Prime Abu Dhabi property prices up 8% in Q1

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Bloomberg)

(Bloomberg)

Sale prices of prime Abu Dhabi residential properties rose by 8 percent in the first quarter of 2013, according to a report from Jones Lang LaSalle (JLL).

The real estate services firm’s latest Abu Dhabi Market Overview Report found that average asking prices within investment areas increased to AED12,000 per sq m for villas and AED9,900 sqm for apartments.

JLL attributed the rises to improving facilities and amenities in masterplanned areas, increased job stability, government investments in infrastructure and housing, and the market’s status as a safe haven amid political unrest. It said that oversupply of housing in Abu Dhabi continued to affect the market.

“While it is encouraging to see the market moving upwards again, it is important to note that these improvements do not represent a market-wide recovery, but relate to selected high quality developments – with performance continuing to diverge between high grade and low grade product,” said David Dudley, head of Abu Dhabi office at JLL.

The report noted Abu Dhabi’s property market cycle is a time lag to that of Dubai’s, meaning the recent recovery in that emirate’s real estate sector is influencing that of the UAE capital. JLL said earlier this week that apartment prices in Dubai picked up 18 percent in the first quarter of 2013.

In Q1 2013, prime residential rents in Abu Dhabi rose by 8 percent in selected higher quality schemes, while those in secondary quality projects continued to fall, JLL said.

Overall, the office market remains over-supplied, the report added, although prime office rents have begun to stabilise over the last three quarters.

While not as severe as the property downturn witnessed in Dubai, prices in Abu Dhabi have plunged by close to 50 percent since their 2008 peak.

In recent months Abu Dhabi’s government has pledged to invest $90bn in new infrastructure and is also forcing government employees to live within the emirate’s boundaries or lose generous housing allowances. Both moves could bolster the UAE capital’s property market, analysts say.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Time to invest?

Time to invest?

Foreign investors are seeing Qatar as an ideal place to purchase...

1
Heading for a correction?

Heading for a correction?

Property prices may have held relatively steady in Lebanon during...

1
Most Discussed