Property prices in Abu Dhabi are now 8.3% lower than a year ago, according to a new report
Property prices in Abu Dhabi fell by more than 3 percent during the third quarter of 2018 and are now 8.3 percent lower than a year ago, according to a new report.
The Abu Dhabi real estate review issued by consulting firm ValuStrat showed that residential rents in the UAE capital were also softer, falling 1.3 percent over the last three months.
ValuStrat said the weighted average residential value in Q3 was AED11,011 per sq m, down 3.2 percent.
Abu Dhabi’s gross yields averaged 6.7 percent while all 10 locations monitored by the ValuStrat Price Index witnessed single digit quarterly declines in capital values.
Highest price falls of 4-5 percent where registered for villas in Al Reef and Hydra Village. Marginal price declines of 1.6 percent were found in Mohamed Bin Zayed City.
“With increased activity reported by some Abu Dhabi’s brokerages, asking sales prices witnessed only marginal changes when compared to the previous quarter, down just 0.9 percent for apartments and 0.2 percent for villas,” said Haider Tuaima, head of Real Estate Research at ValuStrat.
As far as residential supply was concerned, the estimated number of homes expected to be completed this year has been adjusted downwards to 4,390 units, with only 1,969 apartments and 67 villas completed during the past nine months.
ValuStrat said Al Reem Island and Yas Island received 42 percent and 27 percent respectively of estimated completions so far in 2018.
Overall median residential asking rents fell 11 percent when compared to the same period last year, it said, adding that on a quarterly basis, citywide asking rents declined by 1.3 percent.
The report also said that office asking rents in primary commercial districts saw a 3.5 percent quarterly drop.
Declan King, managing director and group head, real estate, said: "An apparent deceleration in sales and rental price declines over the third quarter may just be temporary and could gain momentum again later.
"It will be interesting to see if any trend develops and if announced economic stimuli, improved oil prices, and moderate residential new supply have a positive impact on the capital’s property market in the final months of 2018."