JLL report says further 3,000 residential units are scheduled to enter the market by the end of 2017
Abu Dhabi's residential property market continued to face downward pressure in the third quarter of 2017, with rents and prices registering further declines on both a quarterly and an annual basis, according to JLL.
Its latest market summary said approximately 550 units were delivered in Q3, bringing the total residential stock to approximately 250,000 units.
Deliveries included Al Jazeera Tower on the Corniche, the C34 residential tower in Saraya on the Corniche and the Abu Dhabi Marina Development in Al Bateen.
JLL added that a further 3,000 residential units are currently scheduled to enter the market by the end of 2017, mainly within Reem Island, Saadiyat Island and Saraya.
"While transaction volumes have decreased, residential sales continue. Aldar’s Water’s Edge scheme on Yas Island was well received at Cityscape Global, setting a new benchmark for good quality waterfront housing at a lower price point," JLL noted in the report.
The report also said that office rents in Abu Dhabi have remained stable in Q3 despite the decline in demand, as office supply remains stable with no major completions.
However, it added that the delivery of additional supply at a time of weaker demand is expected to place downward pressure on rents over the next 12 months, particularly in secondary buildings.
Retail rents have also remained stable in the better performing malls, despite a continued decline in retail spending during Q3, JLL said, adding that the market has been supported by the absence of further new supply.
"The stable rents disguise a softening in market conditions as mall operators are offering more extensive leasing incentives to maintain and attract retailers," the report noted.
No major completions took place during Q3, with total retail stock remaining at approximately 2.6 million sq m. About 54,000 sq m of retail space is expected to be delivered by the end of 2017, primarily within mixed used schemes.