Thursday, Jul 21, 2011
0636 GMT [Zawya Dow Jones]--Rasmala expects Abu Dhabi to experience at least 20% declines in residential property values from current levels of roughly AED1,000/square feet, prior to reaching a sustainable trough. Estimates approximately 40,000 units will be delivered between 2011 and 2013 on an existing install base of roughly 200,000 units, hence 20% incremental supply over three years. Reckons Abu Dhabi will lag Dubai by about nine to 12 months on the property clock. "Although we believe Abu Dhabi will retain a certain premium over Dubai in terms of rents and house prices, both emirates markets are largely correlated in our view, given a similarity in demographics [80%-plus expat community], marginal mortgage financing, substitution effect and meaningful supply-demand mismatches between 2011 and 2013." (nikhil.lohade@dowjones.com)
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
21-07-11 0651GMT
