An estimated 3,200 residential units have been handed over across investment zones in Abu Dhabi during the third quarter, according to a new report.
Cavendish Maxwell said in its Q3 2018 Abu Dhabi Market Report that apartment sales prices have declined by 2.7 percent on average over the last 12 months, while prices fell by 1.7 percent over the quarter.
Villa sales prices also followed a similar trend, with quarterly and annual declines on average of 2.8 percent and 4.2 percent, respectively.
Al Reef villas registered the highest decline of 3.7 percent over the quarter, the report noted.
“Investors are being more cautious and waiting for stability to return to the market before making any decision regarding property purchase," said Manika Dhama, associate partner, Strategic Consulting and Research at Cavendish Maxwell.
The report said residential rents in Abu Dhabi investment zones have registered a 12 month decline of more than 5.6 percdnt on average.
“Meanwhile, tenants continue to be spoilt for choice and are migrating to communities and buildings with superior facilities, thus putting further pressure on older stock," said Dhama.
In Q3, the majority of the residential stock was handed over in Al Reem Island, Al Reef and Al Raha Beach. As of September, approximately 7,700 units are scheduled for handover over the next six months, although actual completions may vary, the report noted.
The key locations for upcoming supply are Saadiyat Island, Yas Island and Al Reem Island, which have a total of over 2,500 units scheduled for completion this year, it added.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.
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