Rental values in Abu Dhabi fell by up to 20 percent in the first quarter of 2009, according to new figures published by Asteco, the UAE’s largest property services company.
Average rents dropped most on mainland Abu Dhabi, while rates for properties on the island slipped by about 10 percent, according to the report.
The dramatic fall in rents echoes those in UAE neighbour Dubai where analysts predict up to 50 percent declines from mid 2008 peak prices.
“The majority of villa rental rates have now stabilised to levels similar to mid-2008 across the emirate,” said Asteco’s managing director, Andrew Chambers in comments published by UAE daily The National on Monday.
But the report also reveals that rental rates in some of the city’s most sought-after locations such as Khalidyah and the Corniche have mostly remained unchanged.
“This is the first time we have seen a drop in rental levels since the start of the credit crunch and while the drops are not positive it was not as bad as we expected,” Chambers told the paper.
Commercial property rents have also fallen, in some districts by more than 20 percent, according to the report.
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