Abu Dhabi – Mubasher: Abu Dhabi’s real estate market is expected to see the entry of 4,000 residential units by the end of 2017 in, mainly within Reem Island, Saraya and on the Corniche, according to a statement by Jones Lang LaSalle (JLL).
Total new residential units are expected to reach 254,000 units by the beginning of 2018, and 259,000 units by the beginning of 2019.
Around 900 units were delivered during the second quarter, bringing the total stock to around 250,000 units.
"Mergers, job cuts, and reduced government spending have continued to impact employment and population, leading to a decline in occupier demand and residential rents," JLL said.
“Residential sale prices have also declined, affected by the continued reduction in transaction volumes and sentiment,” the statement highlighted.
“Overall, the second quarter in Abu Dhabi saw a decline in residential and hospitality performance, while retail and office markets remained relatively stable," JLL said.
As for the office market, demand fell, following consolidations and downsizing in the oil, financial services, and government sectors, but office rents remained unchanged for both Grade A and Grade B spaces.
The retail market remained stable despite continued reduction in spending.
The hospitality market recorded a 7% drop in average daily rates (ADRs) and a 3% decline in occupancy levels in Q2-17, compared to the prior year period.
