Asteco says 7,300 residential units and 100,000 square metres of office space are earmarked for completion in UAE capital before end-2018
Apartment and villa rental rates declined on average by 3 percent and 2 percent since Q4 2017, while recording annual decreases of 11 percent and 9 percent respectively, according to a new report.
Asteco's UAE Real Estate Report Q1 2018 also said that apartment sales prices in the UAe capital remained broadly unchanged over the quarter, except for Marina Square (-5 percent), Al Reef Downtown (-6 percent) and Sun & Sky Towers (-6 percent).
The report also showed that villa sales prices were stagnant throughout the first quarter, with a slight decrease in Al Reef (-2 percent). Annually, the highest decline in sales prices was recorded in Hydra Village (-8 percent), followed by Al Reef villas (-5 percent) and Raha Gardens (-4 percent).
Asteco said approximately 1,600 residential units were delivered in Q1, with over 75 percent located within the city’s investment zones including Yas Island, Al Reem Island and Al Raha Beach.
More than 7,300 residential units and 100,000 square metres of office space are earmarked for completion before end-2018 although previous delivery patterns suggest a number of these are likely to be delayed, spilling over to 2019, it added.
Among the key projects handed over in Abu Dhabi in Q1 were Ansam on Yas Island, Al Hadeel in Al Raha Beach and Al Muhaimat Tower on Al Reem Island, in addition to several stand-alone buildings in various locations.
John Stevens, managing director of Asteco, said: “The changes reported in these areas are a result of increased competition from new off-plan developments offered at attractive rates and favorable payment plans. Although healthy demand for high-quality, off-plan and newly delivered projects continued, lower-end residential units remained under pressure.”
He added: “Tenants are increasingly taking advantage of the declining rents across the board, and choose to upgrade from apartments to villas or to better-quality and larger units. However, many remain cautious due to economic uncertainties or are waiting for further reductions. People are also moving from older to newer buildings, as these often include parking and other facilities that are non-existent or come at an extra charge in mature buildings.”