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



•    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 9479 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


Back to Top  
Most Viewed Press Release posted in the last 7 days
Bhima Jewellers Wows Women on International Women's Day
Foreo Declares 2018 the Year of Confidence
Beauty Indulgences for Mums this Mother's Day
Built for the Way We Communicate Today: Samsung Galaxy S9 and S9+ Launches in the UAE
The Ultimate Mother's Day Beauty and Wellness Gifts
The Sheet Mask Trend
Design International to open doors at d3
Filorga Launches Lift Range
Tissot PRS 516 Alpine Limited Edition A sporting tribute
Rise and Shine with Sophie's
International fragrance houses look to Middle East as inspiration for global per...
SMCCU opens its doors for SIKKA Art Fair
Max launches its Inaugural Abaya Collection
“The Night of Italian Design” at D3 Attracts Design Enthusiasts
It's Mother's Day!
LULU Organic Food Activation
Al-Futtaim Honda launches 10th generation Honda Accord
Mother's Day Offer from Blush N Curls Salon
Iconic milkshake brand Keventers to open 30 outlets across the UAE in 2018
Top Perfume Picks for Mother's Day @ Glambeaute.com
An Open Secret - The new Flying Regulator Open Gear provides deep insights
Luxury First: Range Rover Sv Coupé Debuts at Geneva Motor Show
The Global Sensation UFO Lands in Europe at Cosmoprof 2018
Nissan's e-POWER technology wins environmental award
Drink yourself to looking younger with Skinade
UAE Jiu-jitsu Federation® Conducted the Official Weigh-ins of Abu Dhabi Grand Sl...
Reading Champions Declared at 10th Emirates Airline Festival of Literature
Preps for the Fazza Championships for Shooting Saktoun Riffle begin on March 11
Own your pores like a Bioré Princess!
A Meet & Greet with the Pakistani Cricket Sensation Umar Akmal
OMEGA Launches its NATO Strap “Pop-Up Boutique” in Paris
Cadillac Alghanim kicks off world-class opportunity in Kuwait
The Dubai Mall unveils Fashion Avenue; the region's most prestigious luxury des...
The V-Tox Facial by Linda Meredith Skincare
Discover the MISA Cho Gong Jin Oriental and Herbal Skincare Range from Missha
Elina Svitolina takes New York by storm and wins it all!
Johnson's® Baby Launches Its First Semi-therapeutic Product Range
Corporate Power Dressing redefined at Kachins Signature
Arabian Healthcare Group and Dignity Health USA team up to expand world-class cl...
UAE's first ICU Symposium attracts over 150 of GCCs top healthcare professionals
Velvet Caviar meets Roger Dubuis Diva power
Dubai Customs commemorates 30th anniversary of the Harmonized System
Sanofi introduces innovative therapy to help address high unmet medical needs of...
Making First Impressions Finer
10th Emirates Airline Festival of Literature Ends with a Bang!
Alexey Firsov Solo Exhibition
PCFC, GDRFA conclude Successful Marriage program ahead of 7th Mass Wedding
Evonik Acrylics Africa expands with a new location in Cape Town
Danube Properties is all set to sparkle with their latest “Jewelz”.