April 17th, 2017 by Own A Space
Abu Dhabi witnessed a further decrease in residential and rental sale prices in 1st quarter of 2017 as compared yesteryear; also a decline in commercial and retail property prices is forecasted to continue throughout the year.
This is the steepest per year decline in the sale prices of villa projects. Golf garden villa, al raha beach, al reef and al zeina villa prices recorded a decline by 11, 8, 6 and 4% resp.
The continuous reduction in number of transactions and sentiment in the capital witnessed property sale price decline in last year which continued in the first quarter of this year. Further decrease is also expected in fragmented nature, in certain communities and property types to be impacted more than others in the capital.
Picture Courtesy: homecaprice.com
Residential rents within main locations will continue to decline due to high vacancy rates because of challenges within some industries like petrochemical and financial services sectors in 2016, particularly affecting the high-end segments and huge residential units.
The report discloses that rents for three-bedroom villas in Al Zeina, Al Raha and Al Reef locations are decreased by 8 to 12% compared to last year. Two-bedroom villas were the most searched for rental properties in Al Reem Island area, which witnessed the shallowest low in its prices (7%), while one-bedroom apartments stoop low to the most (15 per cent).
Picture Courtesy: fssconsult.com
Around 3,100 residential units were finished in Abu Dhabi last year, especially within Reem Island, Saraya, Danet and Rawdhat. Because of this the total property stock comes to 2, 48,000 units in capital.
Since last to last year, the supply completions have dropped annually to a long-term low. As the market adjusted, liquidity got tightened, and developers became more careful because of the impact of tight & strict planning policy and new real estate rules. This reduction is welcomed at a time of poor demand in annual supply completions. While the decline in the oil prices have resulted in the large reduction in demand & the resultant effect on government spending, low supply completions have lighten the extent of over-supply.
Picture Courtesy: pinimg.com
As of now, there are around 5,000 units scheduled for completion this year, although, dubizzle and JLL expect a significant part of this is likely to be delayed at the final stages of handovers and approvals. Future residential supply is anticipated to shift to the New Island Communities, especially Al Raha Beach, Reem Island, Yas Island & Saadiyat Island.
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