New supply in Abu Dhabi pushed rents and leases down as much as seven percent in the fourth-quarter of last year with further easing expected in 2011, the latest report from a property management firm said on Sunday.
Price-driven demand, reduced company housing allowances and landlords being flexible with rates contributed to the decline, the report from Asteco said.
Leasing rates for apartments in Abu Dhabi’s outskirts fell by an average of seven percent, while within the city it dropped by 6 percent during the period. Rents for villas declined by five percent, the report said.
“Many new opportunities will arise in 2011. Buyers and tenants will have a wide range of choices shortly,” Elaine Jones, chief executive of Asteco, said in the report.
The long-awaited first phases at Reem Island and new supply at Al Raha Beach are expected to come to the market soon, adding further downward pressure on resale and rental rates in Abu Dhabi, she said.
Office rents continued their downward trend from the last quarter, losing seven percent across the sector, the report said.
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