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Fri 7 Feb 2020 01:25 AM

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Abu Dhabi property prices fall by 11% in 2019

New ValuStrat report says rental rates drop by 9.3% last year but sees 'encouraging' signs in UAE capital's property market

Abu Dhabi property prices fall by 11% in 2019

Its fourth quarter 2019 Abu Dhabi real estate review also showed that real estate values were down by 2.6 percent compared to the previous quarter.

Abu Dhabi property prices fell by 11 percent in 2019 while rental rates dropped by 9.3 percent, according to a new report by consultants ValuStrat.

Its fourth quarter 2019 Abu Dhabi real estate review also showed that real estate values were down by 2.6 percent compared to the previous quarter.

The ValuStrat Price Index (VPI) for capital values in Abu Dhabi’s residential investment zones for the fourth quarter declined to 69.1 points.

The weighted average residential value in Q4 2019 was AED9,246 per sq m.

Ready properties in Al Reem Island, Al Muneera, Al Reef and Hydra Village saw double digit declines in capital values since Q4 2018, ValuStrat said in the report.

It added that locations that were more resistant to downward pressure, with capital values declining annually in single digit percentages, were apartments in Saadiyat Island and Al Bandar, as well as villas in Mohamed Bin Zayed City and Al Raha.

Abu Dhabi’s gross yields averaged 7.6 percent, the report also noted.

As far as residential supply was concerned, Abu Dhabi City had an estimated 237,864 residential homes stock as of 2019. A total of 3,878 residential units were confirmed to have been completed as total completions represented 62 percent of the projected residential supply estimated at the start of 2019.

“Slowing price declines in some districts and a continued appetite for well-priced quality new home builds from reputable developers are encouraging signs for the residential property market in the capital at this point in the property cycle,” said Declan King, managing director and group head of Real Estate at ValuStrat.