Abu Dhabi - Mubasher: Abu Dhabi’s real estate sales and rental rates continued to soften in the fourth quarter of 2018, according to the Abu Dhabi Market Report released by Chestertons on Wednesday.
Average apartment and villa sale prices tumbled 2% in Q4-18 from the prior quarter, while year-on-year, apartment and villa prices dipped by 9% and 11%, respectively.
Abu Dhabi’s apartment rents also declined by 4%, while villa rental rates fell 2% from the previous quarter. From an annual perspective, rental rates for apartments and villas retreated by 12% and 9%, respectively.
“The rate of adjustment we’re now seeing is slower than previously experienced, which we believe is an indication that prices have reached more realistic levels in several areas of the capital,” commented Ivana Gazivoda Vucinic, head of consulting at Chestertons MENA.
She forecast that prices would “continue to soften in 2019 as 11,000 units are estimated to be delivered, ensuring Abu Dhabi remains an even greater buyer-friendly market over the next 12 months.”
Sales figures are expected to witness further declines, pressured by oversupply, prompting developers in the UAE’s capital to offer incentives to lure investors to the market, Vucinic stated.
However, in the long term, demand in Abu Dhabi’s residential market is likely to increase with the new 10-year visa for expats, the Chestertons MENA consultant added.
