ValuStrat statistics show that the majority of new units completed in Q1 are on Yas Island
Residential capital values in Abu Dhabi in Q1 2018 fell 7.5 lower than the previous year and 1.8 percent lower than last quarter, according to new research from ValuStrat.
According to the statistics, the weights residential value in Abu Dhabi in Q1 was AED 11,614 per square metre, with apartments standing at AED 12,884 per square metre and villas at AED 8,600 per square metre.
ValueStrat noted that gross yields averaged 6.6 percent, with 6.7 percent for apartments and 6.3 percent for villas.
All ten areas locations in Abu Dhabi monitored by ValueStrat saw capital value loss. Apartments in Al Reem Island and Al Reef, for example, saw quarter-on-quarter declines of 2.4 percent and 1.9 percent, respectively, while villas in Al Reef and Hydra Village fell 2 percent and Mohammed bin Zayed City fell 2.3 percent.
The rest of the areas examined declined by between 0.9 percent and 1.4 percent during the quarter.
“Abu Dhabi’s residential capital values have been declining for the last two years. However, the rate of decline seems to have slowed over the last 9 months at a rate of less than 2 percent per quarter,” said Haider Tuaima, head of real estate research at ValuStrat.
The research also noted that 12 percent of the projected 5,330 units expected to be completed in 2018 have been completed, with more than 82 percent of the 623 units completed in Q1 located on Yas Island.
Of the remaining residential units under construction, 35 percent are on Al Reem Island.
Additionally, the ValuStrat statistics found that median asking rents fell 8 percent when compared to the same period in 2017. On a quarterly basis, asking rents declined moderately, by 2.7 percent.
Media apartment asking rents also fell 8.1 percent year-on-year, and 1.3 percent quarter-on-quarter, while media villa asking rents fell 9.1 percent and 7.4 percent, respectively.