Abu Dhabi - Mubasher: Abu Dhabi’s real estate market has seen further softening in its residential and office markets, according to a statement by Cluttons.
The potential buyers’ ‘wait and see’ attitude seen in the emirate is mainly attributed to the back of “wider global economic trends, and economic uncertainty caused by the recent US presidential election”.
“We have seen a notable acceleration in the residential market correction as a result of increasing global economic uncertainty and the protracted oil and gas sector's decline, building during Q3 and being further exacerbated,” according to Faisal Durrani, Head of research for Cluttons said.
“We wait to understand the full impact of Mr. Trump's election as President of the United States of America,” Durrani added.
The 10% fall expected in villa values this year is expected to be followed by a decline of around 7% in 2017.
Apartments values are likely to decrease by 4% this year and a further 2% to 3% fall next year.
Abu Dhabi’s residential market continued to soften during the third quarter with the 2.4% decline in capital values, outpacing rental declines (-1.0%).
Rents across the city’s residential investment areas are down by 9.4% on a year to date basis, while home values have fallen by 5.2%.
