(MENAFN- Khaleej Times) Abu Dhabi's residential market got new supply of 1,160 units in the quarter ended September 30th, at a time when rent declined by two per cent.
Rents are expected to further decline as supply will continue to increase with another 3,000 units expected by the end of 2016, says JLL, the world's leading real estate investment and advisory firm in its latest report on Abu Dhabi market.
A total of 1,160 units were delivered during third quarter, bringing the total residential stock to approximately 247,300 units. Deliveries include Shams Tower and Najmat C21 Tower on Reem Island, Saraya One on Saraya and two residential buildings within Rawdhat.
Approximately 3,000 units are expected to enter the market by the end of 2016 mainly within Reem Island, Rawdhat and Saraya.
However, some of the developments are likely to experience delays, says the real estate firm.
The world's leading real estate investment and advisory firm's latest market summary report discusses ongoing weak demand across the office, residential and retail sectors which has been evident since the decline of oil prices at the end of 2014 and continues to impact government spending and general sentiment.
Overall, the report highlights the continued decline in performance of Abu Dhabi's real estate market across all sectors. David Dudley, International Director and Head of Abu Dhabi Office at JLL MENA, said: "Ongoing cost cutting and downsizing in the oil and government sectors have continued to reduce demand across all sectors of Abu Dhabi's real estate market."
"While supply remains under control, increasing vacancy rates are placing downward pressure on residential rents and sales prices. Residents in Abu Dhabi are increasingly looking for cheaper and smaller options owing to further job cuts and reduction in employment allowance and benefits. "The residential market in Abu Dhabi continues to face downward pressure as rents and sale prices registered quarter on quarter declines and annual declines versus Q3 2015.
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