The re-introduction of a rental cap and increase in affordable housing will see Abu Dhabi property staying  buoyant through 2015, said an industry expert, highlighting the UAE emirate’s strong growth potential and rise in demand for properties,.

“Abu Dhabi’s real estate sector continues to give signs of stabilisation, with an average four per cent quarterly rental growth witnessed due to lack of supply for prime apartments,” said Robin Teh, country manager, Chestertons Mena, an international property agency.

“As housing supply continues to be inadequate, rentals remain a key pressing issue. Q2 2015 recorded the highest level of inflation for the past six years primarily due to the increase in cost of living. As oil prices continue to be volatile, sales price remained sluggish in Q2 2015. The quarter did not witness a substantial increase in prices as these have already peaked post the financial crisis,” added Teh.

The developer’s perception about the property market is set to be optimistic as new developments were launched primarily in Reem, Yas and Saadiyat Islands. This fosters confidence for the buyer in the market as more options are now available over time.

On the other hand, villa sales prices also remained stable in the second quarter (Q2) of 2015, along with the recent launch of several new projects in Saadiyat which witnessed good demand. It is expected that approximately 6,000 units will enter the market by the end of 2015.

“The rental segment witnessed a strong growth overall, as rentals increased by four per cent approximately. Lack of supply in the affordable housing segment continues despite high demand. Over the year, little respite is anticipated as supply is skewed towards high-end properties. The rumours on the rental cap are still unconfirmed, with certain areas experiencing rental hike as much as 50 per cent since 2013,” added Teh.

High demand from MNCs (multinational corporations) as well as the government entities continues to support the high rental growth for ‘Grade A’ offices. Overall, the office segment witnessed a mix of growth and decline. Under the office segment, ‘Grade A’ remains the strongest, as office supply is inadequate compared to the high demand.

Chestertons with its Middle Eastern headquarters in Dubai, UAE, and the company’s office in Abu Dhabi offers a full range of property services, including residential and commercial sales and leasing together with professional property valuation and property management services.

“On the corporate front, we have aptly positioned ourselves to harness the potential that the property market in Abu Dhabi has to offer as many people and organisations choose to make it their base. In order to meet the ever-growing demand for niche properties we are expanding in the capital. Merging our long-standing global industry know-how and exhaustive expertise of our local staff, we look forward to strengthen our position as a leading global property consultancy firm in the market,” concluded Teh. - TradeArabia News Service