Abu Dhabi property market 'showing signs of bottoming out'
Chestertons says unlikely to see 'same prolonged period of price and rental decreases' in the UAE capital
Abu Dhabi’s real estate market is showing signs of bottoming out after a sustained period of falling capital values and declining rents, according to Chestertons.
Its Abu Dhabi Market Report Q4 2019 said a marginal decline in sales prices and rental rates during the fourth quarter has resulted in renewed optimism in the real estate market, with average villa sales prices declining just 1 percent and apartments notching a 2 percent decrease.
In the rental market, villas witnessed a fall of 2 percent and apartments decreased by 1 percent in Q4.
Chris Hobden, head of Strategic Consultancy, Chestertons MENA, said: “More favourable supply and demand dynamics, coupled with market reforms including new business licenses, long-term residency permits and allowing foreign nationals to own freehold property, are all contributing positively to Abu Dhabi’s real estate sector.
“Going forward, we believe it is unlikely there will be the same prolonged period of price and rental decreases as witnessed over the past five years.”
In the sales market, villa prices remained resilient across most communities with little or no price movements from Q3, the report said.
“Attractive payment plans, such as the Aldar Properties rent-to-own scheme launched in late November, are allowing customers to build equity in their homes for a three-year period. Although such schemes are not new to the UAE, we have noticed a resurgence as developers explore innovative ways to attract buyers” added Hobden.
