Abu Dhabi property prices fall 3.2% since end-2018

New ValuStrat research says residential values in Q1 in UAE capital were 12.2% lower than same period last year
Abu Dhabi property prices fall 3.2% since end-2018
Valustrat said Abu Dhabi’s gross yields averaged 7.1 percent, with apartments at 7.4 percent and villas at 6.5 percent.
By Sam Bridge
Fri 19 Apr 2019 09:59 AM

Abu Dhabi residential property prices have fallen by more than 12 percent, according to consulting firm ValuStrat.

Its latest report for Q1 2019 showed that Abu Dhabi’s residential capital values were 12.2 percent lower than last year and 3.2 percent than the previous quarter.

Residential rents were also softer, 2.1 percent down over last three months, the report said.

It added that all 10 locations monitored by the ValuStrat Price Index witnessed single-digit quarterly declines in capital values of less than 5 percent.

Highest quarterly price falls were registered for villas in Al Raha and Hydra Village, 4.3 percent and 4.1 percent respectively.

On an annual basis, most areas lost 12 percent in capital values but two locations were slightly less affected by the negative trend - apartments on Saadiyat Island and villas located in Mohamed Bin Zayed City saw declines of 9.3 percent and 7.1 percent respectively.

The rental VPI, which monitors five apartment and five villa locations within Abu Dhabi’s investment zones, stood at 77.2 points in Q1, declining 22.8 percent since 2016, softening 2.1 percent quarterly and 6.9 percent annually.

Valustrat said Abu Dhabi’s gross yields averaged 7.1 percent, with apartments at 7.4 percent and villas at 6.5 percent.

The average occupancy rate among a sample of 31,073 residential units stood at 77 percent it added.

As far as residential supply was concerned, a total of 4,292 homes were completed during 2018 - 3,365 apartments and 927 villas.

Valustrat said 3,357 apartments and 2,867 villas/townhouses are expected to be delivered during this year.

“Interestingly, as demand for affordable homes grows, asking sales prices for villas in Abu Dhabi saw a slight uptick of 1 percent when compared to the previous quarter. It remains to be seen if this trend continues over the coming quarters,” said Haider Tuaima, head of real estate research at ValuStrat.

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