Friday, Oct 07, 2011
Gulf News
Abu Dhabi There was a noticeable drop in the rate of decline of rental values in Abu Dhabi during the three months ended September, with those for apartments down 6 per cent compared with the 8 and 9 per cent during the previous two quarters.
In comparison, villa rents in the third quarter were relatively static for the second consecutive quarter; however, villas in off-island locations such as Mohammad Bin Zayed City and Khalifa City continued to slide 5 per cent on average,” the report added.
The most significant new supply into the market was at the Al Zeina project at Raha Beach, which comprises 952 apartments, 26 penthouses, 119 town houses and 124 villas. Meanwhile, at Marina Square on Reem Island, despite receiving completion certificates for Zone A in March, uncertainty surrounds the handover dates to individual investors in Zones B, C and D, the report added.
“The strong rental demand we are witnessing is being driven by existing residents’ desire to upgrade and secure better value for money accommodation,” said Elaine Jones, Asteco’s chief executive. “This trend is set to continue as improved quality accommodation is handed over in the coming months.
However, David Dudley, regional director at Jones Lang LaSalle, said that over the last quarter residential and commercial rents in Abu Dhabi have seen a “soft decline.” In the coming 12 months, with more new supply coming in, residential and office rents are set to get cheaper.
Dudley, however, predicted the decline in residential rents would be far greater than for the offices, which have already seen a marked decline in recent months.
Stimulating sales
Asteco also said to try and stimulate sales activity in the market, Aldar has announced a rent-to-own scheme on unsold properties at Al Zeina and Al Bandar. “Tenants will pay a fixed rent for two years with 100 per cent of the first year’s rent and 90 per cent of the second year’s rent converted into a deposit towards purchase at the current sales price, although no further details have been released so far,” it added.
5%
slide in villa rents in off-island locations
952
apartments at the Al Zeina project
124
villas at the Al Zeina project
dummy kicker
By Himendra Mohan Kumar?Staff Reporter
Gulf News 2011. All rights reserved.
