature Protector
Al-Futtaim Toyota's Upgrade campaign brings back the hottest car deals
Your skin needs more than just sunscreen
UHOA goes live with #YouBeUganda at Expo 2018
PAN Emirates bedroom festival with discount up to 70%
Abu Dhabi International Airport Hosts Sheikh Zayed Photo Exhibition
FDI flow in to Bangladesh jumps 22.52% last year to US$2.45 billion that prompts...
Why the Modern-Day Oil and Gas Industry Needs Millennials to Survive?
Afghanistan Premium League T20 (APLT20) Draft 2018
Defying Age With Skin Republic's Gold and Platinum Face Masks
Al-Futtaim ACE DIY and Home Security promotion
Restrictions on Employment of Foreign Nationals in Retail Sector Forthcoming