(MENAFN - MENAFN) Cavendish Maxwell has released its Q3 2018 Abu Dhabi Market Report providing a summary of the residential market activity and highlighting price and movement and upcoming supply of residential properties. The data is provided by Property Monitor, a real estate intelligence platform powered by RICS accredited property professionals. The report also includes a sector focus on hospitality.
According to the Property Monitor Index, apartment sales prices in investment zones have declined by 2.7% on average over the last 12 months, whereas prices declined marginally by 1.7% over the quarter. Villa sales prices also followed a similar trend, with quarterly and annual declines on average of 2.8% and 4.2%, respectively. Al Reef villas registered the highest decline of 3.7% over the quarter. Developers on the other hand had began launching projects in the middle-income segment since the end of 2017, for instance Pixel Towers in Al Reem Island was launched by Imkan in Q4 2017 with studios starting at as low as AED 560,000. Among more recent launches was the Al Ghadeer Phase II by Aldar with studios starting at as low as AED 350,000 and two bedroom villa/townhouse prices starting at AED 1 million. “Investors are being more cautious and waiting for stability to return to the market before making any decision regarding property purchase.’’ said Manika Dhama, Associate Partner, Strategic Consulting and Research at Cavendish Maxwell.
Residential rents in Abu Dhabi investment zones have registered a 12 month declined by more than 5.6% on average, where apartment rents in Al Reem Island and villa rents in Al Raha Gardens and Saadiyat Beach one bedroom apartments on Reem Island can now be rented at AED 84,000 on average, with rents for this unit type declining by 6.2% over the last 12 months. “Meanwhile, tenants continue to be spoilt for choice and are migrating to communities and buildings with superior facilities, thus putting further pressure on older stock.’’ said Dhama.
In Q3 2018 majority of the residential stock was handed over in Al Reem Island, Al Reef and Al Raha Beach. As of September 2018, approximately 7,700 units are scheduled for handover over the next six months, though actual completions may vary. The key locations for upcoming supply are Saadiyat Island, Yas Island and Al Reem Island, which have a total of over 2,500 units scheduled for completion this year.
Cavendish Maxwell is a highly respected independent firm of chartered surveyors and property consultants, focusing on property services throughout the Middle East and Africa. Established in 2008, Cavendish Maxwell is now one of the region’s most in influential property consultancies, employing over 80 people from offices in Dubai, Abu Dhabi and Muscat.
As a fully qualified member firm of the Royal Institution of Chartered Surveyors (RICS), and with extensive knowledge of the region, Cavendish Maxwell has the necessary experience, expertise and insight to deliver property advice of the highest standard. The company’s reports are used for loan security, audit, insurance reinstatement, dispute resolution, risk management, debt recovery and performance analysis.