(MENAFN - Khaleej Times) Residential rents and sales prices in Abu Dhabi are expected to see further moderate declines in 2018 owing to the continuous delivery of new supply, says real estate consultancy Asteco.
Average apartment and villa rents declined by 10 per cent and seven per cent in 2017 in comparison to 2016, whilst apartment and villa sales prices declined 10 per cent and four per cent year on year.
While rents for one-bedroom apartments decreased by an average of Dh10,000 per annum, the larger two- and three bedroom units dropped by an average of Dh16,500, says Asteco in its Q4 2017 market update.
Limited economic growth continued to translate into job cuts, reduction of staff allowances and limited new employment opportunities. This, coupled with the increase in new supply, resulted in a drop in sales prices and rents across all asset classes. The decline was most prominent for high and mid-quality properties, the report adds.
"Approximately 9,000 residential units, including 6,200 apartments and 2,800 villas and townhouses are anticipated for completion this year, predominantly within the districts of Reem Island, Al Raha Beach and Yas Island," said John Stevens, managing director, Asteco.
"Based on previous years, the delivery of some of this inventory may be postponed until 2019 such as the delayed office buildings Omega Towers on Reem Island and the ADIB HQ on Airport Road, which were due for delivery in 2017 but are now expected for handover in 2018," Stevens continued.
Around 2,800 apartments and 750 villas and townhouses were delivered in 2017.
While transaction activity for completed properties slowed compared with previous years, newly launched off-plan quality projects came with attractive payment plans and discounts.
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