Thursday 28 March 2024
 
»
 
»
Story

Abu Dhabi property rentals, sales stabilise in Q3

ABU DHABI, October 30, 2014

The real estate market in Abu Dhabi continues to see a stabilisation of rental and sales prices for completed properties, a report said.

However, majority of released units from key developers were sold on the launch day itself, added the Emirates 24/7 report, citing the latest quarterly report by MPM Properties, the real estate subsidiary of Abu Dhabi Islamic Bank (Adib).

Residential sales prices and rental rates across the Investment Areas witnessed a growth of five per cent during the past three months, the report said, adding that new supply has continued to slow down.

The office sector has seen higher occupancy ratios, especially for Grade A developments. Due to limited availability, deals being closed are generally for smaller spaces, which, in some cases have achieved rents of more than Dh2,000 per sq m ($544).

Occupancy levels in the retail sector continue to see improvement among off-island malls, the report said. Some prime retail malls in Abu Dhabi have achieved rental increases of between 10-15 per cent on lease renewal, it added.

Abu Dhabi saw four new hotel apartment buildings entering the market in Q3, with a total of 658 rooms. There are nearly 5,000 additional hotel rooms in the development pipeline, of which 2,053 are under construction and scheduled for completion in 2015, the report said.

"Our findings show that the outlook for the rest of the year and into 2015 is pretty stable, though there are a number of pockets of activity or shortages of higher quality space across all sectors which are resulting in some prices falling outside of the mean averages that we have identified,” Paul Maisfield, CEO of MPM Properties, was quoted as saying in the report.

“The fact that our Rental Index shows that rents are still in the range of 0-5 per cent highlights the fact that the market is self-regulating following the removal of rent cap last year."
 




Tags: abu dhabi | real estate | rents | housing market |

More Construction & Real Estate Stories

calendarCalendar of Events

Ads