Abu Dhabi apartment and villa rental rates decreased by 2 percent and 4 percent in the second quarter of 2018, according to property services company Asteco.
Its Abu Dhabi Real Estate Report Q2 2018 revealed an annual drop of 10 percent and 9 percent respectively, showing comparable patterns to the last quarter.
Rental declines for studios to three-bedroom apartments ranged from 1-5 percent over the quarter and 5-18 percent over the course of the year.
The highest drops in the villa rental market since Q2 2017 were registered for Golf Gardens (14 percent) and Al Raha Gardens (13 percent).
Asteco said apartment sales prices in the secondary market remained relatively stable over the quarter, however, they recorded an average annual decline of 8 percent.
Al Raha Gardens led the softening in villa sales prices, reporting an average fall of 4 percent in Q2 2018 – compared to 2 percent in Abu Dhabi overall.
John Stevens, managing director of Asteco, said: “Sales in Abu Dhabi remained sluggish, with noticeably low uptake of larger high-end properties. However, off-plan projects with attractive rates and flexible payment plans continued to generate interest, including the newly launched second phase of Al Ghadeer that attracted significant demand.”
Approximately 1,000 residential units were completed in Q2, with the majority of the supply concentrated on Al Reem Island. By end-2018, 5,800 additional residential units are scheduled for handover, mainly in locations such as Al Reem Island, Yas Island, Saadiyat Island, Al Raha Beach and Rawdhat, as well as across mainland Abu Dhabi.
Asteco said demand for office space remained tepid, with generally low levels of uptake, while certain free zone areas performed better, achieving occupancy levels of up to 95 percent.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.