Rentals across Abu Dhabi experienced an overall decline in the first quarter (Q1) of 2018, compared to the same period last year, according to a report from dubizzle Property, a leading property platform in the UAE.
In its annual Abu Dhabi Property report, dubizzle Property revealed that Al Khalidiyah experienced the largest decline in apartment rentals by 22 per cent year-on-year (YoY), followed by Al Shamkha and Mussafah East (-14 per cent), Al Mushrif (-12 per cent), Al Reem Island (-12 per cent), Al Muroor (-12 per cent) and Al Reef (-11 per cent). Three-bedroom apartments for rent in Al Khalidiyah experienced the largest decrease in rentals by 49 per cent.
Rentals for villas experienced a similar decrease, with Al Raha Beach seeing the largest decline in prices by 16 per cent, followed by Al Mushrif (-15 per cent), Al Raha Gardens (-10 per cent), Al Khalidiyah (-9 per cent), and Al Reef (-5 per cent).
“The rental sector in Abu Dhabi may see further decline into 2018, which can make housing costs for Abu Dhabi’s residents cheaper. Various global and local economic factors have caused residents in the capital to consider more affordable housing options - whether this is moving to newly developed areas, downsizing, or both. This movement naturally has an effect on the rental prices, which in turn provides tenants more negotiating power,” said Samer Abdin, general manager, dubizzle Property.
When looking at the most popular areas amongst dubizzle users, Mussafah East, followed by Khalifa City, Al Muroor, Al Shamkha and Al Mushrif were the top searched areas for both apartments and villa rentals.
Sales prices across the Emirate witnessed similar trends in Q1 2018, with an overall decline in prices in both villas and apartments.
When analyzing apartment sales, Al Ghadeer saw the most significant decline in sales prices with a decrease of 17 per cent, followed by Hydra Village (-9 per cent), Al Raha Beach (-7 per cent), Yas Island (-6 per cent) and Al Reem Island (-3 per cent), and Al Reef (-3 per cent).
The most popular areas searched for by dubizzle users looking to buy villas and apartments were Al Reef, Al Reem Island, Yas Island, Al Raha Beach, and Al Ghadeer, the report said.
This shows that with Al Reef and Al Reem Island being the most in filtered through communities on dubizzle by buyers; both these communities also experience the lowest decline in sale price per ft YoY.
Similar sale price trends were witnessed in neighbouring emirate Dubai in previous years.
“Authorities in the capital and major developers are investing in bringing new and exciting projects to the market; recently, authorities approved three landmark development and tourism projects to be implemented at Zayed Port. The current softening of prices in the capital signals an opportunity for property investors to enter the market as we see it progress through its real estate cycle,” concluded Abdin. – TradeArabia News Service
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