Friday, 17 October 2008 |
updated 1 minute ago
00:23 UAE time

YOUR DIRECTORY /

Soaring rents to continue till end of decade

by Reuters on Tuesday, 09 October 2007

Around 140,000 units should come on line in Abu Dhabi, pictured, in 2009 and 2010. (Getty Images)

Demand for housing in Abu Dhabi, the biggest member of the UAE, will probably outpace supply until 2010, spurring rents, Abu Dhabi-based The National Investor said in a report.

After that "we expect a situation of oversupply to threaten the value of the local property market," said the investment bank.

Investors interested in tapping the Abu Dhabi property market "should stay away from single, direct equity investments, which bring significant volatility and risk," and diversify instead, the bank said.

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About 140,000 units should come onto the market in 2009 and 2010, compared with about 10,000 in 2008 and 2009, the bank said. Demand during those three years may average about 18,000 units per year, the bank said.

"The next two years are expected to be very slow in terms of residential supply so rents could continue to grow at the same rate," TNI said.

Companies including Aldar Properties and Sorouh Real Estates are developing about $121 billion of properties, TNI said.

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