Bayut.com report says average apartment rents also fell with largest declines of 9-10% in past 12 months
Rental values in Abu Dhabi have fallen by as much as 16.6 percent over the past 12 months, according to analysis by real estate website Bayut.com.
Its H1 2018 market report for Abu Dhabi said average apartment rental values fell with the largest decreases of around 9-10 percent but the steepest falls were for rental villas in Khalifa City B, where they fell by 16.67 percent since the year-earlier period.
Sale price decreases were modest overall, Bayut said, with the largest being 10.45 percent for studio apartments in Al Reef.
Villa sales prices were more stable than in other sectors, with the largest decreases for 5-bed properties in Saadiyat Island, which fell by 7.3 percent. Elsewhere, prices fell by 1-5 percent over the year.
Bayut said buyers and renters continue to have the upper hand in the Abu Dhabi property market, but price decreases are overall slightly more modest than in Dubai.
Apartment prices fell by between 1-10 percent, with the largest decreases being in Al Reef, where the average prices for studios, 1-bed and 2-bed apartments are all now under the AED1 million mark.
Villa sales prices experienced the smallest decreases of all. Outside Saadiyat Island, the steepest falls being in Hydra Village – a 5.25 percent average decrease for 3-bed properties.
Bayut said the most popular areas for apartment rentals were Mohammed bin Zayed City, where the price for a 1-bed apartment was AED45,000. For sales, it was Al Reem Island, where average studio prices were AED626,000.
For villa sales, Al Reef came out on top, with the average price for a 4-bed at AED2.15 million while for rentals, Khalifa City A was the most popular area, and saw the average price for a 4-bed property fall to AED165,000.
The report also said potential investors in Abu Dhabi showed clear favourites in terms of off-plan projects during the first half of 2018, with Shams Abu Dhabi the most popular -accounting for 98 percent of searches.
Haider Ali Khan, CEO of Bayut, said: “We have seen a pattern of decreasing prices in our recent market analysis based on listed prices by brokers, but in some areas, the decreases were small, which may suggest that some stability is returning to the market.
“Although it seems unlikely that we will see any large increases in rental or sales prices prior to the end of 2018, it is likely that we will see more stability in the later half of the year.”