Residential capital values continue to fall in Abu Dhabi, report shows

Asking rents and prices were found to have dropped in the capital in Q1 2018
Residential capital values continue to fall in Abu Dhabi, report shows
By Bernd Debusmann Jr
Sun 29 Apr 2018 02:15 PM

Residential capital values were 14.5 percent lower in Q1 2018 than they were in the same period in 2016 and 7.5 percent lower than they were in 2017, according to new data from ValuStrat.

In a Q1 market review of the Abu Dhabi real estate market, ValuStrat found that the weighted average residential value this quarter was 11,614 per square metre, with apartments averaging AED 12,884 per square metre, compared to AED 8,600 for villas.

Average gross yields, for their part, averaged 6.6 percent, with 6.7 percent for apartments and 6.3 percent for villas.

Of the ten locations examined in the ValuStrat Price Index, all ten recorded quarterly capital value losses, with apartments in Al Reem Island an Al Reef seeing quarter-on-quarter declines of 2.4 percent and 1.9 respectively, compared to 2 percent in Al Reef and Hydra Village villas and 2.3 percent in Mohammed Bin Zayed City.

According to the data, approximately 12 percent of the 5,330 units slated for completion in 2018 have been completed, with more than 82 percent of the 623 units completed in Q1 located on Yas Island.

Of the reminder, approximately 35 percent could be located on Al Reem Island.

Additionally, the report found that the median residential asking prices declined 6 percent year-on-year, with the median asking price for ready apartments standing at AED 13,000 per square metre, down 6.4 percent year-on-year and up 0.8 percent quarter-on-quarter.

For ready villas, the median asking price was AED 10,021 per square metre, a 5 percent year-on-year and 2.3 percent quarter-on-quarter decrease.

In terms of rent, residential asking rents fell 8 percent when compared to the same period last year, as well as 2.7 percent quarter-on-quarter. For apartments, median asking rents fell 8.1 percent year---on-year, and 1.3 percent quarter-on-quarter.

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